Netflix Inc (NFLX)
Gross profit margin
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 14,007,930 | 12,930,480 | 12,456,520 | 12,222,080 | 12,447,260 | 12,469,110 | 12,609,070 | 12,653,450 | 12,365,160 | 12,374,700 | 11,665,710 | 10,846,520 | 9,719,740 | 9,241,870 | 8,820,970 | 8,233,850 | 7,716,240 | 7,168,270 | 6,489,530 | 6,076,910 |
| Revenue (ttm) | US$ in thousands | 33,723,290 | 32,742,520 | 32,126,440 | 31,909,280 | 31,615,550 | 31,472,820 | 31,030,700 | 30,402,340 | 29,697,850 | 28,632,970 | 27,585,140 | 26,391,650 | 24,996,060 | 23,819,050 | 22,628,310 | 21,403,140 | 20,156,440 | 18,875,850 | 17,630,320 | 16,614,470 |
| Gross profit margin | 41.54% | 39.49% | 38.77% | 38.30% | 39.37% | 39.62% | 40.63% | 41.62% | 41.64% | 43.22% | 42.29% | 41.10% | 38.89% | 38.80% | 38.98% | 38.47% | 38.28% | 37.98% | 36.81% | 36.58% |
December 31, 2023 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $14,007,930K ÷ $33,723,290K
= 41.54%
Based on the provided gross profit margin data for Netflix Inc., we observe fluctuations in the company's profitability over the past eight quarters. The gross profit margin, which represents the percentage of revenue retained after accounting for the cost of goods sold, has ranged from 38.30% to 41.62%.
In the most recent quarter, ending December 31, 2023, the gross profit margin stood at 41.54%, reflecting an improvement compared to the previous quarter. This increase indicates a more efficient management of production and distribution costs relative to revenue, which may be attributable to various factors such as pricing strategies, content acquisition costs, or operational efficiencies.
Conversely, the gross profit margin for the June 30, 2022, quarter was 40.63%, while it decreased to 39.37% in the subsequent quarter. This decline suggests a potential rise in the cost of goods sold relative to revenue during that period, possibly stemming from increased content production or licensing expenses.
Overall, the trend in Netflix Inc.'s gross profit margin portrays the company's ability to manage its production and distribution costs in relation to its revenue stream. Investors and stakeholders may monitor these fluctuations closely to discern the impact of operational decisions and market dynamics on the company's profitability.