Netflix Inc (NFLX)
Net profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,407,990 | 4,491,920 | 5,116,230 | 2,761,400 | 1,866,920 |
| Revenue | US$ in thousands | 33,723,300 | 31,615,600 | 29,697,800 | 24,996,100 | 20,156,400 |
| Net profit margin | 16.04% | 14.21% | 17.23% | 11.05% | 9.26% |
December 31, 2023 calculation
Net profit margin = Net income ÷ Revenue
= $5,407,990K ÷ $33,723,300K
= 16.04%
The net profit margin of Netflix Inc. has shown a generally positive trend over the past five years. The margin experienced a notable increase from 2019 to 2020, signifying an improvement in the company's ability to convert revenue into profit. This positive trend continued into 2021, where the net profit margin peaked at 17.23%, indicating efficient cost management and strong revenue generation. Although there was a slight dip in 2022, the net profit margin remained relatively high at 14.21%. In 2023, the margin further increased to 16.04%, demonstrating the company's continued profitability. Overall, the trend reflects Netflix's ability to effectively control costs and generate profit relative to its revenue over the years.