Netflix Inc (NFLX)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 6,954,000 | 5,632,830 | 6,194,510 | 4,585,290 | 2,604,250 |
| Revenue | US$ in thousands | 33,723,300 | 31,615,600 | 29,697,800 | 24,996,100 | 20,156,400 |
| Operating profit margin | 20.62% | 17.82% | 20.86% | 18.34% | 12.92% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $6,954,000K ÷ $33,723,300K
= 20.62%
Netflix Inc.'s operating profit margin has shown positive trends over the past five years, indicating an improvement in the company's operational efficiency. The operating profit margin increased from 12.92% in 2019 to 20.62% in 2023. This signifies that for each dollar of sales, Netflix generated a higher operating profit in 2023 compared to previous years. The steady improvement in operating profit margin suggests that the company has been effectively managing its operating expenses and generating higher profits from its core business activities. This trend reflects positively on Netflix's ability to efficiently convert its revenue into operating profits, which is a key indicator of the company's financial health and operational performance.