Netflix Inc (NFLX)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 6,954,000 | 6,007,794 | 5,624,424 | 5,375,524 | 5,632,834 | 5,714,700 | 5,936,930 | 6,206,280 | 6,194,510 | 6,516,982 | 6,076,592 | 5,586,892 | 4,585,288 | 4,089,558 | 3,754,937 | 3,103,426 | 2,604,254 | 2,361,509 | 1,861,938 | 1,617,732 |
| 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 |
| Operating profit margin | 20.62% | 18.35% | 17.51% | 16.85% | 17.82% | 18.16% | 19.13% | 20.41% | 20.86% | 22.76% | 22.03% | 21.17% | 18.34% | 17.17% | 16.59% | 14.50% | 12.92% | 12.51% | 10.56% | 9.74% |
December 31, 2023 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $6,954,000K ÷ $33,723,290K
= 20.62%
To analyze the operating profit margin of Netflix Inc., we can observe a consistent trend over the past eight quarters. The operating profit margin has experienced slight fluctuations, ranging from a high of 20.62% in December 2023 to a low of 16.85% in March 2023. This indicates that Netflix has been able to maintain a relatively healthy level of profitability in relation to its operating income, with variations likely attributed to changes in operating expenses and revenue.
Overall, the operating profit margin demonstrates Netflix's ability to efficiently manage its operating costs and generate profits from its core business activities. The downward trend from December 2022 to March 2023 suggests some challenges in maintaining profitability, which could be related to factors such as content production costs, marketing expenses, or competitive pressures. However, the subsequent increase in the operating profit margin from March 2023 to December 2023 indicates a potential improvement in the effectiveness of cost management and revenue generation.
Netflix's consistent focus on optimizing its operating efficiency and controlling costs appears to be reflected in the varying but overall favorable operating profit margins observed throughout the given period. This trend demonstrates the company's commitment to maintaining a healthy level of profitability in its operations.