Netflix Inc (NFLX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 48,732,000 | 48,594,800 | 44,584,700 | 39,280,400 | 33,975,700 |
| Operating ROA | 14.27% | 11.59% | 13.89% | 11.67% | 7.67% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $6,954,000K ÷ $48,732,000K
= 14.27%
To analyze Netflix Inc.'s operating return on assets (operating ROA), we can observe the trend in the ratio over the past five years. The operating ROA indicates the company's ability to generate operating income from its assets.
From 2019 to 2023, Netflix's operating ROA has shown a positive trend, with values of 7.67%, 11.67%, 13.89%, 11.59%, and 14.27%, respectively. This indicates an improvement in the company's ability to generate operating income from its assets over the period.
The increasing trend suggests that Netflix has been effectively utilizing its assets to generate operating income. This could be attributed to factors such as effective cost management, strategic asset utilization, and potentially increasing operating income.
Overall, the trend in Netflix's operating ROA reflects positively on the company's operational efficiency and indicates a strengthening ability to generate operating income from its assets over the past five years.