Netflix Inc (NFLX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 10,417,600 | 6,954,000 | 5,632,830 | 6,194,510 | 4,585,290 |
| Total assets | US$ in thousands | 53,630,400 | 48,732,000 | 48,594,800 | 44,584,700 | 39,280,400 |
| Operating ROA | 19.42% | 14.27% | 11.59% | 13.89% | 11.67% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $10,417,600K ÷ $53,630,400K
= 19.42%
Based on the provided data, Netflix Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the years.
- On December 31, 2020, Netflix's operating ROA was 11.67%, indicating that the company generated $0.1167 in operating income for every dollar of assets it owned.
- By December 31, 2021, the operating ROA had improved to 13.89%, suggesting an increase in efficiency in utilizing its assets to generate operating income.
- However, in the following year, on December 31, 2022, the operating ROA decreased to 11.59%, indicating a potential decrease in efficiency or profitability.
- On December 31, 2023, Netflix's operating ROA rebounded to 14.27%, surpassing the previous year's performance and reflecting an improvement in asset utilization or profitability.
- By the end of December 31, 2024, Netflix achieved its highest operating ROA of 19.42%, representing a significant increase in efficiency in generating operating income relative to its asset base.
Overall, the fluctuating trend in Netflix's operating ROA suggests varying levels of efficiency in utilizing its assets to generate operating income over the years. Investors and analysts may continue to monitor this ratio to assess the company's operational performance and financial health.