Netflix Inc (NFLX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 48,732,000 | 49,501,800 | 50,817,500 | 49,490,300 | 48,594,800 | 47,562,200 | 46,350,900 | 45,330,900 | 44,584,700 | 42,739,900 | 40,971,000 | 40,123,000 | 39,280,400 | 38,622,500 | 37,175,300 | 35,059,900 | 33,975,700 | 30,941,700 | 30,171,300 | 27,218,600 |
| Operating ROA | 14.27% | 12.14% | 11.07% | 10.86% | 11.59% | 12.02% | 12.81% | 13.69% | 13.89% | 15.25% | 14.83% | 13.92% | 11.67% | 10.59% | 10.10% | 8.85% | 7.67% | 7.63% | 6.17% | 5.94% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $6,954,000K ÷ $48,732,000K
= 14.27%
To analyze Netflix Inc.'s operating return on assets (operating ROA) over the past eight quarters, we calculate the operating ROA by dividing the operating income by the average total assets. The operating ROA provides insight into the company's efficiency in generating operating income from its assets.
Netflix Inc.'s operating ROA has fluctuated over the past eight quarters, ranging from 10.86% to 14.27%. The trend indicates that the company's ability to generate operating income from its assets has varied. The highest operating ROA of 14.27% was recorded in Dec 31, 2023, while the lowest was 10.86% in Mar 31, 2023.
The decrease in operating ROA from Mar 31, 2023, to Jun 30, 2023, followed by a subsequent increase suggests potential fluctuations in the company's operating efficiency during this period. It's important to analyze the factors contributing to these fluctuations, such as changes in operating income and total assets, to gain a deeper understanding of the company's performance.
Overall, fluctuations in Netflix Inc.'s operating ROA indicate the need for further analysis to understand the underlying drivers and assess the company's operational efficiency in generating income from its assets.