Netflix Inc (NFLX)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 10,417,620 | 9,640,960 | 8,647,870 | 7,872,210 | 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 |
| Total assets | US$ in thousands | 53,630,400 | 52,281,800 | 49,098,900 | 48,827,700 | 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 |
| Operating ROA | 19.42% | 18.44% | 17.61% | 16.12% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $10,417,620K ÷ $53,630,400K
= 19.42%
Netflix Inc's operating return on assets (operating ROA) has shown a positive trend over the analyzed period from March 31, 2020, to December 31, 2024. The operating ROA increased steadily from 8.85% in March 2020 to a peak of 19.42% in December 2024.
The growth in operating ROA indicates that Netflix has been more efficient in generating operating income from its assets over time. This improvement may suggest effective management of assets and operations, leading to higher profitability.
While there were fluctuations in the operating ROA during the period, the overall trend demonstrates Netflix's ability to generate a higher return on its assets. Investors and stakeholders may view this positively as it indicates the company's operational efficiency and profitability potential.