Netflix Inc (NFLX)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 9,965,660 | 6,205,400 | 5,263,930 | 5,840,100 | 3,199,350 |
| Revenue | US$ in thousands | 39,001,000 | 33,723,300 | 31,615,600 | 29,697,800 | 24,996,100 |
| Pretax margin | 25.55% | 18.40% | 16.65% | 19.67% | 12.80% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $9,965,660K ÷ $39,001,000K
= 25.55%
The pretax margin of Netflix Inc has exhibited a generally positive trend over the years, starting at 12.80% on December 31, 2020, and steadily increasing to 25.55% by December 31, 2024. This indicates that the company has been able to effectively manage its operating expenses relative to its revenue, resulting in improved profitability before taxes. The significant improvement in pretax margin from 2020 to 2024 suggests that Netflix has been successful in enhancing its operational efficiency and cost controls, thereby bolstering its bottom line performance. Overall, the rising pretax margin reflects the company's ability to generate stronger profits from its core business operations over the years.