Netflix Inc (NFLX)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 6,205,400 | 5,096,586 | 4,809,386 | 4,753,106 | 5,263,926 | 5,775,443 | 5,814,553 | 5,785,293 | 5,840,103 | 5,795,667 | 4,996,167 | 4,437,977 | 3,199,347 | 2,842,263 | 2,993,123 | 2,458,439 | 2,062,228 | 2,032,291 | 1,398,781 | 1,326,501 |
| Revenue (ttm) | US$ in thousands | 33,723,290 | 32,742,520 | 32,126,440 | 31,909,280 | 31,615,550 | 31,472,820 | 31,030,700 | 30,402,340 | 29,697,850 | 28,632,970 | 27,585,140 | 26,391,650 | 24,996,060 | 23,819,050 | 22,628,310 | 21,403,140 | 20,156,440 | 18,875,850 | 17,630,320 | 16,614,470 |
| Pretax margin | 18.40% | 15.57% | 14.97% | 14.90% | 16.65% | 18.35% | 18.74% | 19.03% | 19.67% | 20.24% | 18.11% | 16.82% | 12.80% | 11.93% | 13.23% | 11.49% | 10.23% | 10.77% | 7.93% | 7.98% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $6,205,400K ÷ $33,723,290K
= 18.40%
To analyze Netflix Inc.'s pretax margin, we can look at the trend in the pretax margin ratio over the past eight quarters. The pretax margin measures the company's efficiency in generating profits before accounting for taxes in relation to its total revenue.
In the most recent quarter, ending December 31, 2023, Netflix Inc. reported a pretax margin of 18.40%, which indicates that the company's ability to generate profits before taxes improved compared to the previous quarter. However, it's important to note that the pretax margin fluctuated over the past eight quarters, with a peak of 19.03% in the first quarter of 2022 and the lowest point at 14.90% in the first quarter of 2023.
This fluctuation may suggest variability in the company's cost management and revenue generation over the quarters. Investors and analysts may want to further investigate the factors contributing to these fluctuations to assess the sustainability and efficiency of Netflix Inc.'s profit generation.