Netflix Inc (NFLX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 46.06% | 45.25% | 43.84% | 43.06% | 41.54% | 39.49% | 38.77% | 38.30% | 39.37% | 39.62% | 40.63% | 41.62% | 41.64% | 43.22% | 42.29% | 41.10% | 38.89% | 38.80% | 38.98% | 38.47% |
| Operating profit margin | 26.71% | 25.65% | 23.82% | 22.54% | 20.62% | 18.35% | 17.51% | 16.85% | 17.82% | 18.16% | 19.13% | 20.41% | 20.86% | 22.76% | 22.03% | 21.17% | 18.34% | 17.17% | 16.59% | 14.50% |
| Pretax margin | 25.55% | 23.89% | 22.55% | 21.04% | 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% |
| Net profit margin | 22.34% | 20.70% | 19.54% | 18.42% | 16.04% | 13.82% | 13.22% | 13.16% | 14.21% | 16.03% | 16.42% | 16.47% | 17.23% | 17.64% | 15.92% | 14.24% | 11.05% | 11.78% | 11.85% | 10.43% |
Based on the data provided, we can analyze the profitability ratios of Netflix Inc over the given time period.
1. Gross Profit Margin:
- Netflix's gross profit margin has fluctuated over the years, ranging from a low of 38.30% in March 2023 to a high of 46.06% in December 2024.
- The trend shows some volatility but an overall upward trajectory in recent quarters, with the gross profit margin improving from 38.47% in March 2020 to 46.06% in December 2024.
2. Operating Profit Margin:
- The operating profit margin of Netflix has also shown variability, with a low of 14.50% in March 2020 and a high of 26.71% in December 2024.
- There is a general increasing trend in the operating profit margin, indicating improved operational efficiency and cost control measures.
3. Pretax Margin:
- Netflix's pretax margin has experienced fluctuations, with a low of 11.49% in March 2020 and a peak of 25.55% in December 2024.
- The pretax margin has generally trended upwards, demonstrating the company's ability to generate more earnings before taxes over time.
4. Net Profit Margin:
- The net profit margin of Netflix has varied, with a low of 10.43% in March 2020 and a high of 22.34% in December 2024.
- There is an overall positive trend in the net profit margin, showcasing Netflix's ability to increase profitability relative to its revenues.
In summary, Netflix has shown improvements in its profitability ratios over the analyzed period, with increasing margins indicating better operational efficiency and financial performance. Investors and stakeholders may view these trends positively as they suggest the company's ability to generate higher profits from its operations.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 16.24% | 14.88% | 14.45% | 13.18% | 11.10% | 9.14% | 8.36% | 8.49% | 9.24% | 10.61% | 10.99% | 11.05% | 11.48% | 11.82% | 10.72% | 9.37% | 7.03% | 7.27% | 7.21% | 6.37% |
| Return on total capital | 27.58% | 26.25% | 25.89% | 23.28% | 19.88% | 16.08% | 14.91% | 15.18% | 16.99% | 18.89% | 19.69% | 20.40% | 21.63% | 21.82% | 20.06% | 18.80% | 14.76% | 13.87% | 15.04% | 13.88% |
| Return on equity (ROE) | 35.21% | 34.25% | 32.08% | 30.12% | 26.27% | 20.47% | 18.60% | 19.24% | 21.62% | 24.57% | 26.71% | 28.54% | 32.28% | 32.98% | 31.68% | 29.18% | 24.96% | 27.16% | 28.73% | 26.54% |
Netflix Inc's profitability ratios show a positive trend over the analyzed periods.
The Operating Return on Assets (Operating ROA) has steadily increased from 8.85% on March 31, 2020, to 19.42% on December 31, 2024. This indicates that Netflix has been able to generate more operating income per dollar of assets over time.
Similarly, the Return on Assets (ROA) has also shown a favorable trend, rising from 6.37% on March 31, 2020, to 16.24% on December 31, 2024. This demonstrates Netflix's efficiency in utilizing its assets to generate profits.
The Return on Total Capital has followed an upward trajectory, starting at 13.88% on March 31, 2020, and reaching 27.58% on December 31, 2024. This indicates Netflix's ability to generate returns for both creditors and equity investors.
Moreover, the Return on Equity (ROE) has consistently increased from 26.54% on March 31, 2020, to 35.21% on December 31, 2024. This shows that Netflix has been effectively utilizing shareholder equity to generate profits.
Overall, Netflix Inc's profitability ratios demonstrate a positive performance and efficient utilization of resources over the analyzed periods, reflecting the company's strong financial health and management effectiveness.