Netflix Inc (NFLX)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,407,990 | 4,491,920 | 5,116,230 | 2,761,400 | 1,866,920 |
| Total assets | US$ in thousands | 48,732,000 | 48,594,800 | 44,584,700 | 39,280,400 | 33,975,700 |
| ROA | 11.10% | 9.24% | 11.48% | 7.03% | 5.49% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $5,407,990K ÷ $48,732,000K
= 11.10%
The return on assets (ROA) measures Netflix Inc.'s efficiency in generating profits from its assets. In 2023, the ROA increased to 11.10% from 9.24% in 2022, indicating improved asset utilization and profitability. This suggests that the company generated $11.10 in profit for every $100 of assets in 2023, up from $9.24 in 2022. The upward trend in ROA from 2019 to 2023 reflects a positive performance in utilizing its assets to generate earnings. The consistent improvement in ROA demonstrates Netflix's ability to generate more profits relative to its asset base, which may be attributed to effective management of its resources and business operations. This trend indicates that Netflix has been successful in leveraging its assets to create value for its shareholders over the years.