Netflix Inc (NFLX)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 8,711,630 | 5,407,990 | 4,491,920 | 5,116,230 | 2,761,400 |
| Total assets | US$ in thousands | 53,630,400 | 48,732,000 | 48,594,800 | 44,584,700 | 39,280,400 |
| ROA | 16.24% | 11.10% | 9.24% | 11.48% | 7.03% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $8,711,630K ÷ $53,630,400K
= 16.24%
Netflix Inc's return on assets (ROA) has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. The ROA increased from 7.03% in 2020 to 16.24% in 2024, indicating that the company has been more efficient in generating profit from its assets over time. This improvement suggests that Netflix has been able to effectively utilize its assets to generate earnings for its shareholders. The consistent increase in ROA demonstrates the company's ability to generate a higher return relative to its asset base, which is a positive indicator of Netflix's financial performance and management effectiveness.