Netflix Inc (NFLX)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 8,711,640 | 7,780,868 | 7,094,778 | 6,435,078 | 5,407,988 | 4,525,434 | 4,246,254 | 4,199,594 | 4,491,924 | 5,044,069 | 5,094,899 | 5,006,959 | 5,116,229 | 5,050,956 | 4,391,862 | 3,759,048 | 2,761,395 | 2,806,209 | 2,681,477 | 2,231,931 |
| Total assets | US$ in thousands | 53,630,400 | 52,281,800 | 49,098,900 | 48,827,700 | 48,732,000 | 49,501,800 | 50,817,500 | 49,490,300 | 48,594,800 | 47,562,200 | 46,350,900 | 45,330,900 | 44,584,700 | 42,739,900 | 40,971,000 | 40,123,000 | 39,280,400 | 38,622,500 | 37,175,300 | 35,059,900 |
| 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% |
December 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $8,711,640K ÷ $53,630,400K
= 16.24%
Netflix Inc's return on assets (ROA) has shown a positive trend over the past few years, indicating improved efficiency in generating profits from its assets. The ROA has increased steadily from 6.37% as of March 31, 2020, reaching a peak of 16.24% by December 31, 2024. This signifies that Netflix has been able to effectively utilize its assets to generate earnings for shareholders.
There were fluctuations in the ROA during this period, with some slight dips and peaks along the way. However, the overall trend has been upward, showcasing the company's ability to generate higher returns relative to its asset base. Investors typically view a rising ROA positively, as it signals improved profitability and asset utilization by the company.
The recent ROA figures of 13.18% as of March 31, 2024, 14.45% as of June 30, 2024, and 16.24% as of December 31, 2024, indicate that Netflix has been able to efficiently leverage its assets to generate higher profits, which can enhance shareholder value. This positive trend in ROA reflects well on Netflix's management and its ability to drive profitability through effective asset management strategies.