Netflix Inc (NFLX)
Return on assets (ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 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 | 1,866,916 | 1,413,880 | 1,151,471 | 1,265,170 |
| Total assets | US$ in thousands | 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 | 33,975,700 | 30,941,700 | 30,171,300 | 27,218,600 |
| ROA | 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% | 5.49% | 4.57% | 3.82% | 4.65% |
December 31, 2023 calculation
ROA = Net income (ttm) ÷ Total assets
= $5,407,988K ÷ $48,732,000K
= 11.10%
To analyze Netflix Inc.'s return on assets (ROA), we can compare its ROA over the past eight quarters. ROA is calculated by dividing net income by average total assets and is a measure of how efficiently a company generates profits from its assets.
From the data provided, we observe fluctuations in Netflix's ROA. In the most recent quarter, as of December 31, 2023, the ROA stands at 11.10%, showing an improvement compared to the previous quarter's 9.14%. However, it is essential to consider the trend over time to gain a comprehensive understanding.
Looking at the trend, we notice that Netflix's ROA has experienced some variability over the past eight quarters. The ROA has exhibited a general downward trend, with occasional fluctuations. For instance, it decreased from 11.05% in the first quarter of 2022 to 8.36% in the second quarter of 2023, before rebounding to 11.10% in the most recent period.
This fluctuation could indicate changes in Netflix's profitability and asset utilization over time. A declining trend may suggest challenges in efficiently utilizing assets to generate profits, while an increasing trend may signal improvements in profitability relative to its asset base.
It is important to conduct further analysis to understand the underlying factors driving these fluctuations in Netflix's ROA. Factors such as changes in revenue, expenses, asset management, and operational efficiency could all contribute to the observed trends in ROA.
In conclusion, while the most recent quarter shows an improvement in ROA, the overall trend for Netflix's ROA over the past eight quarters indicates some variability, and it would be beneficial to delve deeper into the company's financial and operational performance to gain a comprehensive understanding of the factors influencing its ROA.