Netflix Inc (NFLX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 24,743,600 | 22,720,700 | 22,112,700 | 21,365,400 | 20,588,300 | 22,107,600 | 22,832,200 | 21,828,200 | 20,777,400 | 20,528,100 | 19,076,000 | 17,544,000 | 15,849,200 | 15,314,600 | 13,863,900 | 12,884,100 | 11,065,200 | 10,333,300 | 9,334,750 | 8,409,290 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $8,711,640K ÷ $24,743,600K
= 35.21%
Netflix Inc's return on equity (ROE) has shown fluctuations over the past few years. The ROE increased from 26.54% as of March 31, 2020, to a peak of 35.21% as of December 31, 2024. The ROE trend indicates an overall positive performance, with a general upward trajectory, despite some intermittent decreases.
It's noteworthy that the ROE experienced a significant growth phase from March 31, 2021, to December 31, 2024, steadily increasing from 29.18% to 35.21%. This demonstrates that Netflix's profitability relative to shareholders' equity improved during this period, reflecting efficient management of assets to generate profits.
However, there was a decline in ROE from March 31, 2022, to June 30, 2023, reaching a low of 18.60% before rebounding. This downturn may indicate challenges in utilizing equity effectively to generate returns during that period.
Overall, Netflix's ROE has displayed positive trends and improvements, reflecting the company's ability to generate profits from shareholders' equity. The upward trajectory suggests that the company is efficiently utilizing its resources to drive returns for its investors.