Netflix Inc (NFLX)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 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 | 7,582,160 | 6,861,500 | 6,105,550 | 5,703,060 |
| ROE | 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% | 24.62% | 20.61% | 18.86% | 22.18% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $5,407,988K ÷ $20,588,300K
= 26.27%
To analyze Netflix Inc.'s return on equity (ROE), which measures the company's ability to generate profits from shareholders' equity, we can observe the trend in ROE over time.
In the last eight quarters, Netflix's ROE ranged from 18.60% to 28.54%. The trend indicates that ROE experienced a slight decline in the most recent quarter at 26.27%, compared to 28.54% in the prior quarter. Although the ROE has fluctuated, it generally remained above 20% throughout the periods, reflecting the company's efficiency in utilizing shareholders' equity to generate profits.
However, a decrease in ROE might signal a decline in the company's profitability in relation to its equity base. It would be beneficial to further analyze the company's financial performance and capital structure to understand the factors contributing to the changes in ROE over the periods.