Hey All,
Thanks for visiting my Netflix Financial Report page. On this page, you will be able to find preliminary information about Netflix's current financial performance as well as some historical track records and trends.
For a more detailed examination of Netflix financial performance, I offer two reports, which are "A Beginner's Guide to Netflix Financial Analysis" and "Netflix Financial Report by Paul Borosky, MBA." Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:
- Summarized income statements for the last 5 years.
- Summarized balance sheets for the last 5 years.
- Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line-by-line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is where I use plain English to explain concepts.
For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Netflix Financial Report". The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...
- Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
- "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
- Overall financial analysis summary for the company.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Sincerely,
Paul, MBA.
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Sample Financial Report


Netflix: Brief Summary
Netflix headquarters is located in Los Gatos, CA. The company competes in the communications services sector—specifically, the entertainment industry. At present, the organization employs approximately 9,400 individuals. Netflix’s main revenue generator is the sale of monthly subscriptions to its movie streaming services. A secondary revenue generator for the firm is the rental of DVDs.
From a financial perspective, Netflix’s market capitalization is about $242 billion as of August 2021. Their beta is .75. This indicates that the company’s stock is slightly less risky as compared to the overall market. Their stock price range for the last 52 weeks has been between $458.60 to $593.29. In the last year, the company has not paid out dividends. This indicates that the firm is still in an expansionary business cycle.
Netflix Financial Report Sources
“Netflix 2020 Company Analysis: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA., and owner of Quality Business Plan. In this book, the author selected Netflix's 2020 10k, 2017 10k annual report, 2016 10k annual report, 2018 10k annual report, and Netflix's 2019 10k annual report as the basis for information gathering.
Section 1: Netflix Income Statement Analyzed
In this section, I walk through a broad definition of what an income statement is and why it is important. From this, I then discuss and define income statement line items, such as revenues, gross profits, etc., in detail. After each line item is defined and discussed, I finally offer a summary analysis of Netflix's important income statement line item trends from 2016 to 2020, in most cases.
Netflix Revenue Growth:
Netflix’s average revenue growth rate over the last five years was approximately 26.4% annually. However, the firm’s growth rate has been continually declining over this five-year period. Specifically, in 2018, the organization’s revenue growth was 35.1%. As of 2021, the firm’s revenue growth was 18.8% from the previous year. This decline indicates that the organization may be entering a more mature phase of its business cycle. From this, continued revenue declines should be expected. From an investor’s perspective, this is a below-average trend.
Analyst Grade: B
Netflix 2021 Summary Income Statement |
|||||
Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
Revenues |
29,697,844 |
24,996,056 | 20,156,447 | 15,794,341 |
11,692,713 |
COGS |
17,332,683 |
15,276,319 | 12,440,213 | 9,967,538 |
7,659,666 |
Gross Profit |
12,365,161 |
9,719,737 | 7,716,234 | 5,826,803 |
4,033,047 |
SG&A |
1,351,621 |
1,076,486 | 914,369 | 630,294 |
431,043 |
Depreciation |
208,412 |
115,710 | 103,579 | 83,157 |
71,911 |
R & D |
2,273,885 |
1,829,600 | 1,545,149 | 1,221,814 |
953,710 |
Other | - | - | - | - | - |
Total Operating Expenses |
3,833,918 |
3,021,796 | 2,563,097 | 1,935,265 |
1,456,664 |
EBIT |
6,194,509 |
4,585,289 | 2,604,254 | 1,605,226 |
838,679 |
Other Income | - | - | - | - | - |
Interest Expense |
765,620 |
767,499 | 626,023 | 420,493 |
238,204 |
EBT |
5,840,103 |
3,199,349 | 2,062,231 | 1,226,458 |
485,321 |
Taxes |
723,875 |
437,954 | 195,315 | 15,216 |
(73,608) |
Net Income |
5,116,228 |
2,761,395 | 1,866,916 | 1,211,242 |
558,929 |
Section 2: Netflix Balance Sheet Analyzed
For Netflix's balance sheet, I again go through each important line item from the balance sheet. In reviewing each line item, I will define Netflix's balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2016 to 2020. Next, I then offer a summary analysis of Netflix’s important balance sheet line items.
Netflix Cash.
Netflix’s cash position was $2.8 billion in 2017. Over the next four years, the organization’s cash position would increase substantially, ending 2021 at $6 billion. As compared to sales, the organization’s cash percentage was 24.1% in 2017. In 2021, the cash, as compared to the sales, dropped to 20.3%. This shows that the firm is holding less cash on hand as compared to the sales over this time span. From an investor’s perspective, this is actually a good trend. This shows that the company is not sitting idle on access cash.
Analyst Grade: A
Netflix 2021 Summary Balance Sheet |
|||||
Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
Cash |
6,027,804 |
8,205,550 | 5,018,437 | 3,794,483 |
2,822,795 |
Short Term Investment | - | - | - | - | - |
Account Receivable | - | - | - | - | - |
Inventory | - | - | - | - | - |
Other | - | - | - | - | - |
Current Assets |
8,069,825 |
9,761,580 | 6,178,504 | 9,694,135 |
7,669,974 |
Net PPE |
1,323,453 |
960,183 | 565,221 | 418,291 |
319,404 |
Goodwill | - | - | - | - | - |
Other | - | - | - | - | - |
Total Assets |
44,584,663 |
39,280,359 | 33,975,712 | 25,974,400 |
19,012,742 |
Accounts Payable |
837,483 |
656,183 | 674,347 | 562,985 |
359,555 |
Accrued Expense |
1,449,351 |
1,102,196 | 843,043 | 477,417 |
315,094 |
Accrued Taxes | - | - | - | - | |
Notes Payable |
699,823 |
499,878 | - | - |
- |
LT Debt - Current | - | - | - | - | - |
Other | - | - | - | - | - |
Total Current Liabilities |
8,488,966 |
7,805,785 | 6,855,696 | 6,487,320 |
7,669,974 |
LT Debt |
14,693,072 |
15,809,095 | 14,759,260 | 10,360,058 |
6,499,432 |
Other | - | - | - | - | - |
Total Liabilities |
28,735,415 |
28,215,119 | 26,393,555 | 20,735,635 |
15,430,786 |
Common Stock |
4,024,561 |
3,447,698 | 2,793,929 | 2,315,988 |
1,871,396 |
Treasury |
824,190 |
- | - | - |
- |
Retained Earnings |
12,689,372 |
7,473,144 | 4,811,749 | 2,942,359 |
1,731,117 |
Other | - | - | - | - | - |
Total Equity |
15,849,248 |
11,065,240 | 7,582,157 | 5,238,765 |
3,581,956 |
Section 3: Netflix Financial Ratios Analyzed
For this section, I have chosen several different financial ratios to review for Netflix from 2016 to 2020. In reviewing each of Netflix’s financial ratios, I first start with defining the financial ratio. Next, I supply the financial formula for calculating the specific ratio. Finally, I offer a brief analysis of Netflix’s Important Financial ratios.
Netflix Current Ratio
Netflix’s current ratio was 1.0 in 2017. In the next several years, the organization’s current ratio would fall slightly to .95. The reduction in the current ratio, especially since the organization generates cash continuously, should be well received by investors. This shows that the firm is able to cover its current liabilities with less cash and other current assets on hand.
Analyst Grade: A
Netflix Total Asset Turnover
Netflix’s total asset turnover was .61 in 2017. Over the next several years, the firm’s total asset turnover would increase slightly to .67. This trend indicates that the firm is doing a slightly better job in using assets under management to generate revenues. However, because of the slow growth in this area, investors should be wary when the organization increases its property, plant, and equipment category at a faster pace as compared to sales. From an investor’s perspective, this trend is above average.
Analyst Grade: B