Financial Analysis
Veiw tables at Investing Business Week
The financial status of Netflix over a period of 4 years has been increasingly beneficial because the overall increases in profit. When looking at Revenue, which is the total profit made from the entire service without subtracted at of the operating costs, Netflix has had a steady increase of gaining almost a $1B USD every year. From 2010 to 2011, Netflix, Inc. has grown their Revenues from $2.2B USD to $3.2B USD. This proves that Netflix has been doing very well when it comes to receiving growth in the financial area of the past years. Another section to observe was the Net Income, which is the Operating Profit – taxes – interest of the business. Net income can be described as the profit that the company receives which can determine how well the company is doing. Since over a 4 year time span the Net Income has been steadily increasing adding about $50M USD every year since 2008. From 2010 to 2011, the Net Income was $160.9M to $226.1M, which shows that people are steadily becoming more interesting in the company as the years go on and that the business has a positive future in financial profit. Another section to consider is the Long-term Debt Issued, which is the cash inflow on the issuance of long-term debt instruments in a company such as long-term bank borrowings, corporate bonds, convertible bonds, etc. The only time Netflix has issued a Long-term Debt was in both 2009 and 2011 for $212.9M USD and $198.1M USD. This will show that the company needed money
from the bank for some type of support for long periods of time, which brings me to the next term about Total Debt Repaid. The Total Debt Repaid is the negative side of Netflix for it appears that all 4 years the Total Debt Repaid has a common theme of being negative. The amount is $-0.8M, $-21.2M, $-1.8M and $ -2.1M from 2008 to 2011. This occurrence overall means that they owe either the government or banks some money that they have not been able to pay off yet, which can show that Netflix may not take responsibility for some important costs leading to further debt. Lastly, the Total Equity will show how much the company has total with the assets and liability accounted. Since the number of Total Equity is positive, it shows the net worth and how good it is. Furthermore, the Total Equity had gone down in 2009 but afterward the Total equity started to rise rapidly and the Equity was $642.8M US. Therefore, this number tells the customer what Netflix has and owes then subtracts the two to get a total net worth of the company or Total Equity. Overall, Netflix has a strong financial status that proves this company is booming and backing a large profit every year.
from the bank for some type of support for long periods of time, which brings me to the next term about Total Debt Repaid. The Total Debt Repaid is the negative side of Netflix for it appears that all 4 years the Total Debt Repaid has a common theme of being negative. The amount is $-0.8M, $-21.2M, $-1.8M and $ -2.1M from 2008 to 2011. This occurrence overall means that they owe either the government or banks some money that they have not been able to pay off yet, which can show that Netflix may not take responsibility for some important costs leading to further debt. Lastly, the Total Equity will show how much the company has total with the assets and liability accounted. Since the number of Total Equity is positive, it shows the net worth and how good it is. Furthermore, the Total Equity had gone down in 2009 but afterward the Total equity started to rise rapidly and the Equity was $642.8M US. Therefore, this number tells the customer what Netflix has and owes then subtracts the two to get a total net worth of the company or Total Equity. Overall, Netflix has a strong financial status that proves this company is booming and backing a large profit every year.