netrashetty
Netra Shetty
Netflix, Inc., commonly just Netflix, (NASDAQ: NFLX) is an American corporation that offers both on-demand video streaming over the internet, and flat rate online video rental (rental-by-mail) of DVD-Video and Blu-ray Disc in the United States[4] and Canada (streaming only).[5]
The company was established in 1997 and is headquartered in Los Gatos, California. It started its subscription service in 1999.[6] In 2009 it was offering a collection of 100,000 titles on DVD and surpassing 10 million subscribers.[6] On February 25, 2007, Netflix announced the billionth DVD delivery.[7]
Latest Full Context Quarter Ending Date
2010/09
Gross Profit Margin
53.5%
EBIT Margin
13.1%
EBITDA Margin
27.8%
Pre-Tax Profit Margin
12.2%
Interest Coverage
13.7
Current Ratio
1.6
Quick Ratio
0.8
Leverage Ratio
4.0
Inventory Turnover
10.9
Asset Turnover
3.2
Revenue to Assets
2.6
ROE from Total Operations
75.4%
Return on Invested Capital
33.9%
Return on Assets
18.8%
Debt/Common Equity Ratio
1.22
Price/Book Ratio (Price/Equity)
59.91
Book Value per Share
$3.67
Total Debt/ Equity
1.23
Long-Term Debt to Total Capital
0.55
SG&A as % of Revenue
18.2%
R&D as % of Revenue
7.5%
Receivables per Day Sales
$0.00
Days CGS in Inventory
33
Working Capital per Share
$3.45
Cash per Share
$2.16
Cash Flow per Share
$8.63
Free Cash Flow per Share
$-0.49
Tangible Book Value per Share
$1.38
Price/Cash Flow Ratio
25.5
Price/Free Cash Flow Ratio
-450.4
Price/Tangible Book Ratio
159.89
Most recent data
5-Year Averages
Return on Equity
22.1%
Return on Assets
12.2%
Return on Invested Capital
18.9%
Gross Profit Margin
51.4%
Pre-Tax Profit Margin
8.9%
Post-Tax Profit Margin
6.0%
Net Profit Margin (Total Operations)
6.4%
R&D as a % of Sales
6.0%
SG&A as a % of Sales
21.2%
Debt/Equity Ratio
0.17
Total Debt/Equity Ratio
0.17
Income Statement
Operating Revenue (Revenue/Sales) 595,922 553,219 519,819 493,665
Total Revenues 595,922 553,219 519,819 493,665
Cost of Sales 285,194 258,305 240,109 233,679
Cost of Sales with Depreciation 390,790 344,469 314,934 307,162
Gross Margin 310,728 294,914 279,710 259,986
Gross Operating Profit 310,728 294,914 279,710 259,986
Research & Development Expense 45,959 42,108 37,863 37,399
Selling, Gen. & Administrative Expense 81,957 98,373 91,652 92,412
Operating Income 78,453 69,501 77,342 58,345
Operating Income b/f Depreciation (EBITDA) 182,812 154,433 150,195 130,175
Depreciation 105,596 86,164 74,825 73,483
Operating Income After Depreciation 77,216 68,269 75,370 56,692
Interest Income 938 853 921 972
Other Income, Net 1,237 1,232 1,972 1,653
All numbers in thousands
Total Income Avail for Interest Expense (EBIT) 79,391 70,354 78,263 59,317
Interest Expense 4,832 4,945 4,893 4,959
Pre-tax Income (EBT) 74,559 65,409 73,370 54,358
Income Taxes 27,464 27,442 29,851 22,086
Income before Income Taxes 74,559 65,409 73,370 54,358
Net Income from Continuing Operations 47,095 37,967 43,519 32,272
Net Income from Total Operations 47,095 37,967 43,519 32,272
Total Net Income 47,095 37,967 43,519 32,272
Normalized Income * 37,967 43,519 32,272
Net Income Available for Common * 37,967 43,519 32,272
Income Statement - Year-to-Date
Revenues Year-to-Date 2,162,625 1,566,703 1,013,484 493,665
Income Year-to-Date fr. Total Ops. 160,853 113,758 75,791 32,272
* = Data not available
The company operates through 55 distribution centers through out US delivering, to its members, DVDs free of cost through first class mail, with a postage-paid return envelope.
This report presents an in-depth business, strategic and financial analysis of Netflix, Inc.. The report provides a comprehensive insight into the company, including business structure and operations, executive biographies and key competitors. The hallmark of the report is the detailed strategic analysis on the company.
Scope
• The company’s strengths and weaknesses and areas of development or decline are analyzed. Financial, strategic and operational factors are considered.
• The opportunities open to the company are considered and its growth potential assessed. Competitive or technological threats are highlighted.
• The report contains critical company information – business structure and operations, the company history, major products and services, key competitors, key employees and executive biographies, different locations and important subsidiaries.
• It provides detailed financial ratios for the past five years as well as interim ratios for the last four quarters.
• Financial ratios include profitability, margins and returns, liquidity and leverage, financial position and efficiency ratios.
Netflix, Inc. is currently rated as having Average Accounting & Governance Risk (AGR). This places them in the 60th percentile among all companies, indicating higher Accounting & Governance Risk (AGR) than 40% of companies.
The forensic risk summary table below highlights materials risks, if any, and lists the most critical business issue for each risk. AGR Impact shows the deductions from a perfect 100 AGR score due to flagged matrics.
RISK AGR® IMPACT TOP ISSUE
Corporate Governance Events 52.0 Consecutive quarters of EPS Growth
High Risk Events 31.0 Share Repurchases
Revenue Recognition 0.0 N/A
Expense Recognition 17.0 Selling G&A Expenses/Operating Expense
Asset-Liability Valuation 0.0 N/A
AGR scores are based on statistical analysis of accounting and governance risk factors. Lower scores indicate heightened corporate integrity risk, indicating an increased likelihood of future class action litigation, material financial restatements or impaired equity performance.
The company was established in 1997 and is headquartered in Los Gatos, California. It started its subscription service in 1999.[6] In 2009 it was offering a collection of 100,000 titles on DVD and surpassing 10 million subscribers.[6] On February 25, 2007, Netflix announced the billionth DVD delivery.[7]
Latest Full Context Quarter Ending Date
2010/09
Gross Profit Margin
53.5%
EBIT Margin
13.1%
EBITDA Margin
27.8%
Pre-Tax Profit Margin
12.2%
Interest Coverage
13.7
Current Ratio
1.6
Quick Ratio
0.8
Leverage Ratio
4.0
Inventory Turnover
10.9
Asset Turnover
3.2
Revenue to Assets
2.6
ROE from Total Operations
75.4%
Return on Invested Capital
33.9%
Return on Assets
18.8%
Debt/Common Equity Ratio
1.22
Price/Book Ratio (Price/Equity)
59.91
Book Value per Share
$3.67
Total Debt/ Equity
1.23
Long-Term Debt to Total Capital
0.55
SG&A as % of Revenue
18.2%
R&D as % of Revenue
7.5%
Receivables per Day Sales
$0.00
Days CGS in Inventory
33
Working Capital per Share
$3.45
Cash per Share
$2.16
Cash Flow per Share
$8.63
Free Cash Flow per Share
$-0.49
Tangible Book Value per Share
$1.38
Price/Cash Flow Ratio
25.5
Price/Free Cash Flow Ratio
-450.4
Price/Tangible Book Ratio
159.89
Most recent data
5-Year Averages
Return on Equity
22.1%
Return on Assets
12.2%
Return on Invested Capital
18.9%
Gross Profit Margin
51.4%
Pre-Tax Profit Margin
8.9%
Post-Tax Profit Margin
6.0%
Net Profit Margin (Total Operations)
6.4%
R&D as a % of Sales
6.0%
SG&A as a % of Sales
21.2%
Debt/Equity Ratio
0.17
Total Debt/Equity Ratio
0.17
Income Statement
Operating Revenue (Revenue/Sales) 595,922 553,219 519,819 493,665
Total Revenues 595,922 553,219 519,819 493,665
Cost of Sales 285,194 258,305 240,109 233,679
Cost of Sales with Depreciation 390,790 344,469 314,934 307,162
Gross Margin 310,728 294,914 279,710 259,986
Gross Operating Profit 310,728 294,914 279,710 259,986
Research & Development Expense 45,959 42,108 37,863 37,399
Selling, Gen. & Administrative Expense 81,957 98,373 91,652 92,412
Operating Income 78,453 69,501 77,342 58,345
Operating Income b/f Depreciation (EBITDA) 182,812 154,433 150,195 130,175
Depreciation 105,596 86,164 74,825 73,483
Operating Income After Depreciation 77,216 68,269 75,370 56,692
Interest Income 938 853 921 972
Other Income, Net 1,237 1,232 1,972 1,653
All numbers in thousands
Total Income Avail for Interest Expense (EBIT) 79,391 70,354 78,263 59,317
Interest Expense 4,832 4,945 4,893 4,959
Pre-tax Income (EBT) 74,559 65,409 73,370 54,358
Income Taxes 27,464 27,442 29,851 22,086
Income before Income Taxes 74,559 65,409 73,370 54,358
Net Income from Continuing Operations 47,095 37,967 43,519 32,272
Net Income from Total Operations 47,095 37,967 43,519 32,272
Total Net Income 47,095 37,967 43,519 32,272
Normalized Income * 37,967 43,519 32,272
Net Income Available for Common * 37,967 43,519 32,272
Income Statement - Year-to-Date
Revenues Year-to-Date 2,162,625 1,566,703 1,013,484 493,665
Income Year-to-Date fr. Total Ops. 160,853 113,758 75,791 32,272
* = Data not available
The company operates through 55 distribution centers through out US delivering, to its members, DVDs free of cost through first class mail, with a postage-paid return envelope.
This report presents an in-depth business, strategic and financial analysis of Netflix, Inc.. The report provides a comprehensive insight into the company, including business structure and operations, executive biographies and key competitors. The hallmark of the report is the detailed strategic analysis on the company.
Scope
• The company’s strengths and weaknesses and areas of development or decline are analyzed. Financial, strategic and operational factors are considered.
• The opportunities open to the company are considered and its growth potential assessed. Competitive or technological threats are highlighted.
• The report contains critical company information – business structure and operations, the company history, major products and services, key competitors, key employees and executive biographies, different locations and important subsidiaries.
• It provides detailed financial ratios for the past five years as well as interim ratios for the last four quarters.
• Financial ratios include profitability, margins and returns, liquidity and leverage, financial position and efficiency ratios.
Netflix, Inc. is currently rated as having Average Accounting & Governance Risk (AGR). This places them in the 60th percentile among all companies, indicating higher Accounting & Governance Risk (AGR) than 40% of companies.
The forensic risk summary table below highlights materials risks, if any, and lists the most critical business issue for each risk. AGR Impact shows the deductions from a perfect 100 AGR score due to flagged matrics.
RISK AGR® IMPACT TOP ISSUE
Corporate Governance Events 52.0 Consecutive quarters of EPS Growth
High Risk Events 31.0 Share Repurchases
Revenue Recognition 0.0 N/A
Expense Recognition 17.0 Selling G&A Expenses/Operating Expense
Asset-Liability Valuation 0.0 N/A
AGR scores are based on statistical analysis of accounting and governance risk factors. Lower scores indicate heightened corporate integrity risk, indicating an increased likelihood of future class action litigation, material financial restatements or impaired equity performance.