GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Netflix Inc (NAS:NFLX) » Definitions » Sloan Ratio %
中文

Netflix (NFLX) Sloan Ratio %

: -3.28% (As of Mar. 2024)
View and export this data going back to 2002. Start your Free Trial

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Netflix's Sloan Ratio for the quarter that ended in Mar. 2024 was -3.28%.

As of Mar. 2024, Netflix has a Sloan Ratio of -3.28%, indicating the company is in the safe zone and there is no funny business with accruals.


Netflix Sloan Ratio % Historical Data

The historical data trend for Netflix's Sloan Ratio % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Netflix Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.13 2.14 13.60 9.35 -4.94

Netflix Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Sloan Ratio % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.09 2.88 -0.15 -4.94 -3.28

Competitive Comparison

For the Entertainment subindustry, Netflix's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Netflix Sloan Ratio % Distribution

For the Media - Diversified industry and Communication Services sector, Netflix's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Netflix's Sloan Ratio % falls into.



Netflix Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Netflix's Sloan Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2023 )-Cash Flow from Operations (A: Dec. 2023 )
-Cash Flow from Investing (A: Dec. 2023 ))/Total Assets (A: Dec. 2023 )
=(5407.99-7274.301
-541.751)/48731.992
=-4.94%

Netflix's Sloan Ratio for the quarter that ended in Mar. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Mar. 2024 )
=(6435.079-7308.083
-729.69)/48827.721
=-3.28%

Netflix's Net Income for the trailing twelve months (TTM) ended in Mar. 2024 was 1487.61 (Jun. 2023 ) + 1677.422 (Sep. 2023 ) + 937.838 (Dec. 2023 ) + 2332.209 (Mar. 2024 ) = $6,435 Mil.
Netflix's Cash Flow from Operations for the trailing twelve months (TTM) ended in Mar. 2024 was 1440.232 (Jun. 2023 ) + 1992.315 (Sep. 2023 ) + 1663.014 (Dec. 2023 ) + 2212.522 (Mar. 2024 ) = $7,308 Mil.
Netflix's Cash Flow from Investing for the trailing twelve months (TTM) ended in Mar. 2024 was 97.737 (Jun. 2023 ) + 296.071 (Sep. 2023 ) + 411.596 (Dec. 2023 ) + -75.714 (Mar. 2024 ) = $730 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Netflix  (NAS:NFLX) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Mar. 2024, Netflix has a Sloan Ratio of -3.28%, indicating the company is in the safe zone and there is no funny business with accruals.


Netflix Sloan Ratio % Related Terms

Thank you for viewing the detailed overview of Netflix's Sloan Ratio % provided by GuruFocus.com. Please click on the following links to see related term pages.


Netflix (NFLX) Business Description

Address
121 Albright Way, Los Gatos, CA, USA, 95032
Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with almost 250 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm recently began introducing ad-supported subscription plans, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.
Executives
Reed Hastings director, 10 percent owner, officer: CEO, other: CEO 121 ALBRIGHT WAY, LOS GATOS CA 95032
Ann Mather director
Gregory K Peters officer: Intl. Development Officer C/O NETFLIX, INC., 121 ALBRIGHT WAY, LOS GATOS CA 95032
Richard N Barton director C/O IAC, 152 WEST 57TH STREET, NEW YORK NY 10019
David A Hyman officer: General Counsel C/O NETFLIX, INC., 121 ALBRIGHT WAY, LOS GATOS CA 95032
Theodore A Sarandos officer: Chief Content Officer C/O NETFLIX, INC, 121 ALBRIGHT WAY, LOS GATOS CA 95032
Jay C Hoag director 250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Timothy M Haley director 3000 SAND HILL ROAD, 2-290, MENLO PARK CA 94025
Jeffrey William Karbowski officer: Chief Accounting Officer 121 ALBRIGHT WAY, LOS GATOS CA 95032
Kenneth A Barker officer: Chief Accounting Officer C/O ELECTRONIC ARTS INC., 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065
Dicus Marian Lee officer: Chief Marketing Officer 526 WEST 111TH STREET, APARTMENT 3C, NEW YORK NY 10025
Meabe Sergio Ezama officer: Chief Talent Officer 59 HILLSIDE ROAD, GREENWICH CT 06830
Jessica Neal officer: Chief Talent Officer 100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Strive Masiyiwa director 265 FRANKLIN STREET, BOSTON MA 02110
John Bozoma Saint officer: Chief Marketing Officer 9255 SUNSET BLVD 2ND FLOOR, LOS ANGELES CA 90069