Netflix (NAS:NFLX) ROCE %

: 17.80% (As of Jun. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Netflix's annualized ROCE % for the quarter that ended in Jun. 2023 was 17.80%.

Netflix ROCE % Historical Data

The historical data trend for Netflix's ROCE % 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

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

ROCE %

9.97

11.54

15.65

19.55

15.56

Netflix Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
ROCE %																18.82	18.25	2.09	16.76	17.80

Netflix ROCE % Calculation

Netflix's annualized ROCE % for the fiscal year that ended in Dec. 2022 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2022 )		(A: Dec. 2021 )		(A: Dec. 2022 )
	=	5970.141	/	( ( (44584.663 - 8488.966)	+	(48594.768 - 7930.974) )	/ 2 )
	=	5970.141	/	( (36095.697	+	40663.794)	/ 2 )
	=	5970.141	/	38379.7455
	=	15.56 %

Netflix's ROCE % of for the quarter that ended in Jun. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jun. 2023 )		(Q: Mar. 2023 )		(Q: Jun. 2023 )
	=	7416.576	/	( ( (49490.345 - 8316.07)	+	(50817.473 - 8675.805) )	/ 2 )
	=	7416.576	/	( ( 41174.275	+	42141.668 )	/ 2 )
	=	7416.576	/	41657.9715
	=	17.80 %

(1) Note: The EBIT data used here is four times the quarterly (Jun. 2023) EBIT data.

Netflix (NAS:NFLX) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Netflix ROCE % Related Terms

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Netflix (NAS:NFLX) Business Description

Industry

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

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Traded in Other Exchanges

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Address

121 Albright Way, Los Gatos, CA, USA, 95032

Website

https://www.netflix.com

Netflix's primary business is a streaming video on demand service now available in almost every country worldwide except China. The firm primarily generates revenue from subscriptions to its eponymous service. Netflix delivers original and third-party digital video content to PCs, internet-connected TVs, and consumer electronic devices, including tablets, video game consoles, Apple TV, Roku, and Chromecast. Netflix is the largest SVOD platform in the world with over 220 million subscribers globally.

Executives

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
Jay C Hoag	director	250 MIDDLEFIELD ROAD, MENLO PARK CA 94025
Meabe Sergio Ezama	officer: Chief Talent Officer	59 HILLSIDE ROAD, GREENWICH CT 06830
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
Spencer Adam Neumann	officer: Chief Financial Officer	SIERRA INCOME CORPORATION, 375 PARK AVE., SUITE 3304, NEW YORK NY 10152
Rachel Whetstone	officer: Chief Communications Officer	185 TUSCALOOSA AVENUE, ATHERTON CA 94027
Mathias Dopfner	director	C/O TIME WARNER INC., ONE TIME WARNER CENTER, NEW YORK NY 10019
Susan E Rice	director	100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Rodolphe Belmer	director	100 WINCHESTER CIRCLE, LOS GATOS CA 95032
Jessica Neal	officer: Chief Talent Officer	100 WINCHESTER CIRCLE, LOS GATOS CA 95032
David B Wells	officer: CFO	C/O NETFLIX, INC., 100 WINCHESTER CIRCLE, LOS GATOS CA 95130
Jonathan Friedland	officer: Chief Communications Officer	C/O NETFLIX, INC., 100 WINCHESTER CIRCLE, LOS GATOS CA 95032