Netflix (NEOE:NFLX) Net Margin %

: 10.62% (As of Dec. 2023)

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Net margin is calculated as Net Income divided by its Revenue. Netflix's Net Income for the three months ended in Dec. 2023 was C$1,258 Mil. Netflix's Revenue for the three months ended in Dec. 2023 was C$11,850 Mil. Therefore, Netflix's net margin for the quarter that ended in Dec. 2023 was 10.62%.

The historical rank and industry rank for Netflix's Net Margin % or its related term are showing as below:

NEOE:NFLX' s Net Margin % Range Over the Past 10 Years
Min: 1.81 Med: 8.47 Max: 17.23
Current: 16.04

NEOE:NFLX's Net Margin % is ranked better than
88.54% of 1038 companies
in the Media - Diversified industry
Industry Median: 1.48 vs NEOE:NFLX: 16.04

Netflix Net Margin % Historical Data

The historical data trend for Netflix's Net Margin % 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

Net Margin %

9.26

11.05

17.23

14.21

16.04

Netflix Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Net Margin %																0.70	15.99	18.17	19.64	10.62

Competitive Comparison

For the Entertainment subindustry, Netflix's Net Margin %, along with its competitors' market caps and Net Margin % 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 Net Margin % Distribution

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

* The bar in red indicates where Netflix's Net Margin % falls into.

Netflix Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

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

Net Margin	=	Net Income (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	7255.359	/	45243.175
	=	16.04 %

Netflix's Net Margin for the quarter that ended in Dec. 2023 is calculated as

Net Margin	=	Net Income (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1258.203	/	11850.118
	=	10.62 %

Netflix (NEOE:NFLX) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.

Netflix Net Margin % Related Terms

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

Netflix (NEOE:NFLX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Netflix Inc (NEOE:NFLX) » Definitions » Net Margin %

Comparable Companies

Traded in Other Exchanges

NFLX:USA NFLX:Peru NFLX:Mexico NFLX:Italy NFCd:UK 0QYI:UK NFC:Germany NFLX34:Brazil NFLX:Austria NFLX:Argentina

Address

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

Website

https://www.netflix.com

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.