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Netflix Profitability Rank

: 9 (As of Jun. 2022)
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Netflix has the Profitability Rank of 9. It has a higher profitability and may stay that way.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

Netflix's Operating Margin % for the quarter that ended in Jun. 2022 was 19.80%. As of today, Netflix's Piotroski F-Score is 6.


Competitive Comparison

For the Entertainment subindustry, Netflix's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank Distribution

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

* The bar in red indicates where Netflix's Profitability Rank falls into.



Netflix Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Netflix has the Profitability Rank of 9. It has a higher profitability and may stay that way.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Netflix's Operating Margin % for the quarter that ended in Jun. 2022 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2022 ) / Revenue (Q: Jun. 2022 )
=1578.283 / 7970.141
=19.80 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Netflix has an F-score of 6 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Good Sign:

Netflix Inc operating margin is expanding. Margin expansion is usually a good sign.

4. Consistency of the profitability

5. Predictability Rank


Netflix Profitability Rank Related Terms

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


Netflix Business Description

Netflix logo
Address
100 Winchester Circle, Los Gatos, CA, USA, 95032
Netflix's primary business is a streaming video on demand service now available in almost every country worldwide except China. 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. In 2011, Netflix introduced DVD-only plans and separated the combined streaming and DVD plans, making it necessary for subscribers who want both to have separate plans.
Executives
Lee Dicus Marian officer: Chief Marketing Officer 526 WEST 111TH STREET APARTMENT 3C NEW YORK NY 10025
Hoag Jay C director 250 MIDDLEFIELD ROAD MENLO PARK CA 94025
Ezama Meabe Sergio officer: Chief Talent Officer 59 HILLSIDE ROAD GREENWICH CT 06830
Masiyiwa Strive director 265 FRANKLIN STREET BOSTON MA 02110
Saint John Bozoma officer: Chief Marketing Officer 9255 SUNSET BLVD 2ND FLOOR LOS ANGELES CA 90069
Neumann Spencer Adam officer: Chief Financial Officer SIERRA INCOME CORPORATION 375 PARK AVE., SUITE 3304 NEW YORK NY 10152
Whetstone Rachel officer: Chief Communications Officer 185 TUSCALOOSA AVENUE ATHERTON CA 94027
Dopfner Mathias director C/O TIME WARNER INC. ONE TIME WARNER CENTER NEW YORK NY 10019
Rice Susan E director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Belmer Rodolphe director 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Neal Jessica officer: Chief Talent Officer 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Friedland Jonathan officer: Chief Communications Officer C/O NETFLIX, INC., 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Wells David B officer: CFO C/O NETFLIX, INC. 100 WINCHESTER CIRCLE LOS GATOS CA 95130
Bennett Kelly officer: Chief Marketing Officer 100 WINCHESTER CIRCLE LOS GATOS CA 95032
Sweeney Anne M director C/O 100 WINCHESTER CIRCLE LOS GATOS CA 95032

Netflix Headlines

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