Access Millions of academic & study documents

20200319192702summary Of Netflix Financial Finding

Content type
User Generated
Subject
Business
School
Abraham Lincoln University
Type
Homework
Showing Page:
1/3
Running head: NETFLIX FINANCIAL ANALYSIS 1
Summary of Netflix Financial Findings
Student’s Name
Institutional Affiliation

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/3
NETFLIX FINANCIAL ANALYSIS 2
Summary of Netflix Financial Findings
The historical and current challenges of Netflix Inc is that the company is a danger
zone. Its main problem is it gets involved in using a lot of finance to acquire new subscribers.
According to Harvey (2020) the company used a total of over $ 408 to purchase new
subscribers in 2019; meanwhile, revenue and subscriber growth are slowing. For Netflix
investors, there are a number of key challenges the company is facing that include rising cost
of content, difficulty in maintaining new subscriber growth, increasing competition, and
fluctuating prices in stock market.
In the final or fourth quarter of the fiscal year 2019, Netflix recorded a gross profit
margin that increased when compared to the same period in the previous fiscal year. Besides,
the net income and sales of the company grew significantly in the fourth quarter of 2019 as
compared to the same quarter in 2018. Moreover, Netflix was able to outpace it, average
competitors, when the net income of the other companies in the subsector are compared.
Besides, Netflix Inc. has weak liquidity, as indicated by cash inflow statements. The current
liquidity ratio of the company, as noted in the financial report, suggests that the company
operates with a ratio of 0.87. This liquidity ration indicates that Netflix cannot cover its short-
term cash needs. However, the liquidity ratio fiscal year 2019 fourth quarter shows
improvement as the previous year.
In general, the company recorded a net worth or stakeholder equity increased
significantly by 44.7% as compared by the same quarter in 2018 (Harvey 2020). However,
the liquidity ratio indicates that Netflix is in a position that could place it in a situation of
facing financial difficulties shortly. The balance sheet of the company suggests that the
company is in a financially stable position because what it owns (Assets) is more than what it
owes (liabilities) in the fiscal year ending 2019, the total company assets and total liabilities

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/3

Sign up to view the full document!

lock_open Sign Up
Unformatted Attachment Preview
Running head: NETFLIX FINANCIAL ANALYSIS Summary of Netflix Financial Findings Student’s Name Institutional Affiliation 1 NETFLIX FINANCIAL ANALYSIS 2 Summary of Netflix Financial Findings The historical and current challenges of Netflix Inc is that the company is a danger zone. Its main problem is it gets involved in using a lot of finance to acquire new subscribers. According to Harvey (2020) the company used a total of over $ 408 to purchase new subscribers in 2019; meanwhile, revenue and subscriber growth are slowing. For Netflix investors, there are a number of key challenges the company is facing that include rising cost of content, difficulty in maintaining new subscriber growth, increasing competition, and fluctuating prices in stock market. In the final or fourth quarter of the fiscal year 2019, Netflix recorded a gross profit margin that increased when compared to the s ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Studypool
4.7
Indeed
4.5
Sitejabber
4.4

Similar Documents