Netflix Financial Analysis Essay
To, Mr. Wilmot R. Hastings,
Chairman, President & Chief Executive Officer,
NETFLIX Inc.
This Report presents a complete analysis of the financial status of Netflix Inc. for the shareholders and other important institutions providing an in depth analysis of the business climate outlook as it might impact this company and its industry as well as the corporate analysis for the company. The financial health report, Stocks valuation report, Human Strategic Management analysis and past and future developments will help to understand the company thoroughly in order to take decisions regarding the stock developments . As the Business consultant for Netflix Inc., we provide major insights of the company and review the business completely for the investors to look upon. The financial data was gathered for the last 5 years, from 2009-2014, …show more content…
We see a rapid decline in this ratio since 2011 to 2013, determining lot of investment activities. But 2014 brought in more liquid cash as returns and is expected to keep increasing. This shows Netflix 's ability to be Financially productive . Industryaverage=252.54%
This ratio analysis what portion of its debt or equity is Netflix Inc., using to finance its activities. 0.81 in 2010 shows a high debt/equity ratio indicating the company 's aggressiveness to finance through debt. But in later years, the value of ratio reduces, determining that Netflix has been able to finance through equity and other sources lately keeping the financial status of the company firm and showing no signs towards bankruptcy or losses. The company must have a low Debt/Equity ratio, which indicates a strong balance sheet. The Debt/Equity ratio should not be greater than 20% or should be less than the average Debt/Equity for its industry whish is 252.54%. NFLX 's Total Debt/Equity of 48.45% is considered acceptable
Chairman, President & Chief Executive Officer,
NETFLIX Inc.
This Report presents a complete analysis of the financial status of Netflix Inc. for the shareholders and other important institutions providing an in depth analysis of the business climate outlook as it might impact this company and its industry as well as the corporate analysis for the company. The financial health report, Stocks valuation report, Human Strategic Management analysis and past and future developments will help to understand the company thoroughly in order to take decisions regarding the stock developments . As the Business consultant for Netflix Inc., we provide major insights of the company and review the business completely for the investors to look upon. The financial data was gathered for the last 5 years, from 2009-2014, …show more content…
We see a rapid decline in this ratio since 2011 to 2013, determining lot of investment activities. But 2014 brought in more liquid cash as returns and is expected to keep increasing. This shows Netflix 's ability to be Financially productive . Industryaverage=252.54%
This ratio analysis what portion of its debt or equity is Netflix Inc., using to finance its activities. 0.81 in 2010 shows a high debt/equity ratio indicating the company 's aggressiveness to finance through debt. But in later years, the value of ratio reduces, determining that Netflix has been able to finance through equity and other sources lately keeping the financial status of the company firm and showing no signs towards bankruptcy or losses. The company must have a low Debt/Equity ratio, which indicates a strong balance sheet. The Debt/Equity ratio should not be greater than 20% or should be less than the average Debt/Equity for its industry whish is 252.54%. NFLX 's Total Debt/Equity of 48.45% is considered acceptable