Chat with us, powered by LiveChat This is a financial health analysis about Netflix and its financial statements of the last 5 years. Write a minimum of four (4) pages of high quality well-writt | EssayAbode

This is a financial health analysis about Netflix and its financial statements of the last 5 years. Write a minimum of four (4) pages of high quality well-writt

 

Question

This is a financial health analysis about Netflix and its financial statements of the last 5 years. Write a minimum of four (4) pages of high quality well-written APA formatted standard.

1. Start by briefly providing some high-level comments on Netflix’s financial statements for the last five years.

2. Use the various ratio analysis already calculated in the (excel file attached) and other forms of analyses like trend analysis to identify 2-3 financial opportunities or challenges.

3. Investigate a couple of news and press releases focused on the organization to better understand the underlying factors influencing those issues.

Instructions:

-4 pages minimum with double spacing

-Font: Times New Roman, Size 12

-At least six (6) peer-reviewed sources (include DOI in reference page) (Use them to define terms/concepts)

-In-text citations

-No plagiarism (IMPORTANT)

Ratios Analysis

Liquidity and Efficiency 2021 2020 2019 2018 2017
Current Ratio Current Assets/Current Liabilities 0.95 1.25 0.90 1.49 1.40 ability to pay current liabilities.
Acid-Test Radio Cash+ST Investments-Current Receivables/Current Liabilities 0.62 0.97 0.56 0.47 0.42 excludes inventory and prepaid expenses (2021&2020) (referred to as its liquidity)
Accounts Receivable Turnover Net sales/Average Acc Receivable Net
Inventory Turnover COGS/Average Inventory
Days' Sales Uncollected Acc Reveivable Net/Net Sales x 365
Days' Sales in Inventory Ending Inventory/COGS x 365
Total Assets Turnover Net Sales/Average Total Assets 0.67 0.64 0.59 0.61 0.61
Solvency (Ana)
Debt Ratio Total Liabilities/Total Assets 0.64 0.72 0.78 0.80 0.81
Equity Ratio Total Equity/Total Assets 0.36 0.28 0.22 0.20 0.19
Debt-to-Equity Ratio Total Liabilities/ Total Equity 1.81 2.55 3.48 3.96 4.31
Times Interest Earned Income before Interest Expense & Income Taxes/Interest Expense -8.09 -5.97 -4.16 -3.82 -3.52
Profitability
Profit Margin Ratio Net Income/Net Sales 0.17 0.11 0.09 0.08 0.05
Gross Margin Ratio Net Sales-COGS/Net Sales 0.42 0.39 0.38 0.37 0.31
Return on Total Assets Net Income/Average Total Assets 0.11 0.07 0.05 0.05 0.03
Return on Stockholders' Equity Net Income/Stockholder's Equity 0.32 0.25 0.25 0.24 0.16
Book Value per Common Share Shareholders Equity to Common Shares/Average shares outstanding 35.76 25.10 17.32 12.03 8.29
Basic Earning per Share Net Income-Preferred Dividends/Weights Average Common Shares Outstanding $11.55 $6.26 $4.26 $2.78 $1.29
Market Prospects (Ana)
Price-Earnings Ratio Share Price/Earning per Share 51.15 79.16 66.19 130.45 140.83 P/E Ratio in the entertainment/production industry is very volatile therefore, the big changes during the past 5 years.
Dividend Yield Annual Cash dividends per Share/Market Price per Share n/a n/a n/a n/a n/a Netflix has never paid or declared any cash dividends on their capital stock
https://s22.q4cdn.com/959853165/files/doc_financials/2021/q4/da27d24b-9358-4b5c-a424-6da061d91836.pdf

https://s22.q4cdn.com/959853165/files/doc_financials/2021/q4/da27d24b-9358-4b5c-a424-6da061d91836.pdf

P&L

NETFLIX, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
2021 2020 2019 2018 2017
Revenues $29,697,844 $24,996,056 $20,156,447 $15,794,341 $11,692,713
Cost of revenues $17,332,683 $15,276,319 $12,440,213 $9,967,538 $8,033,000
Marketing $2,545,146 $2,228,362 $2,652,462 $2,369,469 $1,436,281
Technology and development $2,273,885 $1,829,600 $1,545,149 $1,221,814 $953,710
General and administrative $1,351,621 $1,076,486 $914,369 $630,294 $431,043
Operating income $6,194,509 $4,585,289 $2,604,254 $1,605,226 $838,679
Other income (expense):
Interest expense -$765,620 -$767,499 -$626,023 -$420,493 -$238,204
Interest and other income (expense) $411,214 -$618,441 $84,000 $41,725 -$115,154
Income before income taxes $5,840,103 $3,199,349 $2,062,231 $1,226,458 $485,321
Provision for (benefit from) income taxes -$723,875 -$437,954 -$195,315 $15,216 $73,608
Net income $5,116,228 $2,761,395 $1,866,916 $1,241,674 $558,929
Earnings per share:
Basic $11.55 $6.26 $4.26 $2.78 $1.29
Diluted $11.24 $6.08 $4.13 $2.68 $1.25
Weighted-average common shares outstanding: 443,155 440,922 437,799 435,374 431,885
Weighted-average number of shares 455,372 454,208 451,765 451,000 447,000
Average Share Price 590.80 495.55 281.95 362.64 181.67

Balance Sheet

NETFLIX, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
As of December 31,
2021 2020 2019 2018 2017
Assets
Current assets:
Cash and cash equivalents 6,027,804 8,205,550 5,018,437 3,794,483 2,822,795
Current content assets, net 0 5,151,186 4,310,934
Other current assets 2,042,021 1,556,030 1,160,067 748,466 536,245
Total current assets 8,069,825 9,761,580 6,178,504 9,694,135 7,669,974
Content assets, net 30,919,539 25,383,950 24,504,567 14,951,141 10,371,055
Property and equipment, net 1,323,453 960,183 565,221 418,281 319,404
Other non-current assets 4,271,846 3,174,646 2,727,420 910,843 652,309
Total assets 44,584,663 39,280,359 33,975,712 25,974,400 19,012,742
Liabilities and Stockholders’ Equity
Current liabilities:
Current content liabilities 4,292,967 4,429,536 4,413,561 4,681,562 4,173,041
Accounts payable 837,483 656,183 674,347 562,985 359,555
Accrued expenses and other liabilities 1,449,351 1,102,196 843,043 481,874 315,094
Deferred revenue 1,209,342 1,117,992 924,745 760,899 618,622
Short-term debt 699,823 499,878
Total current liabilities 8,488,966 7,805,785 6,855,696 6,487,320 5,466,312
Non-current content liabilities 3,094,213 2,618,084 3,334,323 3,759,026 3,329,796
Long-term debt 14,693,072 15,809,095 14,759,260 10,360,058 6,499,432
Other non-current liabilities 2,459,164 1,982,155 1,444,276 129,231 135,246
Total liabilities 28,735,415 28,215,119 26,393,555 20,735,635 15,430,786
Commitments and contingencies (Note 7)
Stockholders’ equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized at December 31, 2021 and December 31, 2020; no shares issued and outstanding at December 31, 2021 and December 31, 2020
Common stock, 0.001 par value; 4,990,000,000 shares authorized at December 31, 2021 and December 31, 2020; 443,963,107 and 442,895,261 issued and outstanding at December 31, 2021 and December 31, 2020, respectively 4,024,561 3,447,698 2,793,929 2,315,988 1,871,396 Common stock, $0.001 par value; 4,990,000,000 shares authorized at December 31, 2019 and December 31, 2018, respectively; 438,806,649 and 436,598,597 issued and outstanding at December 31, 2019 and December 31, 2018, respectively Common stock, $0.001 par value; 4,990,000,000 shares authorized at December 31, 2018 and December 31, 2017, respectively; 436,598,597 and 433,392,686 issued and outstanding at December 31, 2018 and December 31, 2017, respectively
Treasury stock at cost (1,564,478 shares at December 31, 2021) -824,190 0 0 0
Accumulated other comprehensive income (loss) -40,495 44,398 -23,521 -19,582 -20,557
Retained earnings 12,689,372 7,573,144 4,811,749 2,942,359 1,731,117
Total stockholders’ equity 15,849,248 11,065,240 7,582,157 5,238,765 3,581,956
Total liabilities and stockholders’ equity 44,584,663 39,280,359 33,975,712 25,974,400 19,012,742
0 0 0 0 0
Other Current Assets 2021 2020 Not available
Trades Receivables 804,320 610,819
Prepaid Expenses 323,818 203042
Other 913,883 742,169
Total other current assets 2,042,021 1,556,030

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