Netflix EBITDA vs. Total Debt

NFLX Stock  USD 607.33  6.20  1.01%   
Based on the key profitability measurements obtained from Netflix's financial statements, Netflix is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in April. Profitability indicators assess Netflix's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
21.5 B
Current Value
22.6 B
Quarterly Volatility
8.1 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
Operating Cash Flow Sales Ratio is likely to rise to 0.23 in 2024, whereas Price To Sales Ratio is likely to drop 3.45 in 2024. At this time, Netflix's Operating Income is fairly stable compared to the past year. Income Before Tax is likely to rise to about 6.5 B in 2024, despite the fact that Accumulated Other Comprehensive Income is likely to grow to (212.7 M).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.40.4154
Sufficiently Down
Slightly volatile
Return On Equity0.250.2627
Notably Down
Pretty Stable
For Netflix profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Netflix to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Netflix utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Netflix's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Netflix over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more information on how to buy Netflix Stock please use our How to Invest in Netflix guide.
Is Netflix's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Netflix. If investors know Netflix will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Netflix listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
16.252
Earnings Share
12.02
Revenue Per Share
76.371
Quarterly Revenue Growth
0.125
Return On Assets
0.0893
The market value of Netflix is measured differently than its book value, which is the value of Netflix that is recorded on the company's balance sheet. Investors also form their own opinion of Netflix's value that differs from its market value or its book value, called intrinsic value, which is Netflix's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Netflix's market value can be influenced by many factors that don't directly affect Netflix's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Netflix's value and its price as these two are different measures arrived at by different means. Investors typically determine if Netflix is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Netflix's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Netflix Total Debt vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Netflix's current stock value. Our valuation model uses many indicators to compare Netflix value to that of its competitors to determine the firm's financial worth.
Netflix is considered to be number one stock in ebitda category among related companies. It is rated top company in total debt category among related companies making up about  0.68  of Total Debt per EBITDA. The ratio of EBITDA to Total Debt for Netflix is roughly  1.48 . At this time, Netflix's EBITDA is fairly stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Netflix by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Netflix's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Netflix's earnings, one of the primary drivers of an investment's value.

Netflix Total Debt vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Netflix

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
21.51 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.

Netflix

Total Debt

 = 

Bonds

+

Notes

 = 
14.54 B
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.

Netflix Total Debt vs Competition

Netflix is rated top company in total debt category among related companies. Total debt of Communication Services industry is now estimated at about 27.12 Billion. Netflix totals roughly 14.54 Billion in total debt claiming about 54% of stocks in Communication Services industry.
Total debt  Capitalization  Valuation  Revenue  Workforce

Netflix Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Netflix, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Netflix will eventually generate negative long term returns. The profitability progress is the general direction of Netflix's change in net profit over the period of time. It can combine multiple indicators of Netflix, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-223.9 M-212.7 M
Operating IncomeB7.3 B
Income Before Tax6.2 B6.5 B
Total Other Income Expense Net-748.6 M-711.2 M
Net Income5.4 B5.7 B
Income Tax Expense-797.4 M-757.5 M
Net Income Applicable To Common Shares5.2 B5.4 B
Net Income From Continuing Ops5.4 B5.7 B
Non Operating Income Net Other387.9 M407.3 M
Interest Income387.9 M353.4 M
Net Interest Income-748.6 M-786 M
Change To Netincome841.7 M883.8 M
Net Income Per E B T 0.87  1.09 

Netflix Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Netflix. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Netflix position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Netflix's important profitability drivers and their relationship over time.

Use Netflix in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Netflix position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Netflix will appreciate offsetting losses from the drop in the long position's value.

Netflix Pair Trading

Netflix Pair Trading Analysis

The ability to find closely correlated positions to Netflix could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Netflix when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Netflix - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Netflix to buy it.
The correlation of Netflix is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Netflix moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Netflix moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Netflix can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Netflix position

In addition to having Netflix in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Tech Funds
Tech Funds Theme
Funds or Etfs that invest in companies involved in research, development, testing, or distribution of technologically based goods and services. The Tech Funds theme has 40 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Tech Funds Theme or any other thematic opportunities.
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When determining whether Netflix offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Netflix's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Netflix Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Netflix Stock:
Check out Correlation Analysis.
For more information on how to buy Netflix Stock please use our How to Invest in Netflix guide.
You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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When running Netflix's price analysis, check to measure Netflix's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Netflix is operating at the current time. Most of Netflix's value examination focuses on studying past and present price action to predict the probability of Netflix's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Netflix's price. Additionally, you may evaluate how the addition of Netflix to your portfolios can decrease your overall portfolio volatility.
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To fully project Netflix's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Netflix at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Netflix's income statement, its balance sheet, and the statement of cash flows.
Potential Netflix investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Netflix investors may work on each financial statement separately, they are all related. The changes in Netflix's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Netflix's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.