This trend underscores the company's growing proficiency in transforming revenue into profit. Furthermore, Netflix's Gross Margin has seen a consistent rise over the past five years. Netflix Inc Operating Margin has increased (75.30%) over the past five years. The Profitability Rank shows Netflix Inc's impressive standing among its peers in generating profit. With a favorable Debt-to-Revenue ratio of 0.53, Netflix Inc's strategic handling of debt solidifies its financial health. With an Altman Z-Score of 5.42, Netflix Inc exhibits a strong defense against financial distress. The Interest Coverage ratio for Netflix Inc stands impressively at 7.37, underscoring its strong capability to cover its interest obligations. In 2022, the company reported sales of $32.13 billion and an operating margin of 17.51%.Īccording to the Financial Strength rating, Netflix Inc's robust balance sheet exhibits resilience against financial volatility, reflecting prudent management of capital structure. The firm primarily generates revenue from subscriptions to its eponymous service. 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. The company's primary business is a streaming video on demand service now available in almost every country worldwide except China. Netflix Inc, with a market cap of $176.1 billion, is the world's largest SVOD platform with over 220 million subscribers globally. With a high growth rank and a strong profitability rank, GuruFocus assigned Netflix Inc the GF Score of 94 out of 100, which signals the highest outperformance potential. Thus, they are weighted differently when calculating the total score. Through backtesting, we know that each of these key aspects has a different impact on the stock price performance. The GF score is calculated using the five key aspects of analysis.

Netflix Inc's GF Score components are as follows:Įach one of these components is ranked and the ranks also have positive correlation with the long term performances of stocks. The GF Score ranges from 0 to 100, with 100 as the highest rank. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021.

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