FINANCIAL ANALYSIS OF NETFLIX.

(For the year 2019, 2020)

Netflix was established in 1997, it offers a library of films and television series
through distribution deals as well as its own production, known as Netflix Originals.
Netflix is the biggest and the most popular streaming platform in the world with a
whole host of assets and inventories in its disposal making it the absolute king of
streaming services above other application like Disney+ Hotstar and Amazon prime.
One of their most revolutionary idea was realizing that people would much rather stay
at home and watch movie or series they’d like over going outside and purchasing that
movie, this then turned reality where people can watch using a subscription fee. All of
this generated a lot of money for Netflix and their financial performance over the past
2 years proves it.

Netflix pretty much had growth in all the financial ratios with the significant growth in
their return on equity ratios i.e 0.80.

They also managed to reduce their debt ratio from 77.68% to 64.29% to react the
lowest amount in 2020.

However, The company’s asset will be able to cover its debts that are dur at the end of
year as it current ratio of 2020 is 1.25

All and all Netflix had a financially successful period in the year 2019 and 2020 as
they almost had a positive return in every ratio, and more impressively had constant
growth in almost all ratios.