Financial Statement Analysis of Netflix: Evaluating Profitability, Scribe Growth and Debt Management
- DOI
- 10.2991/978-94-6463-874-5_99How to use a DOI?
- Keywords
- Entertainment Industry; Streaming Service; Operating Margin; Subscriber Growth; Debt to Equity
- Abstract
The entertainment industry, as one of the important industries in the United States, has made contributions in both economic and cultural exports. After entering the digital age, the film and entertainment industry, especially the streaming media service industry, has gradually occupied an important position in the entire industry. However, after the pandemic, the social media industry has developed at an extremely fast pace, posing a threat to the film and entertainment industry. As a leader in streaming media services, Netflix has also inevitably been impacted by the social media industry. Therefore, the purpose of this article is to provide suggestions for Netflix to enable it to maintain its leading position in the highly competitive entertainment industry. This article focuses on analyzing Netflix financial statements by using three indicators which are profitability, subscriber growth and liquidity. According to the evaluation, Netflix is recommended increase its subscriber growth rate especially in Latin American area and Asia-Pacific area by creating more diversity content. Besides, it is recommended that Netflix should change its financial structure, reducing debt-to-equity ratio to reduce its financial risk.
- Copyright
- © 2025 The Author(s)
- Open Access
- Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.
Cite this article
TY - CONF AU - Lingyu Chen PY - 2025 DA - 2025/11/03 TI - Financial Statement Analysis of Netflix: Evaluating Profitability, Scribe Growth and Debt Management BT - Proceedings of the 2025 International Conference on Financial Innovation and Marketing Management (FIMM 2025) PB - Atlantis Press SP - 858 EP - 865 SN - 2352-5428 UR - https://doi.org/10.2991/978-94-6463-874-5_99 DO - 10.2991/978-94-6463-874-5_99 ID - Chen2025 ER -