Netflix Financial Statement Analysis : Netflix Essay

916 Words Jun 4th, 2015 4 Pages
Netflix Financial Statement Analysis

The online video streaming media has been in demand. But the most popular and shown to be on top of its competitors is Netflix. The company’s financial statement will be explained on how much of their success has increased in the past few years. Every company would like to expand their business and aim to be the best and the most successful they can be. But, being successful also includes taking risks. For example, taking a loan from a creditor. If a company is credit worthy, a company will be approved for a loan. That’s not all. A creditor also looks at their savings, investments and assets that can be used to repay them. This is first financial statement I will be explaining. An acceptable current ratio varies from different industry and normally the ratio is between (1.5 to 3) to be considered a healthy business. In 2013, Netflix’s total current assets were $3,058,763 and total current liabilities of $2,154,203. A current ratio is calculated by dividing the total current assets by the total current liabilities. And it gave a current ratio of 1.42. In 2014, their current assets were $3,940,469 and their current liabilities were $2,663,154. As you might have noticed, their current assets and liabilities increased in a year. And so did their current ratio of 1.48, which is closer to 1.5. Our company’s current liability is still less than the current assets, but still higher than the 1.0 threshold. And since it’s not below the…

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