Does Netflix have bad debt or cash flow problems? (2024)

Does Netflix have bad debt or cash flow problems?

The business is actually burning cash most years, despite the strong profits on its income statement. Netflix borrows money to help fund content, and it currently has a net debt (total debt minus cash) balance of $9.4 billion.

Does Netflix have high debt?

As you can see below, Netflix had US$14.5b of debt, at December 2023, which is about the same as the year before.

Does Netflix have negative cash flow?

Netflix – Its Growth with Negative Cash Flow

Therefore, the cost of creating new content assets increased, taking a toll on Netflix's negative cash flow. Also, Netflix increased its investing activities during that period which further led to negative cash flows.

Is Netflix running in debt?

Total debt on the balance sheet as of December 2023 : $14.54 B. According to Netflix's latest financial reports the company's total debt is $14.54 B. A company's total debt is the sum of all current and non-current debts.

Does Netflix run at a loss?

Video streaming giant Netflix had a total net income of nearly 5.4 billion U.S. dollars in 2023, whilst the company's annual revenue reached around 33.7 billion U.S. dollars.

Is Netflix financially healthy?

Netflix's Earnings Growth And 26% ROE

Additionally, the company's ROE is higher compared to the industry average of 14% which is quite remarkable. As a result, Netflix's exceptional 25% net income growth seen over the past five years, doesn't come as a surprise.

Why was Netflix in debt?

Reed Hastings, Netflix's co-chief executive and co-founder, expected Hollywood would soon catch up in the streaming market, and the company stockpiled content as quickly as possible. To finance the hefty licensing and production costs, it borrowed the money.

Does Netflix have good cash flow?

Netflix annual cash flow from operating activities for 2023 was $7.274B, a 259% increase from 2022. Netflix annual cash flow from operating activities for 2022 was $2.026B, a 416.1% increase from 2021. Netflix annual cash flow from operating activities for 2021 was $0.393B, a 83.82% decline from 2020.

Does Netflix have cash flow?

Netflix annual free cash flow for 2023 was $6.926B, a 327.9% increase from 2022. Netflix annual free cash flow for 2022 was $1.619B, a 1326.39% decline from 2021. Netflix annual free cash flow for 2021 was $-0.132B, a 106.84% decline from 2020.

What is Netflix's cash flow?

Netflix Free Cash Flow (Quarterly): 1.581B for Dec. 31, 2023.

Is Netflix debt free?

According to the last reported balance sheet, Netflix had liabilities of US$8.34b due within 12 months, and liabilities of US$19.1b due beyond 12 months.

What are Netflix weaknesses?

Weaknesses. Content Acquisition Costs: One of the primary weaknesses of Netflix Inc is the high cost associated with content acquisition and production. As the company strives to maintain its competitive edge through original and exclusive content, it faces increasing expenses that impact its profitability.

How is Netflix financially?

Everything you need to know about Netflix earnings

The company posted first-quarter net income of $2.3 billion, or $5.28 a share, compared with net income of $1.31 billion, or $2.88 a share, in the year-before quarter. Revenue climbed 15% to $9.37 billion.

How far in debt is Netflix?

Netflix long term debt for 2023 was $14.143B, a 1.46% decline from 2022. Netflix long term debt for 2022 was $14.353B, a 2.31% decline from 2021. Netflix long term debt for 2021 was $14.693B, a 7.06% decline from 2020.

Why is streaming so unprofitable?

Content is expensive

A streaming service needs a wide variety of quality content to keep its subscribers engaged (and paying). It also needs exclusive content to differentiate itself from competitors. Content, especially exclusive content, is very expensive.

Why is Netflix stock falling?

Netflix slumped as one of the bigger drags on the benchmark S&P index and Nasdaq after the video streaming company's second-quarter revenue view fell short of analysts' expectations while the company also unexpectedly said it would no longer provide subscriber counts.

Is Netflix losing money 2024?

The company reported revenues of $8.83 billion during the quarter, up 12% year over year.

How is Netflix doing financially 2024?

We forecast global ARM to be up year-over-year on a F/X neutral basis in Q2. For the full year 2024, we expect healthy revenue growth of 13% to 15%, based on F/X rates at the end of Q1'24. We now expect FY24 operating margin of 25%, based on F/X rates as of January 1, 2024, up from our prior forecast of 24%.

How is Netflix doing in 2024?

Netflix added 9.3 million subscribers in the first quarter of 2024, it announced on Thursday, outperforming analysts' expectations and solidifying its status as the entertainment industry's dominant streaming company.

Why was Netflix a failure?

Netflix's first failure was due to its resistance to adapting to the shifting market conditions. Netflix realized the need to change its economic model as online streaming became a disruptive force.

Why was Netflix sued?

Netflix Staves Off Shareholder Lawsuit Over Subscriber Losses Tied to Account-Sharing Disclosures. The suit alleged that the streamer was overly optimistic about its business prospects despite it being aware of the impact account-sharing would have on growth.

Which companies have the most debt?

What was Netflix's total cash flow from investing activities?

Netflix cash flow from investing activities for the quarter ending December 31, 2023 was $0.542B, a 126.09% decline year-over-year. Netflix cash flow from investing activities for the twelve months ending December 31, 2023 was $0.242B, a 107.53% decline year-over-year.

Who finances Netflix?

We fund our investments through operating profits and, historically, by raising debt. Given that we are sustainably free cash flow positive, we believe that we no longer have a need to raise external financing to fund our day-to-day operations.

What is the free cash flow margin for Netflix?

That will influence the stock price in the long term more than membership roles. For example, you can see in the table above that its Q1 FCF margin was 22.8% (i.e., $2.137b FCF/$9.37b revenue). That was higher than the Q4 2023 17.9% FCF margin and the prior quarter as well. This is largely due to operating leverage.