Netflix Financial Ratios

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SHORT TERM (LIQUIDITY) - quick ratio, current ratio
LONG TERM (PROFITABILITY) - steady growth, return on sales
Netflix is financially viable in the short term, and the company will likely stabilize in the long term. When evaluating the financial health of Netflix over the past five years, it was found that the current ratio is generally increasing, despite a decrease in 2016, showing investors that the company will be financially viable in the future. The quick ratio also shows investors that Having an ideal current ratio is important to the financial status of a company such as Netflix, as is the quick ratio.
Investors should avoid Netflix if they want a slow and steady value company. This is because Netflix is very aggressive in using debt to finance in its …show more content…

The company is successful due to the increase in the number of subscriptions, increasing its global streaming subscriptions from 74.7 million to 93.8 million by the end of the 2016 fiscal year. This fact is also explained by the company generating its own original content with shows such as House of Cards and Orange is the New Black. Netflix has a high customer retention rate due to the reputation that it has gained as a platform subscribers to connect and relax. Netflix subscribers are less likely to cancel their subscriptions than are their counterparts who subscribe to Amazon Prime or Hulu.
Netflix has a unique business model. The company strategy focuses on differentiation. Netflix works to outcompete its competitors through the differentiation of its service. Netflix places customer experience above all else. The company prides itself in knowing that customer experiences is directly related to company financial viability, and with that known, the company works to ensure that each user has a great experience with the Internet streaming service. Netflix is a brand that is focused, not one that simply tries to do everything. By focusing on the entertainment industry, Netflix is able to

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