Analyze the cash flow and cash management of Netflix, Inc. A review of return on invested capital and profitability should also be made using a variety of appropriate ratios and horizontal and/or vertical analysis.

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net income	$ 186,678	$ 122,641	$ 266,799
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Additions to streaming content assets	(8,653,286)	(5,771,652)	(3,773,019)
Change in streaming content liabilities	1,772,650	1,162,413	593,125
Amortization of streaming content assets	4,788,498	3,405,382	2,656,279
Amortization of DVD content assets	78,952	79,380	71,491
Depreciation and amortization of property, equipment and intangibles	57,528	62,283	54,028
Stock-based compensation expense	173,675	124,725	115,239
Excess tax benefits from stock-based compensation	(65,121)	(80,471)	(89,341)
Other non-cash items	40,909	31,628	15,282
Deferred taxes	(46,847)	(58,655)	(30,063)
Changes in operating assets and liabilities:
Other current assets	46,970	18,693	(9,198)
Other current assets	32,247	51,615	83,812
Accrued expenses	68,706	48,810	55,636
Deferred revenue	96,751	72,135	58,819
Other non-current assets and liabilities	(52,294)	(18,366)	(52,406)
Net cash (used in) provided by operating activities	(1,473,984)	(749,439)	16,483
Cash flows from investing activities:
Acquisition of DVD content assets	(77,177)	(77,958)	(74,790)
Purchases of property and equipment	(107,653)	(91,248)	(69,726)
Other assets	(941)	(1,912)	1,334
Purchases of short-term investments	(187,193)	(371,915)	(426,934)
Proceeds from sale of short-term investments	282,484	259,079	385,300
Proceeds from maturities of short-term investments	140,245	104,762	141,950
Net cash provided by (used in) investing activities	49,765	(179,192)	(42,866)
Cash flows from financing activities:
Proceeds from issuance of debt	1,000,000	1,500,000	400,000
Issuance costs	(10,700)	(17,629)	(7,080)
Proceeds from issuance of common stock	36,979	77,980	60,544
Excess tax benefits from stock-based compensation	65,121	80,471	89,341
Other financing activities	230	(545)	(1,093)
Net cash provided by financing activities	1,091,630	1,640,277	541,712
Effect of exchange rate changes on cash and cash equivalents	(9,165)	(15,924)	(6,686)
Net (decrease) increase in cash and cash equivalents	(341,754)	695,722	508,643
Cash and cash equivalents, beginning of year	1,809,330	1,113,608	604,965
Cash and cash equivalents, end of year	1,467,576	1,809,330	1,113,608
Supplemental disclosure:
Income taxes paid	26,806	27,658	50,573
Interest paid	138,566	111,761	41,085
Change in investing activities included in liabilities	$ 27,504	$ (4,978)	$ 12,295

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 1,467,576	$ 1,809,330
Short-term investments	266,206	501,385
Current content assets, net	3,726,307	2,905,998
Other current assets	260,202	215,127
Total current assets	5,720,291	5,431,840
Non-current content assets, net	7,274,501	4,312,817
Property and equipment, net	250,395	173,412
Other non-current assets	341,423	284,802
Total assets	13,586,610	10,202,871
Current liabilities:
Current content liabilities	3,632,711	2,789,023
Accounts payable	312,842	253,491
Accrued expenses	197,632	140,389
Deferred revenue	443,472	346,721
Total current liabilities	4,586,657	3,529,624
Non-current content liabilities	2,894,654	2,026,360
Long-term debt	3,364,311	2,371,362
Other non-current liabilities	61,188	52,099
Total liabilities	10,906,810	7,979,445
Commitments and contingencies
Stockholders equity:
Preferred stock, $0.001 par value; 10,000,000 shares authorized at December 31, 2016 and 2015; no shares issued and outstanding at December 31, 2016 and 2015	0	0
Common stock, $0.001 par value; 4,990,000,000 shares authorized at December 31, 2016 and December 31, 2015, respectively; 430,054,212 and 427,940,440 issued and outstanding at December 31, 2016 and December 31, 2015, respectively	1,599,762	1,324,809
Accumulated other comprehensive loss	(48,565)	(43,308)
Retained earnings	1,128,603	941,925
Total stockholders equity	2,679,800	2,223,426
Total liabilities and stockholders equity	$ 13,586,610	$ 10,202,871

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock and Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Retained Earnings [Member]
Beginning Balance (in shares) at Dec. 31, 2013		417,249,007
Beginning Balance at Dec. 31, 2013	$ 1,333,561	$ 777,501	$ 3,575	$ 552,485
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	266,799			266,799
Other comprehensive income (loss)	$ (8,021)		(8,021)
Issuance of common stock upon exercise of options (in shares)	5,661,880	5,661,880
Issuance of common stock upon exercise of options	$ 61,190	$ 61,190
Stock-based compensation expense	115,239	115,239
Excess stock option income tax benefits	88,940	$ 88,940
Ending Balance (in shares) at Dec. 31, 2014		422,910,887
Ending Balance at Dec. 31, 2014	1,857,708	$ 1,042,870	(4,446)	819,284
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	122,641			122,641
Other comprehensive income (loss)	$ (38,862)		(38,862)
Issuance of common stock upon exercise of options (in shares)	5,029,553	5,029,553
Issuance of common stock upon exercise of options	$ 77,334	$ 77,334
Stock-based compensation expense	124,725	124,725
Excess stock option income tax benefits	79,880	$ 79,880
Ending Balance (in shares) at Dec. 31, 2015		427,940,440
Ending Balance at Dec. 31, 2015	2,223,426	$ 1,324,809	(43,308)	941,925
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	186,678			186,678
Other comprehensive income (loss)	$ (5,257)		(5,257)
Issuance of common stock upon exercise of options (in shares)	2,113,772	2,113,772
Issuance of common stock upon exercise of options	$ 36,979	$ 36,979
Stock-based compensation expense	173,675	173,675
Excess stock option income tax benefits	64,299	$ 64,299
Ending Balance (in shares) at Dec. 31, 2016		430,054,212
Ending Balance at Dec. 31, 2016	$ 2,679,800	$ 1,599,762	$ (48,565)	$ 1,128,603