Company: Netflix

Ratio Analysis.

Submit the finished ratio analysis.

For each ratio, the following Rubric is used:

9-10 Company ratio calculated correctly. Found correct industry ratio. Had excellent discussion from the text and/or CAR about the components of the ratio.

7-8 Company and Industry ratio correct. Good discussion from text and/or CAR about the components of the ratio, but lacked clarity in some areas.

5-6 Had correct company and industry ratios. Little discussion from text and/or CAR about the components of the ratio.

3-4 Calculations incorrect for company and/or corporate ratio incorrect. Very little discussion from text or CAR.

1-2 Calculations incorrect and/or corporate ratio incorrect or not listed. No discussion from text or CAR.

The grades on each ratio is a percentage. These percentages are averaged and multiplied by the total applicable points.

Ratio	9-10	7-8	5-6	3-4	1--2
GPM
OPM
NPM
ROA
ROE
Current
Quick
D/A
D/E
LTD/E
ITO
TAT
FAT
Total

Ratio Analysis Format

For the final draft due next week, following the case analysis should be an appendix containing an analysis of ALL required ratios of the company. You should list the industry ratio amount and the company ratio amount, and give a comparison (in words0 about what this means to the company.

FOR EXAMPLE ......

QUICK RATIO INDUSTRY COMPANY

1.2 .8

This company is below industry average. This company does not have enough quick cash to cover short-term debt. ..then tell what does this mean in this particular situation for the company. Will the company have to sell long-term assets to pay bills? Will it have to liquidate some old inventory?? Look at the special situations found in the case which have arisen to create these numbers for the firm.

You must determine what the companys overall financial situation is by comparing each set of ratios to the industry and to themselves. Cross reference between categories of ratios: profitability, liquidity, and activity.