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Compute: Gross profit margin, operating profit margin, net profit margin, return on assets, return on equity, total asset turnover, total debt to total assets*, total

Compute: Gross profit margin, operating profit margin, net profit margin, return on assets, return on equity, total asset turnover, total debt to total assets*, total debt to equity, and long-term debt to equity.

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Netflix's Consolidated Statements of Operations, 2005-2018 (in millions of $, except per share data) 2018 2017 2016 2010 2005 Revenues $15,794.3 $11.692.7 $8,830.7 $2.162.6 $682.2 Cost of revenues (almost all of which 9.967.5 8,033.0 6,257.5 1,357.4 465.8 relates to amortization of content assets) Gross profit 5,836.8 3,659.7 2,800.8 805.3 216.4 Operating expenses Technology and development 1,221.8 953.7 780.2 163.3 35.4 Marketing 2,369.5 1,436.3 1,097.5 293.8 144.6 General and administrative 630.3 431.1 315.7 64.5 35.5 Other (2.0) Total operating expenses 4,221.6 3.194.4 2.421.0 521.6 213.4 Operating income 1,605.2 838.7 379.8 283.6 3.0 Interest and other income (expense) 41,725 (115.2) 30.8 (15.9) 5.3 Income before income taxes 1,226.5 485.3 260.5 267.7 8.3 Provision for (benefit from) income taxes 15.2 (73.6) 73.8 106.8 (33.7) Net income $ 1,211.2 $ 558.9 $ 186.7 $ 160.8 $ 42.0 Net income per share: Basic $2.78 $1.29 $0.44 $0.44 $0.11 Diluted $2.68 $1.25 $0.43 $0.40 $0.09 Weighted average common shares outstanding (in millions) Basic 435.4 431.9 428.8 365.5 374.5 Diluted 451.2 446.8 438.7 380.1 458.5EXHIBIT 2 Selected Balance Sheet and Cash Flow Data for Netflix, 2005-2018 (in millions of $) 2018 2017 2016 2010 2005 Selected Balance Sheet Data Cash, cash equivalents, and short-term $ 3,794.5 $ 2,822.8 $ 1,773.8 $350.4 $212.3 investments Current assets 9,694.1 7.670.0 5,720.3 637.2 243.7 Total content assets 20,1 12.1 14.682.0 11,008.8 362.0 57.0 Total assets 25.974.4 19,012.7 13,586.6 982.1 364.7 Current liabilities 6,487.3 5.466.3 4,586.7 388.6 137.6 Long-term debt* 10,360.1 6,499.4 3,364.3 200.0 Stockholders' equity 5,238.8 3,582.0 2,679.8 290.2 226.3 Cash Flow Data Net cash (used in) provided by $(2,680.5) $(1,785.9) $(1,474.0) $276.4 $157.5 operating activities Net cash provided by (used in) (339.1) 34.3 49.8 (116.1) (133.2) investing activities Net cash provided by (used in) 4,048.5 3,077.0 1,091.3 (100.0) 13.3 financing activitiesEXHIBIT 5 Netflix's Performance by Business Segment, 2015-2018 (in millions, except for average monthly revenues per paying member and percentages) Domestic Streaming Segment 2018 2017 2016 2015 Memberships Paid memberships at year-end 58.5 52.8 47.9 43.4 Trial memberships at year-end 2.1 2.0 1.5 1.3 Total 60.6 54.8 49.4 44.7 Net membership additions 5.8 5.55 4.7 5.6 Average monthly revenue per paying membership $11.40 $10.18 $9.21 $8.50 Revenues $7,646.6 $6,153.0 $5,077.3 $4,180.3 Cost of Revenues (Note 1) 4.038.4 3.319.2 2,855.8 2,487.2 Marketing costs 1,025.4 603.7 412.9 313.6 Contribution profit (Note 2) $2,582.9 $2,078.5 $1,712.4 $1,375.5 Contribution margin 34% 34% 34% 33% International Streaming Segment Memberships Paid memberships at year-end 80.8 57.8 41.2 27.4 Trial memberships at year-end 7.1 5.0 3.2 2.6 Total 87.9 62.8 44.4 30.0 Net membership additions 25.1 18.5 14.3 11.7 Average monthly revenue per paying membership $9.43 $8.66 $7.81 $7.48 Revenues $7,782.1 $5,089.2 $3.211.1 $1,953.4 Cost of Revenues (Note 1) 5,776.0 4,359.6 3,042.7 1,780.4 Marketing costs 1,334.1 832.5 684.6 506.4 Contribution profit (Note 2) $ 672.0 $ (102.9) $ (516.2) $ (333.4) Contribution margin 9% (2)% (16)% (17)%Marketing costs 1,334.1 832.5 684.6 506.4 Contribution profit (Note 2) $ 672.0 $ (102.9) $ (516.2) $ (333.4) Contribution margin 9% (2)% (16)% (17)% page 303 Domestic DVD Segment Memberships Paid memberships at year-end 2.7 3.3 4.0 4.8 Trial memberships at year-end .0 .1 .1 .1 Total 2.7 3.4 4.1 4.9 Net membership losses 8 Average monthly revenue per paying membership $10.19 $10.17 $10.22 $10.30 Revenues $ 365.6 $ 450.5 $ 542.3 $ 645.7 Cost of Revenues (Note 1) 153.1 202.5 262.7 323.9 Marketing costs Contribution profit (Note 2) $ 212.5 $ 248.0 $ 279.5 $ 321.8 Contribution margin 58% 55% 52% 50% Global Totals Global streaming memberships at year end, including 148.5 117.6 3.8 74.8 free trials Global streaming average monthly revenue per paying $10.31 $9.43 $8.61 $8.15 membership Revenues $15,794.3 $11,692.7 $8,830.7 $6,779.5 Operating income 1,605.2 838.7 379.8 305.8 Operating margin 10% 7% 4% 5% Net income $ 1,221.2 $ 558.9 $ 186.7 $ 122.6 Note 1: Cost of revenues for the domestic and international streaming segments consist mainly of the amortization of streaming content assets, with the remainder relating to the expenses associated with the acquisition, licensing, and production of such content. Cost of revenues in the domestic DVD segment consist primarily of delivery expenses such as packaging and postage costs, content expenses, and other expenses associated with the company's DVD processing and customer service centers. Note 2: The company defined contribution margin as revenues less cost of revenues and marketing expenses incurred by segment. Source: Netflix, Inc., 2017 and 2018 Annual Report, accessed August 5, 2019

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