Question
Create three Excel worksheets of annual balance sheet data for Netflix stock for the past three years. Use formulas to calculate the following financial indicators
Create three Excel worksheets of annual balance sheet data for Netflix stock for the past three years.
Use formulas to calculate the following financial indicators for each year of data:
o Current ratio
o Debt/equity ratio
o Free cash flow
o Earnings per share
o Price/earnings ratio
o Return on equity
o Net profit margin
Describe how and why each of the ratios has changed over the three-year period. For example, did the current ratio increase or decrease? Why?
Describe how three of the ratios you calculated for your company compare to the general industry.
| As Reported Annual Balance Sheet | |||||
| Report Date | 12/31/2016 | 12/31/2015 | 12/31/2014 | ||
| Currency | USD | USD | USD | ||
| Audit Status | Not Qualified | Not Qualified | Not Qualified | ||
| Consolidated | Yes | Yes | Yes | ||
| Scale | Thousands | Thousands | Thousands | ||
| Cash & cash equivalents | 1467576 | 1809330 | 1113608 | ||
| Short-term investments | 266206 | 501385 | 494888 | ||
| Current content library, net | - | - | 2125702 | ||
| Current content assets, net | 3726307 | 2905998 | - | ||
| Other current assets | 260202 | 215127 | 206271 | ||
| Total current assets | 5720291 | 5431840 | 3940469 | ||
| Non-current content library, net | - | - | 2773326 | ||
| Non-current content assets, net | 7274501 | 4312817 | - | ||
| Information technology assets | 185345 | 194054 | 189274 | ||
| Furniture & fixtures | 32185 | 30914 | 25758 | ||
| Building | 40681 | 40681 | 40681 | ||
| Leasehold improvements | 107945 | 107793 | 57339 | ||
| DVD operations equipment | 70152 | 88471 | 89144 | ||
| Capital work-in-progress | 108296 | 8845 | 12495 | ||
| Property & equipment, gross | 544604 | 470758 | 414691 | ||
| Less: accumulated depreciation | 294209 | 297346 | 264816 | ||
| Property & equipment, net | 250395 | 173412 | 149875 | ||
| Other non-current assets | 341423 | 284802 | 192981 | ||
| Total assets | 13586610 | 10202871 | 7056651 | ||
| Current content liabilities | 3632711 | 2789023 | 2117241 | ||
| Accounts payable | 312842 | 253491 | 201581 | ||
| Accrued expenses | 197632 | 140389 | 69746 | ||
| Deferred revenue | 443472 | 346721 | 274586 | ||
| Total current liabilities | 4586657 | 3529624 | 2663154 | ||
| Non-current content liabilities | 2894654 | 2026360 | 1575832 | ||
| Long-term debt | 3364311 | 2371362 | 900000 | ||
| Other non-current liabilities | 61188 | 52099 | 59957 | ||
| Total liabilities | 10906810 | 7979445 | 5198943 | ||
| Common stock | 1599762 | 1324809 | 60 | ||
| Additional paid-in capital | - | - | 1042810 | ||
| Foreign currency | -47966 | -42502 | -4615 | ||
| Change in unrealized gains on available for sale securities | -599 | -806 | 169 | ||
| Accumulated other comprehensive income (loss) | -48565 | -43308 | -4446 | ||
| Retained earnings (accumulated deficit) | 1128603 | 941925 | 819284 | ||
| Total stockholders' equity (deficiency) | 2679800 | 2223426 | 1857708 |
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Computer Accounting With QuickBooks Pro 2010
Authors: Donna UlmerDonna Kay
12th Edition
0077408756, 9780077408756
