Create three Excel worksheets of annual income statement 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

As Reported Annual Income Statement
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
Revenues	8830669		6779511		5504656
Cost of revenues	6029901		4591476		3752760
Marketing expenses	991078		824092		607186
Technology & development expenses	852098		650788		472321
General & administrative expenses	577799		407329		269741
Operating income (loss)	379793		305826		402648
Interest expense	150114		132716		50219
Interest & other income (expense)	30828		-31225		-3060
Income before income taxes - United States	188078		95644		325081
Income (loss) before income taxes - foreign	72429		46241		24288
Income (loss) before income taxes	260507		141885		349369
Current tax provision (benefit) - federal	54315		52557		86623
Current tax provision (benefit) - state	5790		-1576		9866
Current tax provision (benefit) - foreign	60571		26918		16144
Total current tax provision (benefit)	120676		77899		112633
Deferred tax provision (benefit) - federal	-24383		-37669		-10994
Deferred tax provision (benefit) - state	-14080		-17635		-17794
Deferred tax provision (benefit) - foreign	-8384		-3351		-1275
Total deferred tax provision (benefit)	-46847		-58655		-30063
Provision for (benefit from) income taxes	73829		19244		82570
Net income (loss)	186678		122641		266799
Weighted average shares outstanding - basic	428822		425889		420546
Weighted average shares outstanding - diluted	438652		436456		431893
Year end shares outstanding	430054.212		427940.44		422910.887
Net income (loss) per share - basic	0.44		0.29		0.634
Net income (loss) per share - diluted	0.43		0.28		0.617
Number of full time employees	4500		3500		2189
Number of part time & temporary employees	200		400		261
Total number of employees	4700		3700		2450
Number of common stockholders	290		237		203
Foreign currency translation adjustments	-5464		-37887		-