Question
Create three Excel worksheets of annual statement of cash flow data for Netflix stock for the past three years. Use formulas to calculate the following
Create three Excel worksheets of annual statement of cash flow 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 Cash Flow | |||||
| 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 | ||
| Net income (loss) | 186678 | 122641 | 266799 | ||
| Additions to streaming content library | -8653286 | -5771652 | -3773459 | ||
| Change in streaming content liabilities | 1772650 | 1162413 | 593125 | ||
| Amortization of streaming content library | 4788498 | 3405382 | 2656279 | ||
| Amortization of DVD content library | 78952 | 79380 | 71491 | ||
| Depreciation & amortization of property, equipment & intangibles | 57528 | 62283 | 54028 | ||
| Stock-based compensation expense | 173675 | 124725 | 115239 | ||
| Excess tax benefits from stock-based compensation | -65121 | -80471 | -89341 | ||
| Other non-cash items | 40909 | 31628 | 15282 | ||
| Deferred taxes | -46847 | -58655 | -30063 | ||
| Other current assets | 46970 | 18693 | -8758 | ||
| Accounts payable | 32247 | 51615 | 83812 | ||
| Accrued expenses | 68706 | 48810 | 55636 | ||
| Deferred revenue | 96751 | 72135 | 58819 | ||
| Other non-current assets & liabilities | -52294 | -18366 | -52406 | ||
| Net cash flows from operating activities | -1473984 | -749439 | 16483 | ||
| Acquisition of DVD content library | -77177 | -77958 | -74790 | ||
| Purchases of property & equipment | -107653 | -91248 | -69726 | ||
| Other assets | -941 | -1912 | 1334 | ||
| Purchases of short-term investments | -187193 | -371915 | -426934 | ||
| Proceeds from sale of short-term investments | 282484 | 259079 | 385300 | ||
| Proceeds from maturities of short-term investments | 140245 | 104762 | 141950 | ||
| Net cash flows from investing activities | 49765 | -179192 | -42866 | ||
| Proceeds from issuance of debt | 1000000 | 1500000 | 400000 | ||
| Debt issuance costs | -10700 | -17629 | -7080 | ||
| Proceeds from issuance of common stock | 36979 | 77980 | 60544 | ||
| Excess tax benefits from stock-based compensation | 65121 | 80471 | 89341 | ||
| Principal payments of lease financing obligations | - | -545 | -1093 | ||
| Other financing activities | 230 | - | - | ||
| Net cash flows from financing activities | 1091630 | 1640277 | 541712 | ||
| Effect of exchange rate changes on cash & cash equivalents | -9165 | -15924 | -6686 | ||
| Net increase (decrease) in cash & cash equivalents | -341754 | 695722 | 508643 | ||
| Cash & cash equivalents, beginning of year | 1809330 | 1113608 | 604965 | ||
| Cash & cash equivalents, end of year | 1467576 | 1809330 | 1113608 | ||
| Income taxes paid | 26806 | 27658 | 50573 | ||
| Interest paid | 138566 | 111761 | 41085 | ||
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Capital Markets Institutions And Instruments
Authors: Frank J. Fabozzi, Franco Modigliani
4th Edition
0136026028, 9780136026020
