Final Project Part II Companies --- Netflix (NFLX) vs. GEO Holding (TOK)

Overview For this part of the final project, you will be given a scenario in which you are asked to illustrate your financial computation and analysis skills. This part of the assessment addresses the following course outcomes:

Compute financial ratios, time value, variables, and returns using industry standard tools for optimizing financial success.

Analyze corporate financial data for multiple companies in evaluating past and future financial performances.

Part II Prompt

For this section of your employment exam, you will select two companies.

The first company needs to come from your TDAU thinkorswim portfolio which is (Netflix). The second needs to be a competitor of the first company from the same industry. (GEO Holdings).

You will be responsible for collecting, synthesizing, and making decisions regarding both companies. After evaluating these companies financial data, you will then decide which companys stock is the better investment.

This section of your employment examination must be submitted in two parts. Part A will contain the workbooks that house all of your quantitative data and formulas, along with any of the information that is relevant for your chosen companies. Part B will contain your answers to the questions asked below, composed in a cohesive manner. If you are referring to data that is found within the workbooks in Part A, be sure to include a citationfor example, rate of return is 3.570 USD (E64, WB2), where E64 is the cell that the calculation took place in and WB2 is designating workbook 2. This ensures that your instructor can quickly and accurately check data entry, formula use, and financial calculations.

Financial Calculations:

A. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the price-to-earnings ratio for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

B. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the debt-to-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

C. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the return-on-equity ratios for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

D. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the earnings per share for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

E. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the profit margins for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

F. Using the appropriate spreadsheets, which are to be included in the workbooks, calculate the free cash flows for the last three fiscal years of the given and your chosen companies. Be sure that you are entering and using the correct formula.

Netflix Inc. (NMS: NFLX)
Exchange rate used is that of the Year End reported date
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

Geo Holdings Corp (TOK: 2681)
Due to changes with International Financial Reporting Standards (IFRS), recent financials statement presentations have been adjusted to meet this standard. Please note the original historical presentations have remained in the original format
Exchange rate used is that of the Year End reported date
As Reported Annual Balance Sheet
Report Date	03/31/2016		03/31/2015		03/31/2014
Currency	JPY		JPY		JPY
Audit Status	Not Qualified		Not Qualified		Not Qualified
Consolidated	Yes		Yes		Yes
Scale	Millions		Millions		Thousands
Cash & deposits	37683		32052		19869000
Trade notes & accounts receivables	4100		4077		3992000
Merchandise	24894		23834		23495000
Deferred tax assets	2156		1806		1773000
Other current assets	5462		7181		5942000
Allowance for doubtful accounts	-281		-292		343000
Total current assets	74015		68659		54729000
Asset for rent, gross	100974		104514		104647000
Accumulated depreciation - asset for rent	-95154		-97475		96055000
Asset for rent, net	5820		7038		8591000
Buildings & structures, gross	40872		39984		39478000
Accumulated depreciation - buildings & structures	-27470		-26362		25976000
Buildings & structures, net	13402		13622		13501000
Land, net	5844		6356		6651000
Leased assets, gross	2176		3519		4576000
Accumulated depreciation - leased assets	-681		-1764		2588000
Leased assets, net	1495		1754		1988000
Other property, plant & equipment, gross	24838		20562		17708000
Accumulated depreciation - other property, plant & equipment	-18391		-15292		13236000
Other property, plant & equipment, net	6447		5270		4471000
Total property, plant & equipment	33010		34043		35205000
Total intangible assets	1865		1277		2028000
Investment securities	926		1002		1266000
Long-term loans receivable	2250		6682		6628000
Lease & guarantee deposits	14905		14735		15034000
Deferred tax assets	3342		3774		2845000
Other investments & other assets	1222		1188		1760000
Allowance for doubtful accounts	-1332		-3751		3917000
Total investments & other assets	21315		23632		23617000
Total non-current assets	56192		58952		60851000
Total assets	130207		127612		115581000
Trade accounts payable	12631		13540		13124000
Current portion of long-term borrowings	8333		7097		8754000
Current portion of bonds	149		149		249000
Income taxes payable	4815		265		1170000
Reserve for bonuses	1665		1420		1135000
Other current liabilities	10135		12595		10279000
Total current liabilities	37731		35068		34713000
Bonds	105		254		403000
Long-term borrowings	19509		21843		13910000
Lease liabilities	1612		1660		1590000
Deferred tax liabilities	23		22		26000
Asset retirement obligations	4406		3994		3898000
Other non-current liabilities	1857		1554		1839000
Total non-current liabilities	27514		29329		21668000
Total liabilities	65246		64398		56381000
Capital stock	8871		8615		8603000
Capital surplus	3283		6090		6078000
Retained earnings	52542		49998		44381000
Treasury shares	-		-1979		334000
Total shareholders' equity	64697		62724		58729000
Valuation difference on available-for-sale securities	166		282		297000
Loss (gain) on deferred hedge	-15		-		297000
Total accumulated other comprehensive income	150		282		172000
Stock acquisition rights	113		206		59199000
Net assets	64961		63214		115581000
Total liabilities & net assets	130207		127612