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Netflix Inc. Data for the year ended December 31, 2023: Item Amount Total Assets $2,400,000,000 Total Liabilities $1,700,000,000 Shareholders' Equity $700,000,000 Revenue $1,200,000,000 Operating

Netflix Inc.
 Data for the year ended December 31, 2023:

Item

Amount

Total Assets

$2,400,000,000

Total Liabilities

$1,700,000,000

Shareholders' Equity

$700,000,000

Revenue

$1,200,000,000

Operating Expenses

$800,000,000

Requirements:

  1. Calculate Netflix's debt-to-equity ratio.
  2. Determine Netflix's net profit margin.
  3. Analyze the impact of total assets on Netflix's financial leverage.
  4. Discuss how Netflix recognizes revenue from streaming services.
  5. Evaluate Netflix's financial health using the interest coverage ratio.
  6. Explain the role of the Income Measurement Objective in Netflix’s financial performance and strategic planning.

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