Netflix is a company that offers streaming entertainment to households. Customers can choose different types of packages and pay different monthly fees based on the content that they desire. Netflix does business in many different countries, each one is a bit unique. Netflix is considering expanding, but they do not know in which countries they should expand. They do not know what type of content they should expand.

Describe 3 ratios that Netflix could use to help evaluate expansion plans. These must be ratios that are unique to Netflix.

Create your own ratios for Netflix.

Explain what the numerator and the denominator are for each ratio. Explain if the ratio should be as high as possible or as low as possible.

Explain how the ratio will help Netflix management with their expansion plans, in other words, what does the ratio tell them?