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Please give a response to the discussion below: Netflix, Inc. is an online streaming service offering special made for Netflix films, TV series, real life

Please give a response to the discussion below:

Netflix, Inc. is an online streaming service offering special made for Netflix films, TV series, real life documentaries, cartoons. They offer numerous categories in multiple languages with accessibility of multiple electronic devices.

The below Comparative shows the positive and negative Netflix has observed for 2019 and 2020. Within the Balance sheet shows their total assets increased by 15.6% shows the growth Netflix has seen. Part of this growth has been in the South Asia countries.

Netflix current ratio for the three months ending December 31, 2020 was 1.25 (Macrotrends, 2021) down from 1.49 in 2018 and currently 1.23 for 2021. Acceptable ratio is between 1.5 and 2.5 which shows a company is liquid and efficient with their working capital. Netflix liquidity might not look as good as they are doing and is something they should watch; however, with their intense expansion plans their liabilities has increased and has decreased their liquidity.

Included below are the income statement, statement of cash flows and annual ratios. The net earnings and gross profits have increased which shows they were profitable, and revenue has increased in the past year and a half. Accounts payables have decreased, this shows that a company is spending less on operating expenses in addition to other expenses have decreased. The Net cash flows from financing activities had a large decrease, but this is to be expected with debt and liabilities increasing because of the expansion currently happening. Cash Flow from financing is used by investors to see a companys financially strong point by looking at their debt, dividends and equity. Netflixs equity has increased by almost 46% showing they are a good investment as Common Shares have increased by 23%.

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