Take a look at Netflix's financials pictured below. Provide calculations for 10 accounting ratios of your choice for the last two years and explain the significance of each ratio and how it relates to the company. Finally, provide your recommendations based on the outcome of the ratios and the industry situation, and whether you would invest in this company and why.

NETFLIX, INC CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Year Ended December 31 Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash used in operating activities: 58,929 S186,678 122,641 (5,771,652) Additions to streaming content assets Change in streaming content liabilities Amortization of streaming content assets Amortization of DVD content assets Depreciation and amortization of property, equipment and intangibles Stock-based compensation expense Excess tax benefits from stock-based compensation Other non-cash items Foreign currency remeasurement loss on long-term debt Deferred taxes Changes in operating assets and liabilities: 9,805,763) 900,006 (8,653,286) 1.772,650 4,788,498 3,405,382 78,952 40,909 Other current assets Accounts payable Accrued expenses Deferred revenue Other non-current assets and liabilities (234,090) 2,247 68,706 177,974 (18,366) 749,439) Net cash used in operating activities (1,785,948) 1,473,984) Cash flows from investing activities: Acquisitions of DVD content assets Purchases of property and equipment Other assets Purchases of short-term investments Proceeds from sale of short-term investments Proceeds from maturities of short-term investments (53,720) (173,302) (77,177) 77,958) (74,819) 320,154 22.705 34,329 (187,193) 282,484 140,245 49,765 259,079 104.762 (179,192) Net cash provided by (used in) investing activities Cash flows from financing activities: Proceeds from issuance of debt Issuance costs Proceeds from issuance of common stock Excess tax benefits from stock-based compensation Other financing activities 3,020,510 1,000,000 (10,700) 36,979 1,500,000 (32,153) 77,980 80,471 (545) Net cash provided by financing activities 3,076,990 1,091,630 1,640,277 Effect of exchange rate changes on cash and cash equivalents Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning ofyear Cash and cash equivalents, end of year Supplemental disclosure: Income taxes paid (15,924) 695,722 1,113,608 2,822,795 S1,467,576S1,809,330 1,809,330 S 27,658 111,761 26,806 S Increase (decrease) in investing activities included in liabilities (32,643) NETFLIX, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) Year ended December 31 2017 2016 2015 Revenues 11,692,713 S 8,830,669 S 6,779,511 4,591,476 824,092 650,788 407,329 305,826 Cost ofrevenues Marketing Technology and development General and administrative 7,659,666 1,278,022 1,052,778 863,568 838,679 6,029,901 991,078 852,098 577,799 379,793 Operating income Other income (expense): (238,204) (115,154) 485,321 (73,608) (150,114) 30,828 260,507 73,829 (132,716) (31,225) 141,885 19,244 122,641 Interest expense Interest and other income (expense) Income before income taxes Provision for (benefit from) income taxes Net income Eamings per share 558,929 $ 186,678 S Basic 1.29 S 0.44 S 0.29 Diluted 1.25 0.43 S 0.28 Weighted-average common shares outstanding Basic Diluted 431,885 428,822 425,889 446,814 438,652 436,456 See accompanving notes to consolidated financial statements Netflix Consolidated Statements of Cash Flows December 31, December 31, December 31, in thousands) Cash flows from operating activities: 2016 2017 2018 Net income Adjustments to reconcile net income to net cash 186,678 $ 558,929 $ 1,211,242 used in operating activities: Additions to streaming content assets Change in streaming content liabilities Amortization of streaming content assets Amortization of DVD content assets Depreciation and amort. of property, equipment and intangible: Stock-based compensation expense Excess tax benefits from stock-based compensation (8,653,286) 1,772,650 4,788,498 78,952 57,528 173,675 (65,121) 1,473,984 (9,805,763) 900,006 6,197,817 60,657 71,911 182,209 (13,043,437) 999,880 7,532,088 41,212 83,157 320,657 Net cash used in operating activities 1,785,948 2,680,479 Cash flows from investing activities: (77,177) (107,653) (941) (187,193) 282,484 140,245 49,765 (53,720) (173,302) (6,689) (74,819) 320,154 22,705 34,329 (38,586) (173,946) (126,588) Acquisition of DVD content assets Purchases of property and equipment Change in other assets Purchases of short-term investments Proceeds from sale of short-term investments Proceeds from maturities of short-term investments Net cash provided by (used in) investing activities 339,120 Non-GAAP free cash flow reconciliation: Net cash used in operating activities Acquisition of DVD content assets Purchases of property and equipment Change in other assets (1,473,984) (77,177) (107,653) (1,785,948) (53,720) (173,302) 6,689 2019,659) (2,680,479) (38,586) (173,946) 126,588 Non-GAAP free cash flow