Question
Utilizing the formula for Return on Assets (ROA), calculate the ROA for Netflix, Inc. based on the following financial information for the fiscal year 2023:
Utilizing the formula for Return on Assets (ROA), calculate the ROA for Netflix, Inc. based on the following financial information for the fiscal year 2023:
- Net Income: $500,000
- Total Assets: $5,000,000
Return on Assets (ROA) measures a company's profitability relative to its total assets and indicates how efficiently the company utilizes its assets to generate profits. Compute Netflix, Inc.'s ROA using the provided financial data and interpret the result to assess the company's operational efficiency and profitability. This analysis aids stakeholders in evaluating Netflix, Inc.'s performance and making informed investment decisions.
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