Netflix, Inc (NFLX) has reported 54.59 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $66.75 million, or $0.15 a share in the quarter, compared with $43.18 million, or $0.10 a share for the same period last year. Revenue during the quarter surged 35.88 percent to $2,477.54 million from $1,823.33 million in the previous year period. Gross margin for the quarter expanded 174 basis points over the previous year period to 33.22 percent. Total expenses were 93.79 percent of quarterly revenues, down from 96.72 percent for the same period last year. This has led to an improvement of 293 basis points in operating margin to 6.21 percent.
Operating income for the quarter was $153.93 million, compared with $59.89 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $111.24 million compared with $211.77 million in the prior year period. At the same time, adjusted EBITDA margin contracted 712 basis points in the quarter to 4.49 percent from 11.61 percent in the last year period.
Operating cash flow remains negative
Netflix, Inc has spent $1,473.98 million cash to meet operating activities during the year as against cash outgo of $749.44 million in the last year. Cash flow from investing activities was $49.76 million from investing activities during the year as against cash outgo of $179.19 million in the last year.
Cash flow from financing activities was $1,091.63 million for the year, down 33.45 percent or $548.65 million, when compared with the last year.
Cash and cash equivalents stood at $1,467.58 million as on Dec. 31, 2016, down 18.89 percent or $341.75 million from $1,809.33 million on Dec. 31, 2015.
Working capital drops significantly
Netflix, Inc has witnessed a decline in the working capital over the last year. It stood at $1,133.63 million as at Dec. 31, 2016, down 40.40 percent or $768.58 million from $1,902.22 million on Dec. 31, 2015. Current ratio was at 1.25 as on Dec. 31, 2016, down from 1.54 on Dec. 31, 2015.
Debt increases substantially Netflix, Inc has witnessed an increase in total debt over the last one year. It stood at $3,364.31 million as on Dec. 31, 2016, up 41.87 percent or $992.95 million from $2,371.36 million on Dec. 31, 2015. Netflix has witnessed an increase in long-term debt over the last one year. It stood at $3,364.31 million as on Dec. 31, 2016, up 41.87 percent or $992.95 million from $2,371.36 million on Dec. 31, 2015. Total debt was 24.76 percent of total assets as on Dec. 31, 2016, compared with 23.24 percent on Dec. 31, 2015. Debt to equity ratio was at 1.26 as on Dec. 31, 2016, up from 1.07 as on Dec. 31, 2015. Interest coverage ratio improved to 3.53 for the quarter from 1.69 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
