Netflix's Five Year Financial Performance Analysis (2017-2021)

This report analyses the financial performance of Netflix over the past five years (2017-2021). Nasdaq's financial statistics for Netflix are used in this report to assess the company's performance. Netflix's net income grew year over year to reach 5.12 billion U.S. dollars in 2021. Due to the following factors, the five-year growth rate in 2021 declines to 18.81%:
1. A rise in rivals within the media and entertainment industry.
2. As part of its expansion into Europe, the Middle East and Africa (EMEA), Netflix has invested more in localized content.
3. Netflix focuses more on creating original content than licensing content.
Thus, in the last five years except 2020, it had negative operating cash flows, except for 2020, when capital expenditures exceeded operating cash flows. Netflix, therefore, raised its stock price to increase its revenues. In 2020, Corvid-19 positively impacted Netflix revenue and led to a positive cash flow.