Netflix's gross profit for the
three
months ended in Mar. 2024 was $4,393 Mil. Netflix's gross profit for the trailing twelve months (TTM) ended in Mar. 2024 was $15,043 Mil.
Gross Margin % is calculated as gross profit divided by its revenue. Netflix's gross profit for the
three
months ended in Mar. 2024 was $4,393 Mil. Netflix's Revenue for the
three
months ended in Mar. 2024 was $9,370 Mil. Therefore, Netflix's Gross Margin % for the quarter that ended in Mar. 2024 was 46.89%.
Netflix had a gross margin of 46.89% for the quarter that ended in Mar. 2024 => Durable competitive advantage
During the past 13 years, the highestGross Margin % of Netflix was 43.07%. The lowest was 29.14%. And the median was 37.59%.
Netflix Gross Profit Historical Data
The historical data trend for Netflix's Gross Profit can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Entertainment subindustry, Netflix's Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Netflix's Gross Profit Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Netflix's Gross Profit distribution charts can be found below:
* The bar in red indicates where Netflix's Gross Profit falls into.
Netflix Gross Profit Calculation
Gross Profit is the different between the sale prices and the cost of buying or producing the goods.
Netflix's Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as
Gross Profit for the trailing twelve months (TTM) ended in Mar. 2024 adds up the quarterly data reported by the company within the most recent 12 months, which was $15,043 Mil.
Gross Profit is the numerator in the calculation of Gross Margin.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Netflix (NAS:NFLX) Gross Profit Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Netflix had a gross margin of 46.89% for the quarter that ended in Mar. 2024 => Durable competitive advantage
Netflix Gross Profit Related Terms
Thank you for viewing the detailed overview of Netflix's Gross Profit provided by GuruFocus.com. Please click on the following links to see related term pages.
Netflix's relatively simple business model involves only one business, its streaming service. It has the biggest television entertainment subscriber base in both the United States and the collective international market, with almost 250 million subscribers globally. Netflix has exposure to nearly the entire global population outside of China. The firm has traditionally avoided live programming or sports content, instead focusing on on-demand access to episodic television, movies, and documentaries. The firm recently began introducing ad-supported subscription plans, giving the firm exposure to the advertising market in addition to the subscription fees that have historically accounted for nearly all its revenue.
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