The following data were taken from Netflix, Inc.’s 2018 annual report. All dollar amounts are in millions.

Required
a. For each year, compute Netflix’s debt-to-assets ratio, return-on-assets ratio, and return-on-equity ratio. You will need to compute total liabilities.
b. Did the company’s level of financial risk increase or decrease from 2017 to 2018?
c. In which year did the company appear to manage its assets most efficiently?
d. Do the preceding ratios support the concept of financial leverage? Explain.

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Total assets Total liabilities Stockholders' equity Net income Fiscal Years Ending December 31, 2018 $25,974 5,239 1,211 December 31, 2017 $19,013 3,582 559