The following data were taken from Netflix, Inc.s 2013 annual report. All dollar amounts are in millions.
Question:
Required
a. For each year, compute Netflixs debt to assets ratio, return on assets ratio, and return on equity ratio. You will need to compute total liabilities.
b. Did the companys level of financial risk increase or decrease from 2012 to 2013?
c. In which year did the company appear to manage its assets most efficiently?
d. Do the above ratios support the concept of financial leverage? Explain.
Transcribed Image Text:
Fiscal Years Ending December 31, 2013 $5,412,563 1,333,561 December 31, 2012 Total assets Total liabilities Stockholders' equity Net income $3,967,890 744,673 17,152 112,403
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Related Book For
Fundamental Financial Accounting Concepts
ISBN: 978-0078025907
9th edition
Authors: Thomas Edmonds, Christopher Edmonds
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