Purchase Solution

Analyzing a company and making comparisons

Not what you're looking for?

Ask Custom Question

Assess the financial position of the Netflix 2011 financial statement in comparison to Redbox their competitor. The emphasis is on cash flow for this analysis.

1. Compute the return on assets, profit margin and asset utilization rate of both companies.
2. Assess Netflix's competitive financial position.
3. Compute the free cash flow of both companies.
4. Assess Netflix's relative cash position and comment on its receipt and use of cash during the year.

Please also provide links to all sources of financial information.

Purchase this Solution

Solution Summary

An analysis of a company is provide in order to make comparisons between competitors.

Solution Preview

1. Netflix
ROA=Net Income/Total Assets=$226,126,000/$3,069,196,000=0.074=7.4%
Net Profit Margin=Net Income/Revenue=$226,126,000/$3,204,577,000=0.071=7.1%
Asset utilization=Revenue/Total Assets=$3,204,577,000/$3,069,196,000=1.04

Redbox (Coinstar)
ROA=Net Income/Total Assets=$114,951,000/$1,467,950,000=0.078=7.8%
Net Profit Margin=Net Income/Revenue=$114,951,000/$1,845,372,000=0.062=6.2%
Asset Utilization=Revenue/Total Assets=$1,845,372,000/$1,467,950,000=1.26

2. Netflix's competitive position relative to Redbox (Coinstar) is slightly weaker. Netflix's return on assets is a lower 7.4% compared to Redbox's 7.8%. Netflix also has a much lower asset utilization at just over 1 compared to Redbox's 1.26. Although Netflix's net profit margin is higher (indicating lower operating ...

Purchase this Solution

Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.


This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Operations Management

This quiz tests a student's knowledge about Operations Management