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Netflix NFLX Return on invested capital

Return on invested capital at other companies

Apple logo
AppleAAPL
89.1%+17.8pp
Electronic Arts logo
Electronic ArtsEA
19.7%-2.6pp
Amazon logo
AmazonAMZN
14%-3.8pp
Charter Communications, Inc. logo
Charter Communications, Inc.CHTR
9%-0.5pp
Comcast logo
ComcastCMCSA
8.1%-4.8pp
EchoStar logo
EchoStarSATS
-42.5%-43.6pp

Other financials

Income statement

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Revenue$12.2B+16.2%
Gross profit$6.4B+20.5%
Operating income$4.0B+18.2%
Net income$5.3B+82.8%
EPS (diluted)$1.23+86.4%

Balance sheet

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Cash & equivalents$12.3B+70.3%
Total debt$16.7B-3.9%
Total equity$31.1B+29.5%
Total assets$61.0B+17.1%

Cash flow

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Operating cash flow$5.3B+89.7%
CapEx$196.1M+52.9%
Free cash flow$5.1B+91.4%

Valuation

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Market cap$324.06B+1.8%
Enterprise value$328.55B+0.3%
P/E24.2×-10.1×
P/S6.9×-1.0×

Profitability

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Gross margin49%+2.1pp
Operating margin29.7%+2.0pp
Net margin28.5%+5.4pp

Returns & leverage

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Return on equity48.5%+7.7pp
Debt / equity0.5×-0.2×
Current ratio1.4×+0.2×

Where this comes from

Calculated from Netflix’s reported figures.

Based on trailing twelve months.

The official record: Netflix’s 10-Q, filed April 17, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Netflix's return on invested capital?
Netflix (NFLX) reported return on invested capital of 33.2% in Q1 2026.
How has Netflix's return on invested capital changed year-over-year?
Netflix's return on invested capital increased by 10.8% year-over-year, from 30% to 33.2%.
What is the long-term trend for Netflix's return on invested capital?
Over 4 years (2021 to 2025), Netflix's return on invested capital has grown at a 8.4% compound annual growth rate (CAGR), from 92.9% to 128.3%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.