Netflix, Inc. is a leading global streaming entertainment service that offers a wide variety of TV series, documentaries, and feature films across a range of genres and languages. The company is headquartered in Los Gatos, California, and was founded in 1997. Netflix is renowned for its original content, including popular series like "Stranger Things" and "The Crown," as well as its expansive library of licensed content.
The cash flow statement provides insights into how much cash or cash equivalents a company has generated and used over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to understand how a company manages its cash resources.
The chart above illustrates the cash flow of Netflix, Inc. in 2024. The width of the bars signifies the amount of cash flow, with wider bars indicating larger amounts.
On the left, we begin with the company's cash position at the start of the year. The cash position increased during the year, indicating that the cash generated from operating activities was sufficient to cover the cash used in financing and investing activities. The cash flow from operating activities is the largest source of cash, significantly surpassing the amounts used in investing and financing activities.
The cash flow from investing activities is negative, suggesting that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is also negative, reflecting that the company paid out more cash for purposes such as debt repayments or other financial obligations.
After accounting for the change in cash, we conclude on the right with the company's cash position at the end of the year.
To provide a sense of the scale of Netflix, Inc.'s cash flow, we have created a real-time counter that simulates the company's cash flow for 2024. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.
This is not a live counter of real cash flows as they happen, but a simulation based on the company's reported cash flow for 2024. The counter is intended to give you a sense of the scale of the company's cash flow and how quickly it moves.
In 2024, Netflix, Inc. generated $7,361 million in cash from operating activities, spent $2,182 million on investing activities, and used $4,074 million on financing activities. Consequently, the company's cash balance increased by $689 million during the year.
The company's beginning cash balance was $7,119 million. This figure typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. By the end of the year, the company's cash balance was $7,807 million.
The company's capital expenditures for the year amounted to $440 million. This figure represents the cash the company invested in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $6,922 million in 2024. This amount represents the cash the company has available to pay dividends, repurchase stock, or make other investments.
| Cash Flow from Operations | 7,361,364 |
| Cash Flow from Investing | -2,181,784 |
| Cash Flow from Financing | -4,074,427 |
| Changes in Cash | 1,105,153 |
| Effect of Exchange Rate Changes | -416,331 |
| Beginning Cash Position | 7,118,515 |
| Ending Cash Position | 7,807,337 |
| Capital Expenditures | -439,538 |
| Free Cash Flow | 6,921,826 |
All amounts in USD (Thousands)
Netflix, Inc.'s cash flow in 2024 reflects a robust generation of cash from operating activities, which significantly exceeds its cash outflows from investing and financing activities. The increase in cash balance by the end of the year highlights the company's strong operational performance. Despite negative cash flows from investing and financing activities, Netflix's ability to generate substantial free cash flow underscores its financial health and potential for future growth and investment.
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