In: Accounting
THE COMPANY THAT I HAVE PICKED IS NETFLIX!
Overview: For this task, you will choose and examine a publicly listed company that you are considering analyzing for your final project. You will provide the reason you are choosing to analyze this company for your final project, introduce the key goods and services provided by the company, and explain how the company is organized. Prompt: First, review the Final Project Guidelines and Rubric document so that you understand the scope of the final project. Then, visit the webpage SEC EDGAR Company Filings, and select a company for your final project. Research the company’s background using the corporate website and other web resources. Be sure to cite your sources in APA style. Next, identify the company and address the following critical elements:
Company Selection: Explain why you have you chosen this company for your final project (personal interest, business interest, professional interest, etc.).
Financial Context: Key Goods or Services/Features: Describe the key goods and services your selected organization provides. Include information about where, why, and for whom they are provided. Separate the financial interest of the company into financial and nonfinancial features. For example: Are they a manufacturer offering their own financing to customers? Is the company currently facing any financial woes? Explain how these features of the organization (e.g., major products or services, customers, location) help set the boundaries for business decisions.
Financial Context: Organized: Describe how the company is organized (by product groups, geographic region, function, etc.). Explain how the organization of the company affects accounting and financial information and subsequent business decisions. Hint: A good place to search for this information is in the notes in financial statements. For example: Is the company filing using GAAP, and are there any provisions for non-GAAP filing? Or, how are revenues treated from foreign subsidiaries?
Note: This paper and the instructor’s feedback will inform Final Project Milestone One, which is due in Module Three. Rubric Guidelines for Submission: The short paper should follow these formatting guidelines: 1 to 2 pages in length (excluding title and reference pages), double spaced, with 12-point Times New Roman font, one-inch margins, and citations in the latest APA style.
By choosing netfix to analyze for the final project i seek to understand how the netflix works and how it got so much success among the users in a very short span. The services that are offered by it are making a new way for the users to use the entertainment industry. There are some serious questions like how does it acquire content ?
Key product that is provided by the company is the streaming of media videos on demand. The products of the company are accessible to all hence we can say that it serves to each and every people if they want to use the services of the company.
The income statement is one of the three most crucial financial statements produced to evaluate the financial condition of a company. The income statement determines a summative supposition of a company’s overall profitability by reporting on its attained revenue and then cross-examining it against its corresponding expenses. Companies typically report both an 8-K and a 10-Q quarterly with a 10-K being the annual report filing. The income statement begins with top-line revenue and ends with a company’s earning per share.
The company does not seem currently facing any financial woes. Using information from the first three quarters of 2018, we see that revenue has increased by 38%. The net income of netflix has increased by 189%, and EPS has increased by 185%. It shows that the Netflix remains in a strong growth phase.We see that revenue growth over the past three years has averaged 29%, net income growth has averaged 28%, and EPS growth has averaged 26%.
The success of the Netflix is largely because of the agility of the company which makes an obvious sense that it is an organized as a platform.
capital portion of the income statement get quite tricky since companies may report both GAAP and non-GAAP earnings, which may require certain adjustments to arrive at a non-GAAP EPS. In the October 2018 report, Netflix does not appear to have any adjustments. From EBIT Netflix subtracts out interest paid on debt for capital expenditures, interest earned on invested capital, and taxes.