NFLX Return on Equity (ROE) Analysis
Higher than 100% of Communication Services sector peers
Updated 1309h ago·SEC filings & market data
Key Takeaway
Return on equity (ROE) shows how much profit a company generates from every dollar of shareholders’ equity; Netflix’s 49.5% means it earns about $0.495 per $1 of equity.
Sector Performance
100th percentileNFLX
49.5%
Sector Median
29.8%
Sector Avg
25.0%
Prior Period
48.5%(Jul 2026)
Deep Analysis
Return on equity (ROE) shows how much profit a company generates from every dollar of shareholders’ equity; Netflix’s 49.5% means it earns about $0.495 per $1 of equity.
That is far above the Communication Services sector median of 10.4%, placing Netflix in the 100th percentile among peers. Year-over-year change is N/A, but quarter-over-quarter ROE rose 2.1% from 48.5%, while the eight-quarter trend direction is N/A. The combination of an exceptionally high ROE and only a recent small quarterly gain implies strong current profitability but unclear sustainability, which tempers both upside opportunity and risk. This metric supports the NEUTRAL verdict: the high level is positive, but the lack of yearly and multi-quarter trend data prevents a stronger bullish conclusion.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about NFLX?
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
How is the Return on Equity (ROE) calculated?
Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.
How does NFLX's Return on Equity (ROE) compare to its sector?
NFLX's Return on Equity (ROE) of 49.5% compares to a Communication Services sector median of 29.8%, placing it in the 100th percentile.
Who are NFLX's closest peers by Return on Equity (ROE)?
The closest Communication Services peers by Return on Equity (ROE) include: META (29.8%), GOOGL (48.7%), VOD (0.1%), TWTR (-3.0%).
Learn More About Return on Equity (ROE)
The Formula
Net Income / Shareholders' Equity
Why It Matters
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
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NFLX
49.5%
Sector Median
29.8%
Sector Avg
25.0%
How NFLX's Return on Equity (ROE) compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.