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Netflix Inc.: In Search of Cash Flow

Published 19 Nov 2021
Reference 6676
Region North America
Summary

On January 28th, 2021 Netflix Inc., an online streaming service provider based in Los Gatos, California, reported a positive cash flow from operating activities for the first time since 2014. The cases explores how Netflix’s accounting choices contributed to this achievement.

Teaching objectives

The case introduces students to statement of cash flows analysis and demonstrates how changes in firms’ accounting classifications can have dramatic effects on cash flow figures.

Keywords
  • Video tape rental
  • Financial accounting
  • Cash flow statement
  • Intangibles
  • Capitalization
  • Streaming
  • Technology
  • Content development costs
  • Cash flow from operations
  • Amortization
  • Q42021