Question

Netflix, Inc. (unaudited) Consolidated Balance Sheets, in thousands December 31, December 31, 2018 2019 Assets 3,794,483 5,018,437 Current assets: Cash and cash equivalents Short-term investments Current content assets, net Other current assets Total current assets Non-current content assets, net* Property and equipment, net Other non-current assets* Total assets Liabilities and Stockholders' Equity Current liabilities: Current content liabilities* Accounts payable Accrued expenses and other liabilities* Deferred revenue Total current liabilities 5,151,186 748,466 9,694,135 14,951,141 418,281 910,843 $25,974,400 1,160,067 6,178,504 24,504,567 565,221 2,727,420 $33,975,712 $4,681,562 562,985 481,874 760,899 6,487,320 $ $4,413,561 674,347 843,043 924,745 6,855,696 $ Calculate the change in Net Working Capital of Netflix for this last fiscal year (2018 - 2019). • • • • • $ 3,884M $ 7,633M $-677M $-3,884M $3,207M

Answer 1

The change in net working capital is computed as shown below:

The net working capital of 2019 is computed as follows:

= Current Assets - Current Liabilities

= $ 6,178,504 - $ 6,855,696

= - $ 677,192

The net working capital of 2018 is computed as follows:

= Current Assets - Current Liabilities

= $ 9,694,135 - $ 6,487,320

= $ 3,206,815

So, the change in net working capital is computed as follows:

= Net working capital in 2019 - Net working capital in 2018

= - $ 677,192 - $ 3,206,815

= - $ 3,884,007

Now we have to multiply the above figures by 1000 as shown below:

= - $ 3,884,007 x 1,000

= - $ 3,884 M

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