Growth rates and hypothetically, Finance Basics

Growth Rates

Most Recent Fiscal Year

Fiscal Year


Fiscal Year


Fiscal Year


Annual Revenue Growth





Annual Net Income Growth





Annual Free Cash Flow Growth





1. What trends, if any, are apparent in these ratios?

2. Netflix's revenue has consistently increased since 2008, and its net income has been positive for the last four years.

3. Hypothetically, is it possible for sales to increase while net income declines? Why or why not?

4. Yes, it is possible. If costs such as higher labor cost or increased advertising or promotional expenses exist, it is possible for net income declines while sales to increases.

5. Hypothetically, is it possible for net income to decline while free cash flow increases? Why or why not? 

Posted Date: 3/7/2013 1:57:38 AM | Location : United States

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