Netflix (NASDAQ:NFLX) is a leading streaming service provider, offering a wide range of TV shows, movies, and original content to subscribers worldwide. The company competes with other streaming giants like Amazon Prime Video and Disney+. On January 20, 2026, Netflix reported its earnings, revealing an earnings per share (EPS) of $0.56, surpassing the estimated EPS of $0.55.
The company also reported a revenue of approximately $12.05 billion, exceeding the estimated revenue of about $11.97 billion. Despite this revenue beat, the stock experienced a decline following the earnings announcement. This decline may be attributed to market expectations or other external factors affecting investor sentiment.
Netflix's financial metrics provide further insight into its market position. The company's price-to-earnings (P/E) ratio is approximately 35.51, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 9.19, reflecting the market's valuation of its revenue.
Additionally, Netflix's enterprise value to sales ratio is around 9.31, which provides insight into the company's total valuation relative to its sales. The enterprise value to operating cash flow ratio is approximately 42.19, suggesting how the market values the company's cash flow from operations. Netflix's earnings yield is about 2.82%, offering a perspective on the return on investment.
The debt-to-equity ratio is approximately 0.56, indicating the proportion of debt used to finance the company's assets relative to shareholders' equity. Lastly, Netflix has a current ratio of about 1.33, suggesting its ability to cover short-term liabilities with its short-term assets. These metrics highlight Netflix's financial health and market valuation.
