Finance for Marketers: Netflix and Amazon
Marketers need to be skilled consumers of financial data and need to be able to extract critical insights into the firm from financial statements. In this exercise, you will be asked to calculate several of the financial indicators discussed in the lesson for Netflix: Operating Margins, Return on Sales ROS), and Marketing Return on Investment (MROI). In addition to the calculation of these indicators, you will be asked to compare Netflix with Amazon in terms of revenues, profitability, and cash flows.
Please open/download the associated files including financial data for Netflix and Amazon from the material section above.
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Question 1 of 9
1. Question
In 2017, Netflix generated an operating margin of:
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Question 2 of 9
2. Question
In 2018, Netflix generated an operating margin of:
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Question 3 of 9
3. Question
In 2019, Netflix generated an operating margin of:
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Question 4 of 9
4. Question
In 2017, Netflix’s ROS was:
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Question 5 of 9
5. Question
In 2018, Netflix’s ROS was:
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Question 6 of 9
6. Question
In 2019, Netflix’s ROS was:
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Question 7 of 9
7. Question
Given the financial data for Netflix, how would you come up with a Marketing Return on Investment (MROI)—or similar—approach to assess marketing’s contribution to the firm?
Please explain your rationale and calculate marketing’s incremental financial value to Netflix in 2017, 2018, and 2019.
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This response will be reviewed and graded after submission.
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Question 8 of 9
8. Question
What are your critical assessment and limitations of the calculated MROI?
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This response will be reviewed and graded after submission.
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Question 9 of 9
9. Question
Please have a look at Amazon’s selected financial data and compare Amazon—one of Netflix’s main competitors through its Prime Video offer—with Netflix in terms of revenues, profitability, and cash flows.
What is your interpretation of the differences given your knowledge about both firms?
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This response will be reviewed and graded after submission.
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