Growth rates and hypothetically, Finance Basics

Assignment Help:

Growth Rates

Most Recent Fiscal Year

Fiscal Year

(-1)

Fiscal Year

(-2)

Fiscal Year

(-3)

Annual Revenue Growth

48.18%

29.48

22.39

13.22

Annual Net Income Growth

40.58

38.83

39.55

24.65

Annual Free Cash Flow Growth

42.40

34.89

2.56

106.37

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? 


Related Discussions:- Growth rates and hypothetically

Characteristics of investment - venture capitalists, Characteristics of Inv...

Characteristics of Investment - Venture Capitalists Venture capitalists, will just invest in a company whether there is a reasonable chance such the company will be successful

A Small Conclusion required for an assignment, I need a conclusion for my a...

I need a conclusion for my assignment for financial accounting vs management accounting

What is the execution of order in the stock exchange, What is the Execution...

What is the Execution of order in the Stock Exchange When broker receives the margin money and is clear about the order received by him, he puts details in the 'order book'.

Asset based valuation - example, Asset Based Valuation - Example K and...

Asset Based Valuation - Example K and K Company Limited is planning to absorb three other companies so as to realize its sales records of Sh.500, 000 per annum.  Its accountan

Differences between an ordinary annuity and an annuity due, 1. Describe the...

1. Describe the similarities and differences in between an ordinary annuity, an annuity due, and perpetuity.  Provide a methodical answer, including examples to demonstrate your po

Financial management, Financial Management On the other hand a financi...

Financial Management On the other hand a financial manager has to meet the company's strategic or long term needs as long term investment are helpful to the company since:

Revenue Reserves - Retained Earnings, Revenue Reserves - Retained Earnings ...

Revenue Reserves - Retained Earnings These are undistributed earnings.  Those reserves are retained for the given reasons like: A. To create up for the fall in profits so a

Growth rates and hypothetically, Growth Rates Most ...

Growth Rates Most Recent Fiscal Year Fiscal Year (-1) Fiscal Year (-2) Fiscal Year (-3) Annu

Financial and Operational Hedging, There are four different commonly used f...

There are four different commonly used financial hedging techniques and some operational hedging techniques that firms use to manage currency risk. Drawing on literature, critical

Define two instances of liquidity ratio and efficiency ratio, Define two in...

Define two instances of Efficiency Ratio, Liquidity Ratio, Leverage Ratio? 1. Define two instances each of 'Efficiency Ratio', 'Liquidity Ratio', 'Leverage Ratio' and 'Prof

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd