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The above graph represents the Netflix cash on hand by year, starting from the fiscal 1998 to the recently completed year. The company’s total cash on hand consist of actual cash, cash equivalents, and short-term investments. Netflix’s total cash reserves reached an all-time high $5,018.44 million in 2019, with an impressive 32.3% YoY growth.
Growth in Netflix Cash Reserves: History
|Source||Netflix Annual Reports, SEC Filings|
|Note||Netflix fiscal year starts from January 1st|
As the graph shows, Netflix cash pile has increased significantly over the last 20 years. Surprisingly, the OTT giant witnessed an astonishing 1,834% YoY growth in its cash pile, increased from just $1.06 million in 1998 to $20.52 million in 1999. This was the highest-ever yearly growth in cash pile reported in a single year.
Interestingly, by the end of 2002, Netflix’s cash hoard increased to $103.6 million, with 542.3% YoY growth.
It is important to note that Netflix’s total cash on hand declined $87.87 million in 2008, to $297.27 million. That shows a notable 22.8% YoY decline from the previous year.
The fiscal 2013 remained one of the most memorable year for Netflix as the total cash reserves exceeded $1 billion mark. The company reported a strong 60.5% YoY growth in its cash reserves, increased from $748.1 million in 2012 to $1,200.4 million in 2013.
By the end of December 2019, the video streaming giant had $1,223.95 million more cash in reserve than it had in December 2018.
About Netflix Inc.
Netflix Inc. (NASDAQ: NFLX) was founded on August 29, 1997, by Reed Hastings and Marc Randolph as a DVD-rental-by-mail firm. However, the company began its operations on April 14, 1998, by opening the world’s first online DVD rental store. For $19.95 a month, subscribers can rent as many DVDs as they want. The company slowly expanded its business by offering the streaming service in the US while retaining the DVD and Blu-ray rental service. In September 2010, the company began offering its streaming service to Canada, which later expanded to other international markets such as Latin America, the United Kingdom, Ireland, Australia, etc. Netflix is now available almost every corner of the world, except in mainland China (due to local restrictions), Syria, North Korea, and Crimea (due to US sanctions).
Netflix’s IPO (initial public offering) completed on May 29, 2002, selling 5.5 million shares of common stock at the price of $15.00 per share.
On January 22, 2018, Netflix’s market capitalization ballooned to $100 billion, becoming the largest digital media and entertainment company in the world.
Netflix is ranked #38 on the list of the World’s Most Valuable Brands by Forbes, with a brand value of $15.5 billion in 2019.
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