When are some factors you should consider before deciding if Netflix (NFLX) stock would be a good investment?
Investing in a company
When determining to invest in a company, the use of financial statements helps make the decision. By reviewing the Income Statement, Balance Sheet, Statement of Cash Flows, and the Statement of Shareholder's equity, an individual can acquire the financial information to determine if the investment is worthwhile.
Answer and Explanation:
Factors that should be considered if Netflix stock would be a good investment include:
- Past trends with income. In 2018, Netflix's income was US$1.211 billion.
- Business Trends. As of 2018, Netflix was in over 100 countries.
- Debt: Netflix has almost 22 billion dollars in debt.
- Membership: 154 million accounts are open for Netflix.
The major hesitancy with Netflix is the amount of debt it carries. However, it continues to make money, and continues to grow.
The ultimate decision on the stock is the individuals, however, these are items that should be reviewed before making the investment.
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from Finance 305: Risk ManagementChapter 3 / Lesson 3