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QuestionsCategory: Investor PsychologyNetflix operating cash flow
Qi Jie asked 2 years ago
2 Answers
Qi Jie answered 2 years ago

Hi, I wanted to upload the file but I accidentally clicked submit, hence the empty qn. I also tried to upload the pic in this comment, but it said max file upload and I am not sure why.
 
My qn is regarding about Netflix latest AR 2018.
I just take a look at their cash used in operating activities and it is negative. I tracked back and see that they heavily amortized their streaming content assets and DVD assets over the past few years. 
In this case, to find their FCF, should I add back those values that are amortized to their net operating cash flow and deduct the CAPEX accordingly? 
Thanks alot.

Victor Chng answered 2 years ago

Hi Qi Jie,

Amortisation is included in the operating cash flow already. There is no need to adjust any figure. The company has been negative cash flow since 2015.

Qi Jie replied 2 years ago

Ok noted, thanks alot Victor!