Netflix

Halal Rating :
Comfortable
Last Price $1,139
Market Cap $485.37b
1D Change

-1.94 %

1 Year Change

77.58 %

Next Earnings Date

Yet to be announced

Company Overview

Netflix is a streaming entertainment service company offering TV series, documentaries, feature films, and mobile games across a wide variety of genres and languages. The company operates through three segments: Streaming, DVD, and Other. The streaming segment includes subscription-based streaming services while the DVD segment, which has been discontinued as of September 2023, included DVD-by-mail services. The Other segment primarily consists of merchandise and other ancillary service revenues.

Revenue Sources

Pass

Netflix's primary revenue comes from subscription fees for its streaming content service. While some of their content may contain material that could be considered inappropriate from an Islamic perspective, subscribers have control over what they choose to watch. The company's business model is based on providing a platform for content distribution rather than primarily producing or exclusively dealing in haram content.

Reliance on Interest

Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
March 31, 2025 $10.54b $7.38b - $184.17m 0.00% 2.50%
Dec. 31, 2024 $10.25b $8.17b - $192.6m 0.00% 2.36%
Sept. 30, 2024 $9.82b $7.1b - $184.83m 0.00% 2.60%
June 30, 2024 $9.56b $7.12b - $167.99m 0.00% 2.36%

Based on the financial data from the last four quarters, Netflix's interest expense to total expense ratios were consistently below 5%, ranging from 2.3% to 2.6% of total expenses. This level of interest expense is considered incidental to their core business operations rather than a significant part of their business model.

Operational Ethics

Pass

While Netflix operates globally and has a presence in many countries, review of their SEC filings and public information does not indicate any material ongoing collaboration with the state of Israel or direct partnerships with the Chinese Communist Party. The company operates as a content platform in these regions but maintains control over its operations and content decisions.

Rating Justification

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Comments

wael_Mosallam April 3, 2025, 4:57 p.m.

Netflix not just stream but produces adult content lot of very bad content including LGTB supporting, how come it is considered Halal to invest in

Reply
wael_Mosallam April 3, 2025, 4:57 p.m.

Netflix not just stream but produces adult content lot of very bad content including LGTB supporting, how come it is considered Halal to invest in

Reply

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