Netflix

Halal Rating :
Comfortable
Last Price $975
Market Cap $418.41b
1D Change

0.0 %

1 Year Change

72.86 %

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

Pass
Reporting Date Total Revenue Total Expense Interest Income Interest Expense Interest Income Ratio Interest Expense Ratio
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%
March 31, 2024 $9.37b $6.91b - $173.31m 0.00% 2.51%

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

Member Vote

Agree: 9 Disagree: 28

Login to vote on this

Comments

4 Comments

Login to join the discussion

"We are Uncomfortable investing in Amazon due to its involvement in music, movies, advertising, and other prohibited activities"

So with Amazon we are uncomfortable because part of its business is music, movies and we are confortable with NetFlix ?

[email protected] | 4 months ago | 0 Replies
3 0

Login to join the discussion


for interest perspective, it can pass the cercaria but what about the nature of business, which is also one of the most important aspect to decide if the investment in such business is permissible or not...

[email protected] | 4 months, 1 week ago | 0 Replies
1 0

Login to join the discussion


Netflix comfortable, but NVDIA uncomfortable? Hmm.. seems like there is selective morality at play here.

[email protected] | 4 months, 1 week ago | 0 Replies
0 0

Login to join the discussion


Please can you revisit this rating or elaborate because I don't think an entertainment company with inappropriate movies/shows should be comfortable to invest in

[email protected] | 4 months, 1 week ago | 0 Replies
4 0

Login to join the discussion


Recent News & Updates