Cash vs Debt

I am reviewing NFLX’s balance sheet and would like to determine how I should look at cash vs debt.

They list $7.3B in liabilities, which sounds like a lot, but when you compare it to the size of the company I suppose it makes sense. Cash is listed at $2.4B while total assets is listed at $9.2B.

When looking for the amount of cash on hand I see it listed under assets:

Current assets:
Cash and cash equivalents $2.4B
Short-term investments
Current content library, net
Other current assets
Total current assets
Non-current content library, net
Property and equipment, net
Other non-current assets
Total assets $9.2B

When considering cash vs debt, should I lump the “total assets” into the cash category or only include the line “cash and cash equivalents?”

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A second question, I am now looking at BOFI’s quarterly statement. I am trying to find their revenue numbers, but they only list net income and assets. Isn’t net income after expenses? The term “revenue” doesn’t up at all in the statement, neither terms like, top line or gross income.

I am finding that reviewing Quarterly statements is an art in itself as none of the companies follow a standard template.

JC, I’m running into the same thing. Sometimes companies use Total Sales or Net Sales or something instead of “Total Revenues”. Are terms like that interchangeable?

  • Matt

Hi JC, Fletch says revenue isn’t a relevant statistic for banks. I follow earnings and growth of book value.

Hi Matt, Total Sales is almost the same thing as Revenue, but sometimes companies have other small sources of income like Interest, or License Revenue, that they don’t include in Sales (but do in total revenue). Usually you can take them as close to interchangeable.


Thanks Saul. Again, I am indebted.

The more quarterly earning reports I go through, the more I really start to appreciate how some companies lay theirs out and organize them.

  • Matt