![]() ![]() In Netflix’ case it is clearly under 33% – therefore Netflix passes this stage. ![]() We divide Total Interest-Bearing Debt ($16,308,974,000) with the Market Cap of the company ($221.68bn) and x 100. Interest-bearing debt to MARKET CAP ratioĪn alternative way of step 2 is to compare interest-bearing debt to market cap – this is preferred by the AAOIFI. However, there is an alternative screening method for step 2, as discussed below. Non-current liabilities (interest bearing) = $15,809,096,000 The total interest-bearing debt should not exceed 33% of total assets.Ĭurrent liabilities (interest bearing) = $499,878,000 This is the first of the three financial ratios we will use. Step 2 – Interest-bearing debt to total assets ratio Our view is that at least 5% of all Netflix’s content will be non- sharia-compliant so we would fail it on this step. You’ll have to make a judgment on whether Netflix passes this step. Clearly shifting though the 1000s of titles will be a difficult task. But how much of this content is halal? Some content will be difficult to categorise as Islamic acceptable or not. The business is obvious – provide a streaming service and make money from subscriptions. The business cannot have more than 5% of its total income from haram sources. ![]() Net income for 2020 was $2,761,395,000 (two billion seven hundred sixty-one million three hundred ninety-five thousand) Now let’s begin to apply our criteria and find out if Netflix stocks are halal. Disney+ have Marvel and Star Wars releases coming out in 2021. Lots of exclusives coming up from these guys. ![]() However – there’s big competition from Disney+, HBO, Amazon and others. New tactics such as a free 48-hour period in India, price increases in the UK, US and elsewhere were some factors that helped with its successes. Aiming to stop borrowing to finance – considering using excess cash to buy back shares, retuning money to shareholders.Yearly profits were almost $25bn in revenue and almost $2.8bn in profit 37 million people subscribed last year, including 8.5 million in the last 3 months alone. The company’s stock was up over 8% following the below news being released: Financial Highlightsīefore we begin our analysis, let’s take a look at some of Netflix’s highlights. We also, have a halal stock screener course where you can access the materials anytime and it goes through step-by-step how to actually screen a stock (it helped me a lot). If you want a detailed explanation of what each criteria contains, you can read our stock screening article. We will only apply the criteria/financial ratios in this article. Interest-bearing debt to total assets ratio.The business (high level is it obviously haram/halal?).To consider if Netflix is Shariah compliant, we will use the following criteria which consist of qualitative and quantitative analysis. We’ll use 12 months ended figures rather than the quarterly for a better overall picture. Let’s take a look at their financial results for its fiscal 2020 4Q as of December 31 2020. You want to buy Netflix stock, but you’re concerned if it is sharia compliant. Halal – We would suggest avoiding Introduction ![]()
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