Meta Platforms Inc. (NASDAQ:META)

The composition of assets exhibited notable shifts between 2021 and 2025. A significant restructuring occurred within both current and non-current asset categories, reflecting evolving investment and operational strategies. Overall, the asset base demonstrated a dynamic allocation over the five-year period.

Liquidity and Current Assets

Current assets as a percentage of total assets decreased from 40.16% in 2021 to 29.70% in 2025. This decline was primarily driven by reductions in cash and cash equivalents, which fell from 10.00% to 9.80%, and marketable securities, decreasing from 18.92% to 12.49%. Accounts receivable, net, also experienced a consistent decrease, moving from 8.46% to 5.40%. While prepaid expenses and other current assets remained relatively stable, their lower overall contribution did not offset the declines in the other current asset components. A temporary increase in current assets was observed between 2022 and 2023, but this was not sustained.

Long-Term Investments and Fixed Assets

Non-current assets increased as a percentage of total assets from 59.84% in 2021 to 70.30% in 2025. Property and equipment, net, showed a consistent increase, rising from 34.83% to 48.19%, indicating substantial investment in fixed assets. Goodwill decreased steadily from 11.57% to 6.70%, potentially reflecting impairment or amortization. Non-marketable equity investments experienced a notable increase in 2025, reaching 7.52% after a decline to 2.67% in 2023. Operating lease right-of-use assets remained relatively stable, fluctuating between 5.41% and 7.32%.

Asset Mix Shifts

The relative importance of property and equipment increased significantly over the period, becoming the largest single asset component by 2025. This suggests a shift towards a more capital-intensive business model. Simultaneously, the proportion of liquid assets (cash, marketable securities, and accounts receivable) decreased, potentially indicating a strategic decision to deploy capital into longer-term investments and operational assets. The increase in non-marketable equity investments in 2025 is a notable development that warrants further investigation.

Other Assets

Other assets demonstrated volatility, increasing from 2.04% in 2021 to 4.03% in 2022 before declining to 2.31% in 2025. This suggests the presence of less predictable or fluctuating asset holdings within this category.

In summary, the asset allocation strategy shifted from a more liquid position in 2021 to a greater emphasis on long-term investments and fixed assets by 2025. This transformation is characterized by a decrease in current assets and an increase in non-current assets, particularly property and equipment.