Stock Analysis on Net
Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Meta Platforms Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Goodwill 20,654 20,654 20,306 19,197 19,050
Acquired users — — — 2,057 2,057
Acquired technology 442 478 507 1,412 1,297
Acquired patents 252 287 380 827 805
Acquired software 250 — — — —
Other 24 28 86 820 859
Finite-lived assets, gross carrying amount 968 793 973 5,116 5,018
Accumulated amortization (478) (430) (458) (4,748) (4,395)
Finite-lived assets, net carrying amount 490 363 515 368 623
Indefinite-lived assets 425 425 382 266 —
Intangible assets, net 915 788 897 634 623
Goodwill and intangible assets 21,569 21,442 21,203 19,831 19,673

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Meta Platforms Inc. intangible assets, net decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Meta Platforms Inc. goodwill and intangible assets increased from 2022 to 2023 and from 2023 to 2024.

Adjustments to Financial Statements: Removal of Goodwill

Meta Platforms Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 276,054 229,623 185,727 165,987 159,316
Less: Goodwill 20,654 20,654 20,306 19,197 19,050
Total assets (adjusted) 255,400 208,969 165,421 146,790 140,266
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 182,637 153,168 125,713 124,879 128,290
Less: Goodwill 20,654 20,654 20,306 19,197 19,050
Stockholders’ equity (adjusted) 161,983 132,514 105,407 105,682 109,240

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Meta Platforms Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Meta Platforms Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover
Reported total asset turnover 0.60 0.59 0.63 0.71 0.54
Adjusted total asset turnover 0.64 0.65 0.70 0.80 0.61
Financial Leverage
Reported financial leverage 1.51 1.50 1.48 1.33 1.24
Adjusted financial leverage 1.58 1.58 1.57 1.39 1.28
Return on Equity (ROE)
Reported ROE 34.14% 25.53% 18.45% 31.53% 22.72%
Adjusted ROE 38.50% 29.50% 22.01% 37.25% 26.68%
Return on Assets (ROA)
Reported ROA 22.59% 17.03% 12.49% 23.72% 18.29%
Adjusted ROA 24.42% 18.71% 14.02% 26.82% 20.78%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Meta Platforms Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Meta Platforms Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Meta Platforms Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Meta Platforms Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Meta Platforms Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenue 164,501 134,902 116,609 117,929 85,965
Total assets 276,054 229,623 185,727 165,987 159,316
Activity Ratio
Total asset turnover1 0.60 0.59 0.63 0.71 0.54
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue 164,501 134,902 116,609 117,929 85,965
Adjusted total assets 255,400 208,969 165,421 146,790 140,266
Activity Ratio
Adjusted total asset turnover2 0.64 0.65 0.70 0.80 0.61

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 164,501 ÷ 276,054 = 0.60

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 164,501 ÷ 255,400 = 0.64

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Meta Platforms Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 276,054 229,623 185,727 165,987 159,316
Stockholders’ equity 182,637 153,168 125,713 124,879 128,290
Solvency Ratio
Financial leverage1 1.51 1.50 1.48 1.33 1.24
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 255,400 208,969 165,421 146,790 140,266
Adjusted stockholders’ equity 161,983 132,514 105,407 105,682 109,240
Solvency Ratio
Adjusted financial leverage2 1.58 1.58 1.57 1.39 1.28

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 276,054 ÷ 182,637 = 1.51

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 255,400 ÷ 161,983 = 1.58

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Meta Platforms Inc. adjusted financial leverage ratio increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 62,360 39,098 23,200 39,370 29,146
Stockholders’ equity 182,637 153,168 125,713 124,879 128,290
Profitability Ratio
ROE1 34.14% 25.53% 18.45% 31.53% 22.72%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 62,360 39,098 23,200 39,370 29,146
Adjusted stockholders’ equity 161,983 132,514 105,407 105,682 109,240
Profitability Ratio
Adjusted ROE2 38.50% 29.50% 22.01% 37.25% 26.68%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 62,360 ÷ 182,637 = 34.14%

2 Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 62,360 ÷ 161,983 = 38.50%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Meta Platforms Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 62,360 39,098 23,200 39,370 29,146
Total assets 276,054 229,623 185,727 165,987 159,316
Profitability Ratio
ROA1 22.59% 17.03% 12.49% 23.72% 18.29%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 62,360 39,098 23,200 39,370 29,146
Adjusted total assets 255,400 208,969 165,421 146,790 140,266
Profitability Ratio
Adjusted ROA2 24.42% 18.71% 14.02% 26.82% 20.78%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 62,360 ÷ 276,054 = 22.59%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 62,360 ÷ 255,400 = 24.42%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Meta Platforms Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.