Stock Analysis on Net
Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

Analysis of Operating Leases

Microsoft Excel

An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Adjustments to Financial Statements for Operating Leases

Meta Platforms Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 229,623 185,727 165,987 159,316 133,376
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 — — — — —
Total assets (adjusted) 229,623 185,727 165,987 159,316 133,376
Adjustment to Total Debt
Total debt (as reported) 19,075 10,610 581 523 473
Add: Operating lease liability (before adoption of FASB Topic 842)2 — — — — —
Add: Operating lease liabilities, current 1,623 1,367 1,127 1,023 800
Add: Operating lease liabilities, non-current 17,226 15,301 12,746 9,631 9,524
Total debt (adjusted) 37,924 27,278 14,454 11,177 10,797

Based on: 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), 10-K (reporting date: 2019-12-31).

1, 2 Equal to total present value of future operating lease payments.

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

Adjusted Financial Ratios for Operating Leases (Summary)

Meta Platforms Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover1
Reported total asset turnover 0.59 0.63 0.71 0.54 0.53
Adjusted total asset turnover 0.59 0.63 0.71 0.54 0.53
Debt to Equity2
Reported debt to equity 0.12 0.08 0.00 0.00 0.00
Adjusted debt to equity 0.25 0.22 0.12 0.09 0.11
Return on Assets3 (ROA)
Reported ROA 17.03% 12.49% 23.72% 18.29% 13.86%
Adjusted ROA 17.03% 12.49% 23.72% 18.29% 13.86%

Based on: 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), 10-K (reporting date: 2019-12-31).

1 See details »

2 See details »

3 See details »

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 2021 to 2022 and from 2022 to 2023.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Meta Platforms Inc. adjusted debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Meta Platforms Inc. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

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

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenue 134,902 116,609 117,929 85,965 70,697
Total assets 229,623 185,727 165,987 159,316 133,376
Activity Ratio
Total asset turnover1 0.59 0.63 0.71 0.54 0.53
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenue 134,902 116,609 117,929 85,965 70,697
Adjusted total assets 229,623 185,727 165,987 159,316 133,376
Activity Ratio
Adjusted total asset turnover2 0.59 0.63 0.71 0.54 0.53

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 134,902 ÷ 229,623 = 0.59

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 134,902 ÷ 229,623 = 0.59

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 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total debt 19,075 10,610 581 523 473
Stockholders’ equity 153,168 125,713 124,879 128,290 101,054
Solvency Ratio
Debt to equity1 0.12 0.08 0.00 0.00 0.00
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 37,924 27,278 14,454 11,177 10,797
Stockholders’ equity 153,168 125,713 124,879 128,290 101,054
Solvency Ratio
Adjusted debt to equity2 0.25 0.22 0.12 0.09 0.11

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 Debt to equity = Total debt ÷ Stockholders’ equity
= 19,075 ÷ 153,168 = 0.12

2 Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 37,924 ÷ 153,168 = 0.25

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Meta Platforms Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income 39,098 23,200 39,370 29,146 18,485
Total assets 229,623 185,727 165,987 159,316 133,376
Profitability Ratio
ROA1 17.03% 12.49% 23.72% 18.29% 13.86%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income 39,098 23,200 39,370 29,146 18,485
Adjusted total assets 229,623 185,727 165,987 159,316 133,376
Profitability Ratio
Adjusted ROA2 17.03% 12.49% 23.72% 18.29% 13.86%

Based on: 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), 10-K (reporting date: 2019-12-31).

2023 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 39,098 ÷ 229,623 = 17.03%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 39,098 ÷ 229,623 = 17.03%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Meta Platforms Inc. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.