Stock Analysis on Net
Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Meta Platforms Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.59 0.63 0.71 0.54 0.53
Adjusted 0.60 0.64 0.72 0.55 0.54
Liquidity Ratio
Current Ratio
Reported 2.67 2.20 3.15 5.05 4.40
Adjusted 2.68 2.27 3.15 5.05 4.40
Solvency Ratios
Debt to Equity
Reported 0.12 0.08 0.00 0.00 0.00
Adjusted 0.25 0.22 0.12 0.09 0.11
Debt to Capital
Reported 0.11 0.08 0.00 0.00 0.00
Adjusted 0.20 0.18 0.10 0.08 0.10
Financial Leverage
Reported 1.50 1.48 1.33 1.24 1.32
Adjusted 1.51 1.48 1.33 1.24 1.32
Profitability Ratios
Net Profit Margin
Reported 28.98% 19.90% 33.38% 33.90% 26.15%
Adjusted 29.66% 15.26% 32.66% 34.47% 26.60%
Return on Equity (ROE)
Reported 25.53% 18.45% 31.53% 22.72% 18.29%
Adjusted 26.87% 14.57% 31.18% 23.48% 18.81%
Return on Assets (ROA)
Reported 17.03% 12.49% 23.72% 18.29% 13.86%
Adjusted 17.82% 9.84% 23.49% 18.89% 14.24%

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).

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 current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Meta Platforms Inc. adjusted current ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Meta Platforms Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Meta Platforms Inc. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
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 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Meta Platforms Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Meta Platforms Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Meta Platforms Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

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
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
Selected Financial Data (US$ in millions)
Adjusted revenue2 135,051 116,539 118,154 86,066 70,814
Adjusted total assets3 224,759 180,781 164,258 157,058 132,220
Activity Ratio
Adjusted total asset turnover4 0.60 0.64 0.72 0.55 0.54

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 2023 Calculation
Total asset turnover = Revenue ÷ Total assets
= 134,902 ÷ 229,623 = 0.59

2 Adjusted revenue. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted total asset turnover = Adjusted revenue ÷ Adjusted total assets
= 135,051 ÷ 224,759 = 0.60

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 Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 85,365 59,549 66,666 75,670 66,225
Current liabilities 31,960 27,026 21,135 14,981 15,053
Liquidity Ratio
Current ratio1 2.67 2.20 3.15 5.05 4.40
Adjusted
Selected Financial Data (US$ in millions)
Current assets 85,365 59,549 66,666 75,670 66,225
Adjusted current liabilities2 31,884 26,254 21,135 14,981 15,053
Liquidity Ratio
Adjusted current ratio3 2.68 2.27 3.15 5.05 4.40

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 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 85,365 ÷ 31,960 = 2.67

2 Adjusted current liabilities. See details »

3 2023 Calculation
Adjusted current ratio = Current assets ÷ Adjusted current liabilities
= 85,365 ÷ 31,884 = 2.68

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Meta Platforms Inc. adjusted current ratio deteriorated from 2021 to 2022 but then slightly improved 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
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
Selected Financial Data (US$ in millions)
Adjusted total debt2 37,924 27,278 14,454 11,177 10,797
Adjusted stockholders’ equity3 149,055 122,065 123,746 126,367 100,132
Solvency Ratio
Adjusted debt to equity4 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 19,075 ÷ 153,168 = 0.12

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 37,924 ÷ 149,055 = 0.25

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

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 19,075 10,610 581 523 473
Total capital 172,243 136,323 125,460 128,813 101,527
Solvency Ratio
Debt to capital1 0.11 0.08 0.00 0.00 0.00
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 37,924 27,278 14,454 11,177 10,797
Adjusted total capital3 186,979 149,343 138,200 137,544 110,929
Solvency Ratio
Adjusted debt to capital4 0.20 0.18 0.10 0.08 0.10

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 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 19,075 ÷ 172,243 = 0.11

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 37,924 ÷ 186,979 = 0.20

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

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 229,623 185,727 165,987 159,316 133,376
Stockholders’ equity 153,168 125,713 124,879 128,290 101,054
Solvency Ratio
Financial leverage1 1.50 1.48 1.33 1.24 1.32
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 224,759 180,781 164,258 157,058 132,220
Adjusted stockholders’ equity3 149,055 122,065 123,746 126,367 100,132
Solvency Ratio
Adjusted financial leverage4 1.51 1.48 1.33 1.24 1.32

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 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 229,623 ÷ 153,168 = 1.50

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 224,759 ÷ 149,055 = 1.51

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 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 39,098 23,200 39,370 29,146 18,485
Revenue 134,902 116,609 117,929 85,965 70,697
Profitability Ratio
Net profit margin1 28.98% 19.90% 33.38% 33.90% 26.15%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 40,057 17,788 38,584 29,666 18,833
Adjusted revenue3 135,051 116,539 118,154 86,066 70,814
Profitability Ratio
Adjusted net profit margin4 29.66% 15.26% 32.66% 34.47% 26.60%

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 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 39,098 ÷ 134,902 = 28.98%

2 Adjusted net income. See details »

3 Adjusted revenue. See details »

4 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenue
= 100 × 40,057 ÷ 135,051 = 29.66%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Meta Platforms Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 39,098 23,200 39,370 29,146 18,485
Stockholders’ equity 153,168 125,713 124,879 128,290 101,054
Profitability Ratio
ROE1 25.53% 18.45% 31.53% 22.72% 18.29%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 40,057 17,788 38,584 29,666 18,833
Adjusted stockholders’ equity3 149,055 122,065 123,746 126,367 100,132
Profitability Ratio
Adjusted ROE4 26.87% 14.57% 31.18% 23.48% 18.81%

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 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 39,098 ÷ 153,168 = 25.53%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 40,057 ÷ 149,055 = 26.87%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Meta Platforms Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
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
Selected Financial Data (US$ in millions)
Adjusted net income2 40,057 17,788 38,584 29,666 18,833
Adjusted total assets3 224,759 180,781 164,258 157,058 132,220
Profitability Ratio
Adjusted ROA4 17.82% 9.84% 23.49% 18.89% 14.24%

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 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 39,098 ÷ 229,623 = 17.03%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 40,057 ÷ 224,759 = 17.82%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Meta Platforms Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.