Stock Analysis on Net
Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Meta Platforms Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 33.76% = 21.66% × 1.56
Jun 30, 2024 32.81% = 22.34% × 1.47
Mar 31, 2024 30.60% = 20.53% × 1.49
Dec 31, 2023 25.53% = 17.03% × 1.50
Sep 30, 2023 20.81% = 13.75% × 1.51
Jun 30, 2023 16.82% = 10.91% × 1.54
Mar 31, 2023 17.18% = 11.62% × 1.48
Dec 31, 2022 18.45% = 12.49% × 1.48
Sep 30, 2022 23.23% = 16.12% × 1.44
Jun 30, 2022 26.74% = 19.81% × 1.35
Mar 31, 2022 30.30% = 22.74% × 1.33
Dec 31, 2021 31.53% = 23.72% × 1.33
Sep 30, 2021 30.22% = 23.77% × 1.27
Jun 30, 2021 28.18% = 22.83% × 1.23
Mar 31, 2021 25.24% = 20.63% × 1.22
Dec 31, 2020 22.72% = 18.29% × 1.24
Sep 30, 2020 21.47% = 17.26% × 1.24
Jun 30, 2020 21.30% = 16.84% × 1.26
Mar 31, 2020 19.90% = 15.15% × 1.31
Dec 31, 2019 18.29% = 13.86% × 1.32
Sep 30, 2019 — = — × 1.32
Jun 30, 2019 — = — × 1.32
Mar 31, 2019 — = — × 1.27

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in financial leverage ratio.

Three-Component Disaggregation of ROE

Meta Platforms Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 33.76% = 35.55% × 0.61 × 1.56
Jun 30, 2024 32.81% = 34.34% × 0.65 × 1.47
Mar 31, 2024 30.60% = 32.06% × 0.64 × 1.49
Dec 31, 2023 25.53% = 28.98% × 0.59 × 1.50
Sep 30, 2023 20.81% = 23.42% × 0.59 × 1.51
Jun 30, 2023 16.82% = 18.71% × 0.58 × 1.54
Mar 31, 2023 17.18% = 18.27% × 0.64 × 1.48
Dec 31, 2022 18.45% = 19.90% × 0.63 × 1.48
Sep 30, 2022 23.23% = 24.41% × 0.66 × 1.44
Jun 30, 2022 26.74% = 28.16% × 0.70 × 1.35
Mar 31, 2022 30.30% = 31.20% × 0.73 × 1.33
Dec 31, 2021 31.53% = 33.38% × 0.71 × 1.33
Sep 30, 2021 30.22% = 35.88% × 0.66 × 1.27
Jun 30, 2021 28.18% = 37.18% × 0.61 × 1.23
Mar 31, 2021 25.24% = 35.74% × 0.58 × 1.22
Dec 31, 2020 22.72% = 33.90% × 0.54 × 1.24
Sep 30, 2020 21.47% = 32.00% × 0.54 × 1.24
Jun 30, 2020 21.30% = 31.29% × 0.54 × 1.26
Mar 31, 2020 19.90% = 28.57% × 0.53 × 1.31
Dec 31, 2019 18.29% = 26.15% × 0.53 × 1.32
Sep 30, 2019 — = — × — × 1.32
Jun 30, 2019 — = — × — × 1.32
Mar 31, 2019 — = — × — × 1.27

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in financial leverage ratio.

Two-Component Disaggregation of ROA

Meta Platforms Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 21.66% = 35.55% × 0.61
Jun 30, 2024 22.34% = 34.34% × 0.65
Mar 31, 2024 20.53% = 32.06% × 0.64
Dec 31, 2023 17.03% = 28.98% × 0.59
Sep 30, 2023 13.75% = 23.42% × 0.59
Jun 30, 2023 10.91% = 18.71% × 0.58
Mar 31, 2023 11.62% = 18.27% × 0.64
Dec 31, 2022 12.49% = 19.90% × 0.63
Sep 30, 2022 16.12% = 24.41% × 0.66
Jun 30, 2022 19.81% = 28.16% × 0.70
Mar 31, 2022 22.74% = 31.20% × 0.73
Dec 31, 2021 23.72% = 33.38% × 0.71
Sep 30, 2021 23.77% = 35.88% × 0.66
Jun 30, 2021 22.83% = 37.18% × 0.61
Mar 31, 2021 20.63% = 35.74% × 0.58
Dec 31, 2020 18.29% = 33.90% × 0.54
Sep 30, 2020 17.26% = 32.00% × 0.54
Jun 30, 2020 16.84% = 31.29% × 0.54
Mar 31, 2020 15.15% = 28.57% × 0.53
Dec 31, 2019 13.86% = 26.15% × 0.53
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in asset turnover ratio.