Meta Platforms Inc. (NASDAQ:META)

The liquidity position, as indicated by the current, quick, and cash ratios, exhibits fluctuations over the observed period. Generally, the ratios demonstrate a decreasing trend through the first half of 2023, followed by a recovery and subsequent moderation through 2025.

Current Ratio

The current ratio began at 2.81 and generally declined to a low of 2.07 in March 2023. A recovery was then observed, peaking at 2.98 in December 2024, before decreasing to 2.60 by December 2025. This suggests an initial weakening in the company’s ability to cover short-term liabilities with short-term assets, followed by an improvement and then a slight moderation. The ratio consistently remains above 2.0, indicating a generally healthy short-term solvency position.

Quick Ratio

Similar to the current ratio, the quick ratio decreased from 2.62 to 1.91 by March 2023. It then experienced a recovery, reaching 2.82 in December 2024, and subsequently decreased to 2.42 by December 2025. The quick ratio’s trend mirrors that of the current ratio, but at lower values, indicating a greater reliance on inventory to meet short-term obligations. The quick ratio also consistently remains above 1.0, suggesting a comfortable ability to meet immediate liabilities with its most liquid assets.

Cash Ratio

The cash ratio demonstrates a similar pattern of decline followed by recovery and moderation. Starting at 2.08, it decreased to 1.48 in March 2023. A subsequent increase brought the ratio to 2.32 in December 2024, before decreasing to 1.95 by December 2025. This ratio, representing the most conservative measure of liquidity, shows a more pronounced fluctuation, indicating changes in the company’s immediate capacity to cover liabilities with cash and cash equivalents. The cash ratio consistently remains above 1.0, indicating a strong immediate liquidity position.

The convergence of these three ratios suggests that the company’s liquidity experienced a period of stress in early 2023, followed by a strengthening of its short-term financial position through 2024. The slight decline observed in the final quarters suggests a potential normalization or strategic allocation of liquid assets, but the ratios remain at generally healthy levels.

The current ratio exhibited fluctuations over the observed period, generally indicating a healthy, though evolving, short-term liquidity position. Initial values demonstrated a strong ability to cover short-term obligations with short-term assets, but a subsequent decline and recovery are apparent.

Overall Trend

The current ratio began at 2.81 and generally decreased through the first half of 2023, reaching a low of 1.97. Following this decline, the ratio experienced a recovery, peaking at 2.98 by the end of 2024. A slight decrease was observed in the first half of 2025, followed by a substantial increase to 2.60 by the end of the period.

Initial Phase (Mar 31, 2022 – Dec 31, 2022)

From March 31, 2022, to December 31, 2022, the current ratio decreased from 2.81 to 2.20. This suggests a relative increase in current liabilities compared to current assets during this period, potentially due to increased short-term financing or a decrease in liquid assets. Despite the decline, the ratio remained above 2.0, indicating a comfortable liquidity position.

Declining Phase (Mar 31, 2023 – Jun 30, 2023)

The period from March 31, 2023, to June 30, 2023, saw a continued decrease, reaching a low of 1.97. This represents the weakest liquidity position observed throughout the analyzed timeframe. The decrease suggests a potential strain on short-term liquidity, requiring close monitoring.

Recovery and Stabilization (Sep 30, 2023 – Dec 31, 2024)

A notable recovery commenced in the latter half of 2023, with the current ratio increasing from 2.57 to 2.98 by the end of 2024. This improvement is likely attributable to an increase in current assets, a decrease in current liabilities, or a combination of both. The ratio stabilized in a healthy range during this period.

Recent Fluctuations (Mar 31, 2025 – Dec 31, 2025)

The most recent data indicates a slight dip to 1.97 in the first half of 2025, followed by a significant increase to 2.60 by the end of the period. This final increase suggests a renewed strengthening of the short-term liquidity position, potentially driven by strategic asset management or liability restructuring.

In summary, the current ratio demonstrates a dynamic pattern of decline, recovery, and recent strengthening. While fluctuations occurred, the ratio generally remained above 1.0, suggesting the entity maintained the ability to cover its current liabilities with current assets throughout the analyzed period.

The quick ratio exhibited fluctuations over the observed period, generally indicating a healthy ability to meet short-term obligations with highly liquid assets. An initial decline from 2.62 in March 2022 to 2.01 in December 2022 is followed by a recovery and subsequent stabilization before another decline and final recovery.

Initial Decline (Mar 31, 2022 – Dec 31, 2022)

The quick ratio decreased from 2.62 to 2.01 over this timeframe. This decline coincided with an increase in current liabilities, from US$21,086 million to US$27,026 million, while the growth in total quick assets was comparatively slower. This suggests a potential strain on immediate liquidity as short-term obligations grew at a faster pace than readily available assets.

Recovery and Stabilization (Mar 31, 2023 – Dec 31, 2023)

From March 2023 to December 2023, the quick ratio demonstrated a recovery, increasing from 1.91 to 2.55. This improvement was driven by a more substantial increase in total quick assets (from US$48,483 million to US$81,572 million) compared to the rise in current liabilities (from US$25,381 million to US$31,960 million). The ratio stabilized at 2.55 in both March and June 2024, indicating a period of consistent liquidity.

Subsequent Fluctuation (Mar 31, 2024 – Jun 30, 2025)

Following the period of stability, the quick ratio experienced another fluctuation. It rose to 2.82 by December 2024, then decreased significantly to 1.67 by September 2025, before recovering to 2.42 by December 2025. This period saw substantial changes in both quick assets and current liabilities. The decrease in September 2025 coincided with a notable increase in current liabilities (US$41,836 million) and a relative slowdown in the growth of quick assets.

Overall Trend

Despite the intermediate fluctuations, the quick ratio generally remained above 2.0 for most of the observed period, suggesting a comfortable margin of safety in meeting short-term liabilities. The most significant decline occurred in the latter half of the period, warranting further investigation into the drivers of the increased current liabilities and the slower growth of quick assets during that time.

The cash ratio exhibited fluctuations over the observed period, generally indicating a strong, though variable, ability to meet current obligations with immediately available cash. An initial decline from March 31, 2022, to December 31, 2022, was followed by a period of relative stability and then a notable increase through the end of 2024. More recent quarters show a decrease followed by a substantial rise again.

Overall Trend

The cash ratio began at 2.08 in March 2022 and decreased to a low of 1.48 by March 2023. It then increased, peaking at 2.32 in December 2023, before declining to 1.20 in September 2024. The ratio experienced a significant increase to 1.95 by December 2025.

Initial Decline (March 2022 - March 2023)

From March 2022 through March 2023, the cash ratio experienced a consistent downward trend. This coincided with a rise in current liabilities and a decrease in total cash assets. The ratio decreased from 2.08 to 1.48, suggesting a weakening, though still healthy, short-term liquidity position.

Subsequent Improvement (March 2023 - December 2023)

Following the low in March 2023, the cash ratio demonstrated a clear upward trajectory. This improvement was driven by a substantial increase in total cash assets, outpacing the growth in current liabilities. The ratio reached 2.05 by December 2023, returning to levels observed earlier in the period.

Recent Volatility (December 2023 - December 2025)

The period from December 2023 to September 2024 saw a decline in the cash ratio, falling to 1.20. This was due to a faster increase in current liabilities compared to cash assets. However, a significant increase in cash assets in the final quarter of 2025 resulted in a substantial rise in the cash ratio to 1.95, indicating a renewed strengthening of the short-term liquidity position.

The fluctuations in the cash ratio suggest a dynamic approach to cash management and potentially strategic adjustments in short-term financing or investment activities. While the ratio generally remained above 1.0, indicating sufficient cash to cover current liabilities, the observed volatility warrants continued monitoring.