Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Meta Platforms Inc., profitability ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Return on Sales
Gross profit margin 81.67% 80.76% 78.35% 80.79% 80.58%
Operating profit margin 42.18% 34.66% 24.82% 39.65% 38.01%
Net profit margin 37.91% 28.98% 19.90% 33.38% 33.90%
Return on Investment
Return on equity (ROE) 34.14% 25.53% 18.45% 31.53% 22.72%
Return on assets (ROA) 22.59% 17.03% 12.49% 23.72% 18.29%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Meta Platforms Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Meta Platforms Inc. operating profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Meta Platforms Inc. net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

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

Gross Profit Margin

Meta Platforms Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Gross profit 134,340 108,943 91,360 95,280 69,273
Revenue 164,501 134,902 116,609 117,929 85,965
Profitability Ratio
Gross profit margin1 81.67% 80.76% 78.35% 80.79% 80.58%
Benchmarks
Gross Profit Margin, Competitors2
Alphabet Inc. 58.20% 56.63% 55.38% 56.94% 53.58%
Comcast Corp. 70.08% 69.76% 68.53% 66.96% 68.02%
Netflix Inc. 46.06% 41.54% 39.37% 41.64% 38.89%
Walt Disney Co. 35.75% 33.41% 34.24% 33.06% 32.89%

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).

1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 134,340 ÷ 164,501 = 81.67%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Meta Platforms Inc. gross profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

Operating Profit Margin

Meta Platforms Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Income from operations 69,380 46,751 28,944 46,753 32,671
Revenue 164,501 134,902 116,609 117,929 85,965
Profitability Ratio
Operating profit margin1 42.18% 34.66% 24.82% 39.65% 38.01%
Benchmarks
Operating Profit Margin, Competitors2
Alphabet Inc. 32.11% 27.42% 26.46% 30.55% 22.59%
Comcast Corp. 18.83% 19.18% 11.56% 17.89% 16.89%
Netflix Inc. 26.71% 20.62% 17.82% 20.86% 18.34%
Walt Disney Co. 9.11% 5.74% 7.90% 4.46% -2.97%
Operating Profit Margin, Sector
Media & Entertainment 29.12% 24.24% 20.46% 26.39% 20.33%
Operating Profit Margin, Industry
Communication Services 26.15% 22.22% 16.70% 22.45% 16.35%

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).

1 2024 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenue
= 100 × 69,380 ÷ 164,501 = 42.18%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Meta Platforms Inc. operating profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

Net Profit Margin

Meta Platforms Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in millions)
Net income 62,360 39,098 23,200 39,370 29,146
Revenue 164,501 134,902 116,609 117,929 85,965
Profitability Ratio
Net profit margin1 37.91% 28.98% 19.90% 33.38% 33.90%
Benchmarks
Net Profit Margin, Competitors2
Alphabet Inc. 28.60% 24.01% 21.20% 29.51% 22.06%
Comcast Corp. 13.09% 12.66% 4.42% 12.17% 10.17%
Netflix Inc. 22.34% 16.04% 14.21% 17.23% 11.05%
Walt Disney Co. 5.44% 2.65% 3.80% 2.96% -4.38%
Net Profit Margin, Sector
Media & Entertainment 25.03% 19.82% 15.14% 23.20% 17.27%
Net Profit Margin, Industry
Communication Services 20.97% 16.68% 11.47% 18.71% 11.50%

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).

1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 62,360 ÷ 164,501 = 37.91%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Meta Platforms Inc. net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

Return on Equity (ROE)

Meta Platforms Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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%
Benchmarks
ROE, Competitors2
Alphabet Inc. 30.80% 26.04% 23.41% 30.22% 18.09%
Comcast Corp. 18.92% 18.61% 6.63% 14.73% 11.66%
Netflix Inc. 35.21% 26.27% 21.62% 32.28% 24.96%
Walt Disney Co. 4.94% 2.37% 3.31% 2.25% -3.43%
ROE, Sector
Media & Entertainment 26.76% 21.29% 16.62% 23.69% 14.90%
ROE, Industry
Communication Services 23.59% 18.94% 13.32% 20.34% 11.50%

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).

1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 62,360 ÷ 182,637 = 34.14%

2 Click competitor name to see calculations.

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

Return on Assets (ROA)

Meta Platforms Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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%
Benchmarks
ROA, Competitors2
Alphabet Inc. 22.24% 18.34% 16.42% 21.16% 12.60%
Comcast Corp. 6.08% 5.81% 2.09% 5.13% 3.85%
Netflix Inc. 16.24% 11.10% 9.24% 11.48% 7.03%
Walt Disney Co. 2.53% 1.15% 1.54% 0.98% -1.42%
ROA, Sector
Media & Entertainment 15.48% 11.82% 9.07% 13.02% 8.04%
ROA, Industry
Communication Services 10.41% 7.94% 5.43% 8.36% 4.69%

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).

1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 62,360 ÷ 276,054 = 22.59%

2 Click competitor name to see calculations.

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