Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Meta Platforms Inc., profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
The profitability ratios demonstrate a generally positive trend over the observed period, with notable fluctuations and a recent moderation in performance. Initial declines in profitability during 2022 were followed by a recovery and subsequent peak in late 2023 and early 2024. More recent quarters indicate a leveling off and slight decrease in some key metrics.
- Gross Profit Margin
- The gross profit margin exhibited relative stability between March 2022 and December 2022, fluctuating around 80%. A dip to 78.35% in December 2022 was followed by a consistent upward trend, reaching 82.00% by December 2025. This suggests improving cost management or pricing power over the period.
- Operating Profit Margin
- The operating profit margin experienced a more pronounced decline from 36.68% in March 2022 to 24.82% in December 2022. A strong recovery commenced in 2023, peaking at 42.18% in December 2024. However, the margin decreased to 41.44% in December 2025, indicating potential increases in operating expenses or a slowdown in revenue growth relative to costs.
- Net Profit Margin
- Mirroring the trend in operating profit margin, the net profit margin decreased from 31.20% in March 2022 to 19.90% in December 2022. A substantial increase followed, reaching 37.91% in December 2024. Similar to the operating margin, the net profit margin experienced a slight decline to 30.08% in December 2025, potentially due to factors such as increased interest expense or changes in the effective tax rate.
- Return on Equity (ROE)
- ROE followed a similar pattern to the profit margins, declining from 30.30% in March 2022 to 18.45% in December 2022. A significant rebound occurred, with ROE reaching 36.01% in March 2025. The most recent quarter shows a decrease to 27.83%, suggesting a potential reduction in the efficiency with which equity is being utilized to generate profits.
- Return on Assets (ROA)
- ROA also exhibited a declining trend through December 2022, falling from 22.74% to 12.49%. The recovery in ROA began in 2023, peaking at 23.78% in March 2025. A decrease to 16.52% in December 2025 indicates a reduced ability to generate earnings from its asset base, potentially due to asset inefficiencies or lower profitability.
Overall, the period demonstrates a recovery in profitability following a downturn in 2022. While significant improvements were observed through early 2024, the most recent data suggests a stabilization and slight decline in key profitability ratios, warranting further investigation into the underlying drivers of this trend.
Return on Sales
Return on Investment
Gross Profit Margin
Meta Platforms Inc., gross profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Gross profit | 48,988) | 42,036) | 39,025) | 34,742) | 39,548) | 33,214) | 31,763) | 29,815) | 32,416) | 27,936) | 26,054) | 22,537) | 23,829) | 21,998) | 23,630) | 21,903) | |||||
| Revenue | 59,894) | 51,242) | 47,516) | 42,314) | 48,386) | 40,589) | 39,071) | 36,455) | 40,112) | 34,146) | 31,999) | 28,645) | 32,165) | 27,714) | 28,822) | 27,908) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | 82.00% | 82.00% | 81.95% | 81.75% | 81.67% | 81.43% | 81.40% | 81.44% | 80.76% | 79.05% | 78.34% | 78.40% | 78.35% | 80.31% | 80.47% | 80.34% | |||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | 59.65% | 59.17% | 58.94% | 58.59% | 58.20% | 57.84% | 57.35% | 57.12% | 56.63% | 55.88% | 55.44% | 55.30% | 55.38% | 56.10% | 56.74% | 56.93% | |||||
| Comcast Corp. | 71.75% | 71.88% | 70.82% | 70.36% | 70.08% | 69.73% | 70.53% | 70.00% | 69.76% | 69.96% | 69.65% | 69.49% | 68.53% | 68.41% | 67.34% | 66.64% | |||||
| Netflix Inc. | 48.49% | 48.09% | 48.49% | 46.92% | 46.06% | 45.25% | 43.84% | 43.06% | 41.54% | 39.49% | 38.77% | 38.30% | 39.37% | 39.62% | 40.63% | 41.62% | |||||
| Trade Desk Inc. | — | 78.81% | 79.41% | 80.11% | 80.69% | 81.06% | 81.23% | 81.29% | 81.21% | 81.18% | 81.46% | 81.64% | 82.18% | 81.90% | 81.88% | 81.82% | |||||
| Walt Disney Co. | 37.76% | 37.61% | 37.10% | 36.74% | 35.75% | 35.36% | 35.03% | 34.33% | 33.41% | 32.77% | 33.04% | 33.40% | 34.24% | 34.43% | 33.79% | 34.34% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q4 2025 Calculation
Gross profit margin = 100
× (Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025)
÷ (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
= 100 × (48,988 + 42,036 + 39,025 + 34,742)
÷ (59,894 + 51,242 + 47,516 + 42,314)
= 82.00%
2 Click competitor name to see calculations.
The gross profit margin exhibited a generally stable pattern over the observed period, with some notable fluctuations and an overall upward trend. Initial values were consistently high, followed by a dip, and then a recovery culminating in a plateau towards the end of the period.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The gross profit margin began at 80.34% and remained above 80% for the first three quarters. A slight decrease was observed in the final quarter of 2022, falling to 78.35%. This represents the lowest point in the observed period.
- Recovery and Stabilization (Mar 31, 2023 – Dec 31, 2023)
- Following the decline, the gross profit margin began a recovery, reaching 79.05% by September 30, 2023, and further increasing to 80.76% by December 31, 2023. This indicates a strengthening of the company’s ability to control production costs or increase pricing power.
- Plateau and Slight Increase (Mar 31, 2024 – Dec 31, 2025)
- From March 31, 2024, through December 31, 2025, the gross profit margin demonstrated a period of relative stability, fluctuating between 81.40% and 82.00%. A consistent upward trend is visible, with the margin reaching 82.00% in the final two quarters of the observed period. This suggests sustained profitability and efficient cost management.
- Overall Trend
- The overall trend indicates an increase in gross profit margin from approximately 78.35% to 82.00% over the period. While there were short-term fluctuations, the company demonstrated an ability to improve its gross profitability over time. The consistency in the later periods suggests a mature and stable business model.
The observed fluctuations in gross profit margin warrant further investigation to determine the underlying drivers, such as changes in product mix, input costs, or pricing strategies. However, the overall trend is positive, indicating improving operational efficiency and profitability.
Operating Profit Margin
Meta Platforms Inc., operating profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Income from operations | 24,745) | 20,535) | 20,441) | 17,555) | 23,365) | 17,350) | 14,847) | 13,818) | 16,384) | 13,748) | 9,392) | 7,227) | 6,398) | 5,664) | 8,358) | 8,524) | |||||
| Revenue | 59,894) | 51,242) | 47,516) | 42,314) | 48,386) | 40,589) | 39,071) | 36,455) | 40,112) | 34,146) | 31,999) | 28,645) | 32,165) | 27,714) | 28,822) | 27,908) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | 41.44% | 43.23% | 44.02% | 42.92% | 42.18% | 39.94% | 39.25% | 37.38% | 34.66% | 28.96% | 23.80% | 23.56% | 24.82% | 29.74% | 33.41% | 36.68% | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | 32.03% | 32.19% | 32.68% | 32.67% | 32.11% | 30.93% | 29.83% | 29.03% | 27.42% | 26.51% | 25.75% | 25.35% | 26.46% | 27.85% | 29.65% | 30.47% | |||||
| Comcast Corp. | 16.71% | 17.98% | 18.12% | 18.73% | 18.83% | 18.52% | 19.32% | 19.25% | 19.18% | 19.33% | 11.99% | 11.75% | 11.56% | 11.82% | 18.25% | 17.76% | |||||
| Netflix Inc. | 29.49% | 29.14% | 29.51% | 27.71% | 26.71% | 25.65% | 23.82% | 22.54% | 20.62% | 18.35% | 17.51% | 16.85% | 17.82% | 18.16% | 19.13% | 20.41% | |||||
| Trade Desk Inc. | — | 18.91% | 17.73% | 17.63% | 17.47% | 16.29% | 14.05% | 12.29% | 10.30% | 8.53% | 8.50% | 6.53% | 7.20% | -0.80% | 2.86% | 7.74% | |||||
| Walt Disney Co. | 13.78% | 12.69% | 12.64% | 10.07% | 9.11% | 9.08% | 5.40% | 6.87% | 5.74% | 5.22% | 8.02% | 7.42% | 7.90% | 8.01% | 7.08% | 6.93% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q4 2025 Calculation
Operating profit margin = 100
× (Income from operationsQ4 2025
+ Income from operationsQ3 2025
+ Income from operationsQ2 2025
+ Income from operationsQ1 2025)
÷ (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
= 100 × (24,745 + 20,535 + 20,441 + 17,555)
÷ (59,894 + 51,242 + 47,516 + 42,314)
= 41.44%
2 Click competitor name to see calculations.
The operating profit margin exhibited considerable fluctuation over the observed period. Initially, the metric demonstrated a declining trend, followed by a period of recovery and subsequent stabilization at a relatively high level. A detailed examination of the quarterly figures reveals specific patterns and shifts in profitability.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- From the first quarter of 2022 through the fourth quarter of 2022, the operating profit margin experienced a consistent decrease. Starting at 36.68% in March 2022, it progressively declined to 24.82% by December 2022. This suggests increasing operational costs relative to revenue during this timeframe, or potentially pricing pressures.
- Recovery and Growth (Mar 31, 2023 – Dec 31, 2023)
- The first three quarters of 2023 showed a recovery in the operating profit margin, increasing from 23.56% in March to 34.66% in December. This indicates successful cost management initiatives or increased revenue generation efficiency. The rate of increase accelerated in the latter half of the year.
- Stabilization and Peak (Mar 31, 2024 – Dec 31, 2024)
- The operating profit margin continued to improve in the first half of 2024, reaching a peak of 42.18% in December 2024. This suggests sustained positive momentum in operational performance. The margin remained relatively stable between 37.38% and 42.18% throughout 2024.
- Recent Performance (Mar 31, 2025 – Dec 31, 2025)
- In the first three quarters of 2025, the operating profit margin fluctuated between 42.92% and 43.23%, indicating a period of stability. However, a slight decrease to 41.44% was observed in December 2025, potentially signaling emerging challenges to maintaining peak profitability. This warrants further investigation.
- Overall Trend
- The overall trend demonstrates a cyclical pattern. An initial decline was followed by a substantial recovery and period of high performance, with a recent indication of potential moderation. The operating profit margin has nearly doubled from its low point in December 2022 to its recent levels, demonstrating significant improvement in operational efficiency or pricing power.
The fluctuations in the operating profit margin are closely tied to the reported income from operations and revenue figures. Further analysis correlating these figures with specific operational changes or market conditions would provide a more comprehensive understanding of the observed trends.
Net Profit Margin
Meta Platforms Inc., net profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | 22,768) | 2,709) | 18,337) | 16,644) | 20,838) | 15,688) | 13,465) | 12,369) | 14,018) | 11,583) | 7,788) | 5,709) | 4,653) | 4,395) | 6,687) | 7,465) | |||||
| Revenue | 59,894) | 51,242) | 47,516) | 42,314) | 48,386) | 40,589) | 39,071) | 36,455) | 40,112) | 34,146) | 31,999) | 28,645) | 32,165) | 27,714) | 28,822) | 27,908) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | 30.08% | 30.89% | 39.99% | 39.11% | 37.91% | 35.55% | 34.34% | 32.06% | 28.98% | 23.42% | 18.71% | 18.27% | 19.90% | 24.41% | 28.16% | 31.20% | |||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | 32.81% | 32.23% | 31.12% | 30.86% | 28.60% | 27.74% | 26.70% | 25.90% | 24.01% | 22.46% | 21.05% | 20.58% | 21.20% | 23.75% | 25.89% | 27.57% | |||||
| Comcast Corp. | 16.17% | 18.33% | 18.44% | 12.71% | 13.09% | 11.92% | 12.46% | 12.64% | 12.66% | 12.53% | 5.40% | 4.71% | 4.42% | 4.46% | 11.54% | 11.96% | |||||
| Netflix Inc. | 24.30% | 24.05% | 24.58% | 23.07% | 22.34% | 20.70% | 19.54% | 18.42% | 16.04% | 13.82% | 13.22% | 13.16% | 14.21% | 16.03% | 16.42% | 16.47% | |||||
| Trade Desk Inc. | — | 15.72% | 15.57% | 16.04% | 16.08% | 13.34% | 11.65% | 9.80% | 9.19% | 8.35% | 7.46% | 4.70% | 3.38% | -0.66% | 2.43% | 7.78% | |||||
| Walt Disney Co. | 13.14% | 12.22% | 9.47% | 6.07% | 5.44% | 5.31% | 1.90% | 3.36% | 2.65% | 2.56% | 4.74% | 3.93% | 3.80% | 3.87% | 3.46% | 4.22% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q4 2025 Calculation
Net profit margin = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
= 100 × (22,768 + 2,709 + 18,337 + 16,644)
÷ (59,894 + 51,242 + 47,516 + 42,314)
= 30.08%
2 Click competitor name to see calculations.
The net profit margin exhibited considerable fluctuation over the observed period, spanning from March 31, 2022, to December 31, 2025. An initial downward trend is apparent through the end of 2022, followed by a period of recovery and subsequent stabilization, with a final decline in the most recent quarter.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- The net profit margin began at 31.20% in March 2022 and steadily decreased each quarter, reaching a low of 19.90% by December 2022. This represents a significant contraction in profitability during this timeframe, potentially attributable to rising costs or decreased pricing power.
- Recovery and Stabilization (Mar 31, 2023 – Dec 31, 2023)
- Starting in March 2023, the net profit margin demonstrated a clear recovery. It increased from 18.27% to 28.98% by December 2023, indicating improved operational efficiency or revenue growth outpacing cost increases. This upward trajectory continued into the first three quarters of 2024, peaking at 35.55% in September 2024.
- Recent Performance (Mar 31, 2024 – Dec 31, 2025)
- Following the peak in September 2024, the net profit margin experienced a decline. While remaining relatively high at 39.11% in March 2025 and 39.99% in June 2025, it decreased substantially to 30.89% in September 2025. The final quarter of the period showed a slight recovery to 38.08%, but still represents a decrease from the prior peak. This recent downturn warrants further investigation to determine the underlying causes.
- Overall Trend
- Despite the volatility, the net profit margin generally increased over the entire period, from 31.20% in March 2022 to 38.08% in December 2025. However, the recent decline suggests potential challenges to maintaining profitability at the higher levels achieved in 2024.
The fluctuations in net profit margin correlate with changes in both net income and revenue. Periods of margin expansion coincide with stronger net income growth relative to revenue, while contractions occur when revenue growth does not translate into proportional increases in net income.
Return on Equity (ROE)
Meta Platforms Inc., ROE calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | 22,768) | 2,709) | 18,337) | 16,644) | 20,838) | 15,688) | 13,465) | 12,369) | 14,018) | 11,583) | 7,788) | 5,709) | 4,653) | 4,395) | 6,687) | 7,465) | |||||
| Stockholders’ equity | 217,243) | 194,066) | 195,070) | 185,029) | 182,637) | 164,529) | 156,763) | 149,529) | 153,168) | 142,873) | 134,033) | 124,795) | 125,713) | 124,094) | 125,767) | 123,228) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | 27.83% | 30.16% | 36.66% | 36.01% | 34.14% | 33.76% | 32.81% | 30.60% | 25.53% | 20.81% | 16.82% | 17.18% | 18.45% | 23.23% | 26.74% | 30.30% | |||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | 31.83% | 32.12% | 31.85% | 32.15% | 30.80% | 30.01% | 29.15% | 28.14% | 26.04% | 24.43% | 22.82% | 22.46% | 23.41% | 26.41% | 28.20% | 29.35% | |||||
| Comcast Corp. | 20.64% | 23.29% | 23.65% | 18.13% | 18.92% | 17.11% | 18.14% | 18.67% | 18.61% | 18.34% | 7.74% | 6.86% | 6.63% | 6.73% | 15.35% | 15.18% | |||||
| Netflix Inc. | 41.26% | 40.19% | 41.07% | 38.58% | 35.21% | 34.25% | 32.08% | 30.12% | 26.27% | 20.47% | 18.60% | 19.24% | 21.62% | 24.57% | 26.71% | 28.54% | |||||
| Trade Desk Inc. | — | 16.86% | 15.48% | 15.17% | 13.33% | 11.74% | 10.53% | 9.29% | 8.27% | 7.09% | 6.24% | 3.98% | 2.52% | -0.51% | 1.90% | 6.10% | |||||
| Walt Disney Co. | 11.29% | 10.58% | 8.54% | 5.51% | 4.94% | 4.75% | 1.71% | 2.96% | 2.37% | 2.31% | 4.21% | 3.45% | 3.31% | 3.40% | 2.92% | 3.43% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q4 2025 Calculation
ROE = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Stockholders’ equity
= 100 × (22,768 + 2,709 + 18,337 + 16,644)
÷ 217,243 = 27.83%
2 Click competitor name to see calculations.
Return on Equity (ROE) exhibited considerable fluctuation over the observed period, generally trending upwards with notable peaks and valleys. Initial values demonstrated a strong performance, followed by a period of decline, and then a resurgence culminating in a peak before a recent moderation.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- The ROE began at 30.30% in March 2022 and experienced a consistent decline through the end of the year, reaching 18.45% in December 2022. This decrease coincided with a period where net income decreased from US$7,465 million to US$4,653 million, while stockholders’ equity remained relatively stable.
- Recovery and Peak (Mar 31, 2023 – Dec 31, 2023)
- From March 2023 through December 2023, the ROE demonstrated a strong recovery. It increased from 17.18% to 25.53%, driven by substantial growth in net income, which rose from US$5,709 million to US$14,018 million. Stockholders’ equity also increased during this period, but at a slower rate than net income.
- Continued Growth and Moderation (Mar 31, 2024 – Dec 31, 2025)
- The ROE continued to climb in the first half of 2024, peaking at 36.66% in June 2025. This was supported by continued increases in both net income and stockholders’ equity. However, a noticeable moderation occurred in the latter half of 2025, with the ROE decreasing to 27.83% by December 2025. This decline was primarily attributable to a significant decrease in net income to US$2,709 million in September 2025, followed by a recovery to US$22,768 million in December 2025, while stockholders’ equity continued to grow.
Overall, the ROE demonstrates a sensitivity to changes in net income. While stockholders’ equity provides a stabilizing influence, the larger fluctuations in ROE are directly correlated with the volatility observed in net income figures. The recent moderation in ROE, despite continued growth in equity, warrants further investigation into the factors driving the net income fluctuations.
Return on Assets (ROA)
Meta Platforms Inc., ROA calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | 22,768) | 2,709) | 18,337) | 16,644) | 20,838) | 15,688) | 13,465) | 12,369) | 14,018) | 11,583) | 7,788) | 5,709) | 4,653) | 4,395) | 6,687) | 7,465) | |||||
| Total assets | 366,021) | 303,844) | 294,744) | 280,213) | 276,054) | 256,408) | 230,238) | 222,844) | 229,623) | 216,274) | 206,688) | 184,491) | 185,727) | 178,894) | 169,779) | 164,218) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | 16.52% | 19.26% | 24.26% | 23.78% | 22.59% | 21.66% | 22.34% | 20.53% | 17.03% | 13.75% | 10.91% | 11.62% | 12.49% | 16.12% | 19.81% | 22.74% | |||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | 22.20% | 23.16% | 23.02% | 23.35% | 22.24% | 21.91% | 21.13% | 20.23% | 18.34% | 16.82% | 15.91% | 15.86% | 16.42% | 18.70% | 20.28% | 20.87% | |||||
| Comcast Corp. | 7.34% | 8.28% | 8.36% | 5.87% | 6.08% | 5.44% | 5.75% | 5.85% | 5.81% | 5.80% | 2.48% | 2.18% | 2.09% | 2.12% | 5.26% | 5.25% | |||||
| Netflix Inc. | 19.75% | 18.99% | 19.30% | 17.80% | 16.24% | 14.88% | 14.45% | 13.18% | 11.10% | 9.14% | 8.36% | 8.49% | 9.24% | 10.61% | 10.99% | 11.05% | |||||
| Trade Desk Inc. | — | 7.38% | 7.00% | 7.22% | 6.43% | 5.60% | 4.91% | 4.32% | 3.66% | 3.38% | 2.97% | 1.93% | 1.22% | -0.25% | 0.92% | 2.93% | |||||
| Walt Disney Co. | 6.28% | 5.88% | 4.55% | 2.85% | 2.53% | 2.41% | 0.87% | 1.51% | 1.15% | 1.11% | 2.01% | 1.64% | 1.54% | 1.54% | 1.31% | 1.52% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 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).
1 Q4 2025 Calculation
ROA = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Total assets
= 100 × (22,768 + 2,709 + 18,337 + 16,644)
÷ 366,021 = 16.52%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a clear trend over the observed period. Initially, the ROA demonstrated a declining pattern from March 31, 2022, through December 31, 2022. Subsequently, the ROA began to recover and generally increased from March 31, 2023, to December 31, 2024, before experiencing fluctuations in the final periods analyzed.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- The ROA decreased from 22.74% in March 2022 to 12.49% by the end of 2022. This decline suggests a diminishing ability to generate profit from the company’s asset base during this timeframe. The decrease could be attributed to various factors, including increased asset levels without a corresponding increase in net income, or a reduction in net income itself.
- Recovery and Growth (Mar 31, 2023 – Dec 31, 2024)
- From March 2023, the ROA showed a consistent upward trajectory, rising from 11.62% to reach 22.59% by December 2024. This indicates improved efficiency in utilizing assets to generate earnings. The substantial increase in net income, coupled with a more moderate increase in total assets, contributed to this positive trend.
- Recent Fluctuations (Mar 31, 2025 – Dec 31, 2025)
- The ROA experienced volatility in the most recent periods. It decreased to 19.26% in September 2025, before increasing significantly to 16.52% in December 2025. This fluctuation warrants further investigation to determine the underlying causes, such as seasonal variations in earnings, changes in asset composition, or one-time events impacting profitability.
- Net Income and Total Assets Relationship
- A review of net income and total assets reveals a strong correlation with the ROA trend. Periods of higher net income generally corresponded with higher ROA values, while increases in total assets without proportional increases in net income resulted in lower ROA values. The significant increase in both net income and total assets between September 2023 and December 2025 appears to be a key driver of the observed ROA changes.
Overall, the ROA demonstrates a cyclical pattern with a notable recovery phase followed by recent instability. Continued monitoring of these trends, alongside a deeper analysis of the underlying drivers of net income and asset utilization, is recommended.