Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
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 short-term operating activity ratios exhibit varied trends over the observed period. Generally, fluctuations are present across all metrics, with some indication of stabilization in more recent quarters. A closer examination of individual ratios reveals specific patterns in the company’s operational efficiency and liquidity management.
- Receivables Turnover
- The receivables turnover ratio generally remained within a range of 8.34 to 11.74 throughout the period. Initial values hovered around 10.5, decreased to a low of 8.66 in late 2022, and then showed an increase, peaking at 11.74 in early 2025 before declining slightly to 10.17. This suggests some variability in the efficiency of collecting receivables, potentially influenced by changes in credit policies or customer payment behavior. The most recent quarter shows a slight decrease, warranting further investigation.
- Payables Turnover
- The payables turnover ratio demonstrates more pronounced fluctuations. It began at 7.25, decreased significantly to 5.06 by the end of 2022, and then increased to 8.78 by mid-2023. However, a substantial decline is observed in late 2023 and early 2024, reaching a low of 3.79. The ratio shows some recovery in late 2024 and early 2025, but remains considerably lower than initial values. This pattern suggests shifts in the company’s supplier payment strategies or changes in the timing of purchases.
- Working Capital Turnover
- The working capital turnover ratio shows an increasing trend from 3.13 to 4.33 by early 2023, indicating improved efficiency in utilizing working capital. However, this was followed by a decline to 2.48 by late 2024. A partial recovery is seen in 2025, reaching 5.24 before decreasing to 3.00. This suggests that the company’s ability to generate sales from its working capital has been inconsistent, potentially linked to changes in inventory management or sales volume.
- Average Receivable Collection Period
- The average receivable collection period remained relatively stable around 35 days for much of the period, with a slight increase to 44 days in late 2022. It then returned to 34 days in early 2023 and fluctuated between 31 and 38 days thereafter. The consistency suggests effective credit and collection policies, although the peak in late 2022 requires attention. The most recent value of 36 days indicates a slight lengthening of the collection period.
- Average Payables Payment Period
- The average payables payment period exhibited a significant increase from 50 days to 72 days by the end of 2022. This trend continued into 2023, peaking at 68 days, before a dramatic increase to 96 days in early 2024. The period remained elevated, reaching 116 days in mid-2025, before decreasing to 90 days. This extended payment period could indicate the company is strategically managing its cash flow by delaying payments to suppliers, or potentially facing challenges in maintaining favorable supplier terms.
In summary, the observed ratios suggest a period of operational adjustments. While receivables collection remained relatively consistent, payables management and working capital utilization experienced more significant shifts. The lengthening of the payables payment period is a notable trend that warrants further investigation to understand its implications for supplier relationships and overall financial health.
Turnover Ratios
Average No. Days
Receivables Turnover
| 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) | |||||||||||||||||||||
| Revenue | |||||||||||||||||||||
| Accounts receivable, net | |||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||
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
Receivables turnover
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Accounts receivable, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The receivables turnover ratio exhibits fluctuations over the observed period, generally ranging between approximately 8.3 and 11.8. An initial period of relative stability is followed by a noticeable decline, then a recovery, and finally a slight decrease again.
- Overall Trend
- From March 31, 2022, through December 31, 2022, the receivables turnover ratio decreased from 10.51 to 8.34. This suggests a lengthening of the collection period for accounts receivable during this timeframe. Subsequently, the ratio increased, reaching 10.63 by March 31, 2023, indicating an improvement in collection efficiency. The ratio remained relatively stable through December 31, 2024, before decreasing slightly to 10.17 by December 31, 2025.
- Peak and Trough Values
- The highest recorded receivables turnover ratio was 11.80, observed on March 31, 2025. The lowest ratio, 8.34, occurred on December 31, 2022. These represent the most efficient and least efficient periods for converting receivables into cash, respectively.
- Recent Performance
- In the most recent quarters, the receivables turnover ratio has shown a modest decline. The ratio decreased from 10.63 on December 31, 2024, to 10.17 on December 31, 2025. While not a substantial decrease, this trend warrants monitoring to determine if it indicates a developing pattern of slower collections.
- Correlation with Revenue
- Revenue generally increased over the period, particularly with a significant jump between September 30, 2023, and December 31, 2023. The receivables turnover ratio did not consistently increase in tandem with revenue. The decline in the ratio during the latter part of 2022, despite increasing revenue in the prior quarter, suggests that the growth in sales was not immediately matched by efficient collection of receivables. The ratio’s recovery in early 2023 coincided with a stabilization in revenue growth.
The observed fluctuations in the receivables turnover ratio suggest potential variations in credit policies, collection efforts, or the composition of the customer base. Further investigation into these areas may provide a more comprehensive understanding of the underlying drivers of these trends.
Payables Turnover
| 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) | |||||||||||||||||||||
| Cost of revenue | |||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||
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
Payables turnover
= (Cost of revenueQ4 2025
+ Cost of revenueQ3 2025
+ Cost of revenueQ2 2025
+ Cost of revenueQ1 2025)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The accounts payable turnover ratio exhibits considerable fluctuation throughout the observed period. Initially, the ratio decreased from 7.25 in March 2022 to 5.06 in December 2022, indicating a lengthening of the time it takes to pay suppliers. A subsequent increase occurred through June 2023, reaching a peak of 8.44, suggesting improved efficiency in managing payables. However, the ratio then declined again, falling to 3.14 by June 2025, signaling a renewed slowdown in payment activity.
- Overall Trend
- The overall trend is characterized by volatility rather than a consistent upward or downward movement. The ratio demonstrates periods of improvement followed by periods of decline, suggesting that factors influencing payment terms and supplier relationships are dynamic.
- 2022-2023 Fluctuations
- From March 2022 to June 2023, the ratio experienced a significant swing. The initial decline in 2022 could be attributed to increased purchasing activity coupled with potentially extended payment terms negotiated with suppliers. The subsequent rise in the first half of 2023 suggests a more efficient management of accounts payable, possibly through stricter payment schedules or a reduction in outstanding obligations.
- Recent Decline (2024-2025)
- The more recent decline from 3.79 in September 2024 to 3.14 in June 2025 warrants attention. This decrease could indicate a build-up of accounts payable, potentially due to increased procurement costs, delayed payments, or a deliberate strategy to conserve cash. The slight recovery to 4.07 in December 2025 does not fully offset the earlier decline.
- Correlation with Cost of Revenue
- A comparison with the cost of revenue reveals a complex relationship. While increases in cost of revenue generally correlate with higher accounts payable, the payables turnover ratio does not consistently reflect this. For example, cost of revenue increased substantially from September 2024 to December 2024, but the payables turnover ratio decreased. This suggests that factors beyond simply the volume of purchases are influencing the ratio.
- Accounts Payable Levels
- The absolute level of accounts payable also plays a role. Accounts payable increased significantly from March 2024 to September 2024, coinciding with a decrease in the payables turnover ratio. This suggests that the increase in payables was not matched by a proportional increase in purchases, leading to a slower turnover rate.
In conclusion, the payables turnover ratio demonstrates a pattern of instability. Further investigation into the underlying causes of these fluctuations, including changes in supplier relationships, payment terms, and purchasing strategies, is recommended.
Working Capital Turnover
| 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) | |||||||||||||||||||||
| Current assets | |||||||||||||||||||||
| Less: Current liabilities | |||||||||||||||||||||
| Working capital | |||||||||||||||||||||
| Revenue | |||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||
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
Working capital turnover
= (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
The working capital turnover ratio exhibits fluctuations over the observed period, spanning from March 31, 2022, to December 31, 2025. Initial values indicate a relatively stable turnover, followed by a period of decline and subsequent volatility.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The working capital turnover ratio began at 3.13 and generally increased to 3.59 by the end of 2022. This suggests a modestly improving efficiency in utilizing working capital to generate revenue during this timeframe. The highest value within this period was 3.54, observed in June 2022.
- Decline and Recovery (Mar 31, 2023 – Sep 30, 2023)
- A significant increase to 4.33 was observed in March 2023, followed by a marked decline to 2.65 by September 2023. This indicates a substantial shift in the relationship between working capital and revenue generation. The decrease suggests either a build-up in working capital without a corresponding increase in sales, or a decrease in sales with a relatively stable working capital position.
- Stabilization and Subsequent Increase (Dec 31, 2023 – Jun 30, 2024)
- The ratio remained relatively stable between 2.48 and 3.03 from December 2023 through June 2024. This suggests a period of consolidation after the earlier decline. While not exhibiting strong growth, the ratio did not continue its downward trajectory.
- Recent Trend (Sep 30, 2024 – Dec 31, 2025)
- A notable increase to 3.00 in December 2025 was observed, following values of 2.71 and 2.48 in the preceding quarters. This suggests a recent improvement in the efficiency of working capital utilization. The ratio peaked at 5.24 in September 2025, before decreasing to 3.00 in December 2025. This fluctuation warrants further investigation.
Overall, the working capital turnover ratio demonstrates considerable variability. While there are periods of improvement, the declines observed, particularly between March and September 2023, require attention. The recent increase in the ratio towards the end of the period is a positive sign, but the underlying drivers of these fluctuations should be examined to understand the long-term trends and potential areas for operational improvement.
Average Receivable Collection Period
| 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 | |||||||||||||||||||||
| Receivables turnover | |||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average receivable collection period1 | |||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The average receivable collection period exhibited relative stability over the observed period, with fluctuations primarily occurring between the mid-30s and low-40s. An initial period of consistency at 35 days was observed across the first three quarters of 2022, followed by an increase to 42 days in the final quarter of that year.
- Overall Trend
- The collection period generally remained within a narrow range, suggesting consistent credit and collection policies. However, periodic increases indicate potential slowdowns in collecting receivables, warranting further investigation.
- 2022 Performance
- The year 2022 began with a consistent collection period of 35 days for three consecutive quarters. A notable increase to 42 days was recorded in the fourth quarter, representing a 20% lengthening of the collection cycle. This increase could be attributed to seasonal factors, changes in customer payment behavior, or potentially, a loosening of credit terms.
- 2023 Performance
- In 2023, the average collection period started at 34 days in the first quarter, then increased to 38 days in the second, and remained at 37 days in the third. The final quarter of 2023 saw a further increase to 44 days, mirroring the pattern observed in the fourth quarter of 2022. This suggests a recurring seasonal effect or a consistent year-end slowdown in collections.
- 2024 & 2025 Performance
- The collection period in 2024 largely mirrored 2023, fluctuating between 34 and 38 days throughout the year. A slight increase to 36 days was observed in the final quarter of 2025, but remained within the historical range. The first half of 2025 showed a slight improvement, with collection periods of 31 and 34 days respectively. The final quarter of 2025 saw a return to 36 days.
The observed fluctuations, particularly the consistent increases in the fourth quarter of both 2022 and 2023, suggest a potential area for further analysis. Investigating the reasons behind these increases could lead to improvements in working capital management and cash flow forecasting.
Average Payables Payment Period
| 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 | |||||||||||||||||||||
| Payables turnover | |||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||
| Average payables payment period1 | |||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The average payables payment period exhibited considerable fluctuation throughout the observed period. Initially, the period stood at 50 days in March 2022, increasing to 72 days by December 2022. Subsequently, a decrease was noted, falling to 42 days in June 2023, before rising sharply to 116 days in June 2025. Overall, the period demonstrates a lack of consistent trend, with significant swings occurring across consecutive quarters.
- Initial Increase (Mar 31, 2022 – Dec 31, 2022)
- From March 2022 to December 2022, the average payables payment period increased from 50 days to 72 days. This suggests a lengthening in the time taken to settle obligations to suppliers during this timeframe. This could be attributable to a variety of factors, including strategic decisions to preserve cash, negotiations for extended payment terms with suppliers, or potentially, emerging liquidity constraints.
- Subsequent Volatility (Mar 31, 2023 – Dec 31, 2024)
- Following the peak of 72 days, the period decreased to 42 days by June 2023, indicating a faster rate of payment to suppliers. However, this was followed by an increase to 96 days by September 2024, and then a slight decrease to 93 days by December 2024. This period demonstrates a volatile pattern, suggesting inconsistent payment practices or responsiveness to changing supplier relationships and financial conditions.
- Recent Trend (Mar 31, 2025 – Dec 31, 2025)
- The period continued to fluctuate, reaching a high of 116 days in June 2025, before decreasing to 90 days by December 2025. The peak in June 2025 represents the highest value observed throughout the entire period, warranting further investigation into the underlying causes. The subsequent decrease, while notable, does not fully offset the extended payment timeframe experienced earlier in the year.
The observed fluctuations in the average payables payment period suggest a dynamic relationship with suppliers and potentially, internal cash management strategies. The significant increase to 116 days in June 2025 is a key area for further scrutiny to understand the drivers behind this extended payment duration.