Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

$24.99

Return on Equity (ROE)
since 2012

Microsoft Excel

Calculation

Meta Platforms Inc., ROE, long-term trends, calculation

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).

1 US$ in millions


Net Income
The net income exhibited a strong upward trajectory from 2012 to 2024, starting at $53 million and reaching $62,360 million. There was consistent growth in most years, with some fluctuations. Notably, between 2017 and 2019, net income increased substantially, reaching a peak of $22,112 million in 2018 before a slight decline in 2019. Following this, net income rebounded and continued growing, with significant gains observed in 2021 and beyond.
Stockholders’ Equity
Stockholders’ equity demonstrated a steady and significant increase over the period analyzed. It began at $11,755 million in 2012 and escalated to $182,637 million by 2024. The growth trend was relatively smooth, with incremental increases yearly, reflecting a strengthening equity base. There were no major declines or reversals, indicating sustained accumulation of equity possibly due to retained earnings and capital infusions.
Return on Equity (ROE)
ROE showed increasing efficiency and profitability relative to equity over time, with notable fluctuations. Starting at 0.45% in 2012, it rose sharply to 9.7% in 2013 and reached double-digit figures from 2015 onward. The highest ROE was registered at 34.14% in 2024, indicating a substantial increase in profitability relative to shareholders’ equity. Some volatility is observed, including dips in 2018 and 2021, but the overall trend points to improved utilization of equity to generate profits.
Overall Trends and Insights
The company experienced robust growth in profitability and equity base from 2012 through 2024. The parallel upward trends in net income and stockholders’ equity suggest successful reinvestment strategies and operational expansion. The ROE improvements reinforce the notion of enhanced capital efficiency, although some yearly fluctuations indicate periodic challenges or market conditions impacting returns. The data imply strong financial health and capacity for generating increasing shareholder value over the analyzed period.

Comparison to Competitors

Meta Platforms Inc., ROE, long-term trends, comparison to competitors

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Sector (Media & Entertainment)

Meta Platforms Inc., ROE, long-term trends, comparison to sector (media & entertainment)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).


Comparison to Industry (Communication Services)

Meta Platforms Inc., ROE, long-term trends, comparison to industry (communication services)

Microsoft Excel

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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31).