Stock Analysis on Net
Stock Analysis on Net
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Facebook Inc. (NASDAQ:FB)

Adjusted Financial Ratios

Advanced level

Adjusted Financial Ratios (Summary)

Facebook Inc., adjusted financial ratios

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Activity Ratio
Total Asset Turnover
Reported 0.54 0.53 0.57 0.48 0.43
Adjusted 0.55 0.53 0.50 0.46 0.42
Liquidity Ratio
Current Ratio
Reported 5.05 4.40 7.19 12.92 11.97
Adjusted 5.17 4.48 7.35 13.20 12.26
Solvency Ratios
Debt to Equity
Reported 0.00 0.00 0.00 0.00 0.00
Adjusted 0.08 0.10 0.18 0.06 0.03
Debt to Capital
Reported 0.00 0.00 0.00 0.00 0.00
Adjusted 0.08 0.09 0.15 0.06 0.03
Financial Leverage
Reported 1.24 1.32 1.16 1.14 1.10
Adjusted 1.24 1.32 1.33 1.20 1.13
Profitability Ratios
Net Profit Margin
Reported 33.90% 26.15% 39.60% 39.20% 36.97%
Adjusted 34.49% 26.56% 39.35% 39.69% 34.59%
Return on Equity (ROE)
Reported 22.72% 18.29% 26.28% 21.43% 17.26%
Adjusted 23.47% 18.75% 26.41% 22.00% 16.36%
Return on Assets (ROA)
Reported 18.29% 13.86% 22.72% 18.85% 15.73%
Adjusted 18.89% 14.20% 19.81% 18.32% 14.47%

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Facebook Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Facebook Inc.’s adjusted current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Facebook Inc.’s adjusted debt-to-equity ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Facebook Inc.’s adjusted debt-to-capital ratio improved from 2018 to 2019 and from 2019 to 2020.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Facebook Inc.’s adjusted financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Facebook Inc.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Facebook Inc.’s adjusted ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Facebook Inc.’s adjusted ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Facebook Inc., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Revenue 85,965  70,697  55,838  40,653  27,638 
Total assets 159,316  133,376  97,334  84,524  64,961 
Activity Ratio
Total asset turnover1 0.54 0.53 0.57 0.48 0.43
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenue2 86,066  70,814  55,887  40,659  27,672 
Adjusted total assets3 157,172  132,426  111,007  88,108  66,165 
Activity Ratio
Adjusted total asset turnover4 0.55 0.53 0.50 0.46 0.42

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Total asset turnover = Revenue ÷ Total assets
= 85,965 ÷ 159,316 = 0.54

2 Adjusted revenue. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted total asset turnover = Adjusted revenue ÷ Adjusted total assets
= 86,066 ÷ 157,172 = 0.55

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Facebook Inc.’s adjusted total asset turnover ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Current Ratio

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Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Current assets 75,670  66,225  50,480  48,563  34,401 
Current liabilities 14,981  15,053  7,017  3,760  2,875 
Liquidity Ratio
Current ratio1 5.05 4.40 7.19 12.92 11.97
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 75,784  66,431  50,709  48,752  34,495 
Adjusted current liabilities3 14,646  14,819  6,900  3,692  2,813 
Liquidity Ratio
Adjusted current ratio4 5.17 4.48 7.35 13.20 12.26

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 75,670 ÷ 14,981 = 5.05

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2020 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 75,784 ÷ 14,646 = 5.17

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Facebook Inc.’s adjusted current ratio deteriorated from 2018 to 2019 but then slightly improved from 2019 to 2020.

Adjusted Debt to Equity

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt —  —  —  —  — 
Stockholders’ equity 128,290  101,054  84,127  74,347  59,194 
Solvency Ratio
Debt to equity1 0.00 0.00 0.00 0.00 0.00
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 10,654  10,324  14,651  4,644  1,964 
Adjusted stockholders’ equity3 126,481  100,338  83,266  73,355  58,496 
Solvency Ratio
Adjusted debt to equity4 0.08 0.10 0.18 0.06 0.03

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 0 ÷ 128,290 = 0.00

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2020 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 10,654 ÷ 126,481 = 0.08

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Facebook Inc.’s adjusted debt-to-equity ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Debt to Capital

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total debt —  —  —  —  — 
Total capital 128,290  101,054  84,127  74,347  59,194 
Solvency Ratio
Debt to capital1 0.00 0.00 0.00 0.00 0.00
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 10,654  10,324  14,651  4,644  1,964 
Adjusted total capital3 137,135  110,662  97,917  77,999  60,460 
Solvency Ratio
Adjusted debt to capital4 0.08 0.09 0.15 0.06 0.03

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 0 ÷ 128,290 = 0.00

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2020 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 10,654 ÷ 137,135 = 0.08

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Facebook Inc.’s adjusted debt-to-capital ratio improved from 2018 to 2019 and from 2019 to 2020.

Adjusted Financial Leverage

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Total assets 159,316  133,376  97,334  84,524  64,961 
Stockholders’ equity 128,290  101,054  84,127  74,347  59,194 
Solvency Ratio
Financial leverage1 1.24 1.32 1.16 1.14 1.10
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 157,172  132,426  111,007  88,108  66,165 
Adjusted stockholders’ equity3 126,481  100,338  83,266  73,355  58,496 
Solvency Ratio
Adjusted financial leverage4 1.24 1.32 1.33 1.20 1.13

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 159,316 ÷ 128,290 = 1.24

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2020 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 157,172 ÷ 126,481 = 1.24

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.
Facebook Inc.’s adjusted financial leverage ratio decreased from 2018 to 2019 and from 2019 to 2020.

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income 29,146  18,485  22,112  15,934  10,217 
Revenue 85,965  70,697  55,838  40,653  27,638 
Profitability Ratio
Net profit margin1 33.90% 26.15% 39.60% 39.20% 36.97%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 29,688  18,810  21,994  16,137  9,572 
Adjusted revenue3 86,066  70,814  55,887  40,659  27,672 
Profitability Ratio
Adjusted net profit margin4 34.49% 26.56% 39.35% 39.69% 34.59%

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

1 2020 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 29,146 ÷ 85,965 = 33.90%

2 Adjusted net income. See details »

3 Adjusted revenue. See details »

4 2020 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenue
= 100 × 29,688 ÷ 86,066 = 34.49%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Facebook Inc.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income 29,146  18,485  22,112  15,934  10,217 
Stockholders’ equity 128,290  101,054  84,127  74,347  59,194 
Profitability Ratio
ROE1 22.72% 18.29% 26.28% 21.43% 17.26%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 29,688  18,810  21,994  16,137  9,572 
Adjusted stockholders’ equity3 126,481  100,338  83,266  73,355  58,496 
Profitability Ratio
Adjusted ROE4 23.47% 18.75% 26.41% 22.00% 16.36%

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

1 2020 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 29,146 ÷ 128,290 = 22.72%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2020 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 29,688 ÷ 126,481 = 23.47%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Facebook Inc.’s adjusted ROE deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016
Reported
Selected Financial Data (US$ in millions)
Net income 29,146  18,485  22,112  15,934  10,217 
Total assets 159,316  133,376  97,334  84,524  64,961 
Profitability Ratio
ROA1 18.29% 13.86% 22.72% 18.85% 15.73%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 29,688  18,810  21,994  16,137  9,572 
Adjusted total assets3 157,172  132,426  111,007  88,108  66,165 
Profitability Ratio
Adjusted ROA4 18.89% 14.20% 19.81% 18.32% 14.47%

Based on: 10-K (filing date: 2021-01-28), 10-K (filing date: 2020-01-30), 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03).

1 2020 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 29,146 ÷ 159,316 = 18.29%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2020 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 29,688 ÷ 157,172 = 18.89%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Facebook Inc.’s adjusted ROA deteriorated from 2018 to 2019 but then improved from 2019 to 2020 not reaching 2018 level.