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Facebook Inc. (FB)

Long-term (Investment) Activity Analysis

Difficulty: Beginner

Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Ratios (Summary)

Facebook Inc., long-term (investment) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net fixed asset turnover 2.26 2.96 3.22 3.15 3.14
Total asset turnover 0.57 0.48 0.43 0.36 0.31
Equity turnover 0.66 0.55 0.47 0.41 0.35

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28), 10-K (filing date: 2015-01-29).

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Facebook Inc.’s net fixed asset turnover deteriorated from 2016 to 2017 and from 2017 to 2018.
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Facebook Inc.’s total asset turnover improved from 2016 to 2017 and from 2017 to 2018.
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Facebook Inc.’s equity turnover improved from 2016 to 2017 and from 2017 to 2018.

Net Fixed Asset Turnover

Facebook Inc., net fixed asset turnover calculation, comparison to benchmarks

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Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Revenue 55,838  40,653  27,638  17,928  12,466 
Property and equipment, net 24,683  13,721  8,591  5,687  3,967 
Ratio
Net fixed asset turnover1 2.26 2.96 3.22 3.15 3.14
Benchmarks
Net Fixed Asset Turnover, Competitors
Adobe Inc. 8.40 7.79 7.17 6.09 5.28
Alphabet Inc. 2.29 2.62 2.64 2.58 2.76
International Business Machines Corp. 7.38 7.12 7.38 7.62 8.62
Intuit Inc. 7.34 5.03 4.55 6.15 7.44
Microsoft Corp. 3.75 3.79 4.65 6.35 6.67
Oracle Corp. 6.75 7.10 9.26 10.37 12.50
salesforce.com inc. 5.38 4.69 3.89 4.77 3.28
Net Fixed Asset Turnover, Sector
Software & Computer Services 3.33 3.79 4.24 4.83 5.39
Net Fixed Asset Turnover, Industry
Technology 4.06 4.46 4.95 5.74 5.71

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28), 10-K (filing date: 2015-01-29).

2018 Calculations

1 Net fixed asset turnover = Revenue ÷ Property and equipment, net
= 55,838 ÷ 24,683 = 2.26

Ratio Description The company
Net fixed asset turnover An activity ratio calculated as total revenue divided by net fixed assets. Facebook Inc.’s net fixed asset turnover deteriorated from 2016 to 2017 and from 2017 to 2018.

Total Asset Turnover

Facebook Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Revenue 55,838  40,653  27,638  17,928  12,466 
Total assets 97,334  84,524  64,961  49,407  40,184 
Ratio
Total asset turnover1 0.57 0.48 0.43 0.36 0.31
Benchmarks
Total Asset Turnover, Competitors
Adobe Inc. 0.48 0.50 0.46 0.41 0.38
Alphabet Inc. 0.59 0.56 0.54 0.51 0.50
International Business Machines Corp. 0.65 0.63 0.68 0.74 0.79
Intuit Inc. 1.15 1.27 1.10 0.84 0.87
Microsoft Corp. 0.43 0.37 0.44 0.53 0.50
Oracle Corp. 0.29 0.28 0.33 0.34 0.42
salesforce.com inc. 0.50 0.48 0.52 0.50 0.44
Total Asset Turnover, Sector
Software & Computer Services 0.50 0.46 0.49 0.52 0.54
Total Asset Turnover, Industry
Technology 0.59 0.51 0.55 0.62 0.63

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28), 10-K (filing date: 2015-01-29).

2018 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 55,838 ÷ 97,334 = 0.57

Ratio Description The company
Total asset turnover An activity ratio calculated as total revenue divided by total assets. Facebook Inc.’s total asset turnover improved from 2016 to 2017 and from 2017 to 2018.

Equity Turnover

Facebook Inc., equity turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Selected Financial Data (USD $ in millions)
Revenue 55,838  40,653  27,638  17,928  12,466 
Stockholders’ equity 84,127  74,347  59,194  44,218  36,096 
Ratio
Equity turnover1 0.66 0.55 0.47 0.41 0.35
Benchmarks
Equity Turnover, Competitors
Adobe Inc. 0.96 0.86 0.79 0.68 0.61
Alphabet Inc. 0.77 0.73 0.65 0.62 0.63
International Business Machines Corp. 4.74 4.50 4.38 5.73 7.82
Intuit Inc. 2.53 3.82 4.04 1.80 1.46
Microsoft Corp. 1.33 1.24 1.19 1.17 0.97
Oracle Corp. 0.87 0.70 0.78 0.79 0.82
salesforce.com inc. 1.12 1.12 1.33 1.35 1.34
Equity Turnover, Sector
Software & Computer Services 1.05 0.98 0.97 1.00 1.02
Equity Turnover, Industry
Technology 1.39 1.16 1.15 1.27 1.24

Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28), 10-K (filing date: 2015-01-29).

2018 Calculations

1 Equity turnover = Revenue ÷ Stockholders’ equity
= 55,838 ÷ 84,127 = 0.66

Ratio Description The company
Equity turnover An activity ratio calculated as total revenue divided by shareholders’ equity. Facebook Inc.’s equity turnover improved from 2016 to 2017 and from 2017 to 2018.