Analysis of Long-term (Investment) Activity Ratios
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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- Common-Size Income Statement
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- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Current Ratio since 2012
- Total Asset Turnover since 2012
- Price to Operating Profit (P/OP) since 2012
- Analysis of Revenues
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Long-term Activity Ratios (Summary)
Meta Platforms Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio showed an increasing trend from 1.88 in 2020 to a peak of 2.04 in 2021, indicating improved efficiency in generating sales from fixed assets during this period. However, this ratio declined steadily over the subsequent years, reaching 1.36 by the end of 2024, suggesting a gradual decrease in the effectiveness of fixed asset utilization.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When considering operating leases and right-of-use assets, a similar pattern emerges. The ratio rose from 1.56 in 2020 to 1.69 in 2021, followed by a consistent decline to 1.21 by 2024. This trend mirrors the net fixed asset turnover without these assets, underscoring a reduced turnover efficiency when broader asset bases are included.
- Total Asset Turnover
- The total asset turnover ratio increased notably from 0.54 in 2020 to 0.71 in 2021, indicating more effective utilization of all assets to generate revenue. However, after 2021, the ratio declined to 0.63 in 2022 and remained relatively stable, fluctuating slightly between 0.59 and 0.60 through 2023 and 2024. This suggests a stabilization of asset efficiency at a moderately lower level than the 2021 peak.
- Equity Turnover
- Equity turnover improved significantly from 0.67 in 2020 to 0.94 in 2021, maintaining close to this level with slight decreases to 0.93 in 2022 and 0.88 in 2023, before a slight recovery to 0.90 in 2024. Overall, this points to relatively stable equity utilization to generate revenue, with minor fluctuations but no strong downward or upward trend.
Net Fixed Asset Turnover
Meta Platforms Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the five-year period from December 31, 2020, to December 31, 2024.
- Revenue
- The revenue shows a consistent upward trajectory, growing from 85,965 million US dollars in 2020 to an estimated 164,501 million US dollars in 2024. Although the increase from 2021 to 2022 is marginal, the overall trend remains positive with significant acceleration in the final two years, indicating expanding business operations and market demand.
- Property and Equipment, Net
- The net value of property and equipment demonstrates a robust increase from 45,633 million US dollars in 2020 up to 121,346 million US dollars in 2024. This growth indicates continued investment in fixed assets, likely reflecting capacity expansion, infrastructure development, or technological upgrades. The rate of increase accelerates over time, suggesting an intensified capital expenditure program.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio declines over the period, dropping from 1.88 in 2020 to 1.36 in 2024. This ratio measures the efficiency with which fixed assets generate revenue. The downward trend implies that despite rising revenues, the growth in fixed assets is outpacing revenue expansion, indicating potential underutilization of assets or a strategic medium-term focus on asset buildup ahead of anticipated future revenue growth.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Meta Platforms Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Operating lease right-of-use assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The financial data over the five-year period demonstrates distinct patterns in revenue, assets, and efficiency metrics.
- Revenue
- Revenue showed a general upward trajectory, increasing from US$85,965 million in 2020 to US$164,501 million in 2024. This represents nearly a doubling of revenue over the period. There was a noticeable surge between 2023 and 2024, when revenue increased by approximately 22%, indicating robust growth momentum in the most recent year.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease right-of-use assets, also expanded significantly, rising from US$54,981 million in 2020 to US$136,268 million in 2024. This suggests considerable investment in fixed assets or leased assets. The increase was steady and marked, with a somewhat accelerated rise between 2022 and 2024, reflecting ongoing capital expenditures over time.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- The net fixed asset turnover ratio experienced a declining trend. Starting at 1.56 in 2020, it increased slightly to 1.69 in 2021, indicating improved asset utilization that year. However, from 2021 onwards, the ratio steadily decreased to 1.26 in 2022, then to 1.23 in 2023, and further down to 1.21 in 2024. This decline, despite rising revenues, implies a reduction in efficiency in generating revenue from fixed assets or right-of-use assets, potentially due to rapid asset base expansion outpacing revenue growth.
Overall, the data reveals strong revenue growth accompanied by significant expansion of the fixed asset base. However, the declining asset turnover ratio signals that the company’s asset utilization efficiency is diminishing, which may warrant a review of capital investment strategies to ensure optimal returns on asset deployment.
Total Asset Turnover
Meta Platforms Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Total Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates several notable trends over the five-year period ending December 31, 2024. Revenue experienced consistent growth overall, rising from 85,965 million USD in 2020 to 164,501 million USD in 2024. Although there was a slight dip in revenue in 2022 compared to 2021, the subsequent years show a strong recovery and notable increases.
Total assets steadily increased each year, signifying expansion and accumulation of resources or investments. The total assets grew from 159,316 million USD in 2020 to 276,054 million USD in 2024, demonstrating a substantial increase of over 70% during this period.
The total asset turnover ratio, which measures the efficiency of asset use to generate revenue, showed some fluctuations. Starting at 0.54 in 2020, it increased significantly to 0.71 in 2021, suggesting improved asset utilization. However, in the following years, the ratio decreased to 0.63 in 2022 and continued a slight downward trend to 0.59 and 0.60 in 2023 and 2024 respectively. This indicates that despite increasing assets and revenues, the rate at which assets are used to generate revenue has somewhat declined after peaking in 2021.
- Revenue
- Overall strong upward trajectory with a brief dip in 2022, followed by recovery.
- Total assets
- Consistent growth reflecting significant asset accumulation and expansion.
- Total asset turnover
- Improved efficiency through 2021, then gradual decline indicating a reduced rate of revenue generation from assets.
Equity Turnover
Meta Platforms Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Equity Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Equity Turnover, Industry | ||||||
| Communication Services | ||||||
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).
1 2024 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals significant developments over the analyzed period. Revenue demonstrated a generally upward trajectory, growing from 85,965 million US dollars in 2020 to 164,501 million US dollars in 2024. Notably, there was a peak in revenue in 2021 at 117,929 million US dollars, followed by a slight decline in 2022 to 116,609 million US dollars, before resuming a strong growth trend through 2023 and 2024.
Stockholders' equity exhibited a moderately stable pattern with some fluctuations. It slightly decreased from 128,290 million US dollars in 2020 to 124,879 million US dollars in 2021, then recovered to 125,713 million US dollars in 2022. Thereafter, equity increased more substantially to 153,168 million US dollars in 2023 and continued to rise to 182,637 million US dollars by 2024. This upward movement in stockholders' equity in the last two years highlights improvements in the company’s retained earnings or capital base.
The equity turnover ratio, which measures the efficiency of utilizing equity to generate revenue, varied within a narrow range. Starting at 0.67 in 2020, it increased markedly to 0.94 in 2021 and remained quite stable at 0.93 in 2022. In 2023, the ratio decreased slightly to 0.88 and then modestly increased again to 0.9 in 2024. The fluctuations within this range suggest relatively consistent efficiency in equity utilization despite revenue and equity amount changes.
- Summary of trends
- Revenue saw strong overall growth, particularly after 2022, signaling business expansion or increased market penetration.
- Stockholders' equity showed initial minor decline followed by sustained growth from 2022 onward, indicating strengthening financial position.
- Equity turnover ratio remained stable around 0.9 after a notable rise post-2020, reflecting consistent asset utilization efficiency.