Stock Analysis on Net
Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Meta Platforms Inc., balance sheet: goodwill and intangible assets

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Goodwill 20,654 20,306 19,197 19,050 18,715
Acquired users — — 2,057 2,057 2,056
Acquired technology 478 507 1,412 1,297 1,158
Acquired patents 287 380 827 805 805
Other 28 86 820 859 797
Finite-lived assets, gross carrying amount 793 973 5,116 5,018 4,816
Accumulated amortization (430) (458) (4,748) (4,395) (3,922)
Finite-lived assets, net carrying amount 363 515 368 623 894
Indefinite-lived assets 425 382 266 — —
Intangible assets, net 788 897 634 623 894
Goodwill and intangible assets 21,442 21,203 19,831 19,673 19,609

Based on: 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).

Item Description The company
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Meta Platforms Inc. goodwill increased from 2021 to 2022 and from 2022 to 2023.
Intangible assets, net Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Meta Platforms Inc. intangible assets, net increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Goodwill and intangible assets Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Meta Platforms Inc. goodwill and intangible assets increased from 2021 to 2022 and from 2022 to 2023.

Adjustments to Financial Statements: Removal of Goodwill

Meta Platforms Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 229,623 185,727 165,987 159,316 133,376
Less: Goodwill 20,654 20,306 19,197 19,050 18,715
Total assets (adjusted) 208,969 165,421 146,790 140,266 114,661
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 153,168 125,713 124,879 128,290 101,054
Less: Goodwill 20,654 20,306 19,197 19,050 18,715
Stockholders’ equity (adjusted) 132,514 105,407 105,682 109,240 82,339

Based on: 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).

Meta Platforms Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Meta Platforms Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total Asset Turnover
Reported total asset turnover 0.59 0.63 0.71 0.54 0.53
Adjusted total asset turnover 0.65 0.70 0.80 0.61 0.62
Financial Leverage
Reported financial leverage 1.50 1.48 1.33 1.24 1.32
Adjusted financial leverage 1.58 1.57 1.39 1.28 1.39
Return on Equity (ROE)
Reported ROE 25.53% 18.45% 31.53% 22.72% 18.29%
Adjusted ROE 29.50% 22.01% 37.25% 26.68% 22.45%
Return on Assets (ROA)
Reported ROA 17.03% 12.49% 23.72% 18.29% 13.86%
Adjusted ROA 18.71% 14.02% 26.82% 20.78% 16.12%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Meta Platforms Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
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.		 Meta Platforms Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Meta Platforms Inc. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Meta Platforms Inc. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Meta Platforms Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Revenue 134,902 116,609 117,929 85,965 70,697
Total assets 229,623 185,727 165,987 159,316 133,376
Activity Ratio
Total asset turnover1 0.59 0.63 0.71 0.54 0.53
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenue 134,902 116,609 117,929 85,965 70,697
Adjusted total assets 208,969 165,421 146,790 140,266 114,661
Activity Ratio
Adjusted total asset turnover2 0.65 0.70 0.80 0.61 0.62

Based on: 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).

2023 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 134,902 ÷ 229,623 = 0.59

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 134,902 ÷ 208,969 = 0.65

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Meta Platforms Inc. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets 229,623 185,727 165,987 159,316 133,376
Stockholders’ equity 153,168 125,713 124,879 128,290 101,054
Solvency Ratio
Financial leverage1 1.50 1.48 1.33 1.24 1.32
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 208,969 165,421 146,790 140,266 114,661
Adjusted stockholders’ equity 132,514 105,407 105,682 109,240 82,339
Solvency Ratio
Adjusted financial leverage2 1.58 1.57 1.39 1.28 1.39

Based on: 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).

2023 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 229,623 ÷ 153,168 = 1.50

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 208,969 ÷ 132,514 = 1.58

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.		 Meta Platforms Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income 39,098 23,200 39,370 29,146 18,485
Stockholders’ equity 153,168 125,713 124,879 128,290 101,054
Profitability Ratio
ROE1 25.53% 18.45% 31.53% 22.72% 18.29%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 39,098 23,200 39,370 29,146 18,485
Adjusted stockholders’ equity 132,514 105,407 105,682 109,240 82,339
Profitability Ratio
Adjusted ROE2 29.50% 22.01% 37.25% 26.68% 22.45%

Based on: 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).

2023 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 39,098 ÷ 153,168 = 25.53%

2 Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 39,098 ÷ 132,514 = 29.50%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Meta Platforms Inc. adjusted ROE deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income 39,098 23,200 39,370 29,146 18,485
Total assets 229,623 185,727 165,987 159,316 133,376
Profitability Ratio
ROA1 17.03% 12.49% 23.72% 18.29% 13.86%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 39,098 23,200 39,370 29,146 18,485
Adjusted total assets 208,969 165,421 146,790 140,266 114,661
Profitability Ratio
Adjusted ROA2 18.71% 14.02% 26.82% 20.78% 16.12%

Based on: 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).

2023 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 39,098 ÷ 229,623 = 17.03%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 39,098 ÷ 208,969 = 18.71%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Meta Platforms Inc. adjusted ROA deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.