Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Meta Platforms Inc., income tax expense (benefit), continuing operations

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Federal	4,934)	6,094)	4,971)	3,297)	4,321)
State	577)	874)	548)	523)	565)
Foreign	2,688)	1,928)	1,786)	1,211)	1,481)
Current tax expense	8,199)	8,896)	7,305)	5,031)	6,367)
Federal	67)	(2,776)	585)	(859)	(39)
State	123)	(405)	43)	(122)	19)
Foreign	(59)	(96)	(19)	(16)	(20)
Deferred tax expense (benefits)	131)	(3,277)	609)	(997)	(40)
Provision for income taxes	8,330)	5,619)	7,914)	4,034)	6,327)

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).

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Item	Description	The company
Current tax expense	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Meta Platforms Inc. current tax expense increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.
Deferred tax expense (benefits)	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Meta Platforms Inc. deferred tax expense (benefits) decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Provision for income taxes	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Meta Platforms Inc. provision for income taxes decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.

Meta Platforms Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
U.S. federal statutory income tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
State income taxes, net of federal benefit	1.10%	1.00%	1.00%	0.80%	1.80%
Share-based compensation	-0.60%	2.60%	-1.70%	-1.40%	3.80%
Research and development tax credits	-1.50%	-2.40%	-1.30%	-1.30%	-0.80%
Foreign-derived intangible income deduction	-4.30%	-7.00%	-3.50%	-1.90%	0.00%
Effect of non-U.S. operations	0.90%	3.00%	0.90%	-2.40%	-5.80%
Non-deductible FTC settlement accrual	0.00%	0.00%	0.00%	0.00%	4.50%
Research and development capitalization	0.00%	0.00%	0.00%	-3.00%	0.00%
Other	1.00%	1.30%	0.30%	0.40%	1.00%
Effective tax rate	17.60%	19.50%	16.70%	12.20%	25.50%

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).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Meta Platforms Inc. effective tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Meta Platforms Inc., components of deferred tax assets and liabilities

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Loss carryforwards	353)	234)	2,443)	2,437)	2,051)
Tax credit carryforwards	2,028)	1,576)	1,385)	1,055)	1,333)
Share-based compensation	459)	368)	319)	243)	135)
Accrued expenses and other liabilities	2,168)	1,627)	1,195)	1,108)	798)
Lease liabilities	3,752)	3,200)	2,597)	2,058)	1,999)
Capitalized research and development	9,292)	8,175)	1,691)	1,922)	—)
Unrealized losses in securities and investments	232)	489)	—)	—)	—)
Other	487)	621)	449)	340)	149)
Deferred tax assets	18,771)	16,290)	10,079)	9,163)	6,465)
Valuation allowance	(2,879)	(2,493)	(1,586)	(1,218)	(1,012)
Deferred tax assets, net of valuation allowance	15,892)	13,797)	8,493)	7,945)	5,453)
Depreciation and amortization	(8,320)	(6,296)	(4,425)	(3,811)	(2,387)
Right-of-use assets	(2,708)	(2,555)	(2,339)	(1,876)	(1,910)
Deferred tax liabilities	(11,028)	(8,851)	(6,764)	(5,687)	(4,297)
Net deferred tax assets (liabilities)	4,864)	4,946)	1,729)	2,258)	1,156)

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).

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Item	Description	The company
Deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Meta Platforms Inc. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets, net of valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Meta Platforms Inc. deferred tax assets, net of valuation allowance increased from 2021 to 2022 and from 2022 to 2023.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Meta Platforms Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Meta Platforms Inc., adjustments to financial statements

US$ in millions

	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: Noncurrent deferred tax assets, net	4,864)	4,946)	1,729)	2,258)	1,156)
Total assets (adjusted)	224,759)	180,781)	164,258)	157,058)	132,220)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	153,168)	125,713)	124,879)	128,290)	101,054)
Less: Net deferred tax assets (liabilities)	4,864)	4,946)	1,729)	2,258)	1,156)
Stockholders’ equity (adjusted)	148,304)	120,767)	123,150)	126,032)	99,898)
Adjustment to Net Income
Net income (as reported)	39,098)	23,200)	39,370)	29,146)	18,485)
Add: Deferred income tax expense (benefit)	131)	(3,277)	609)	(997)	(40)
Net income (adjusted)	39,229)	19,923)	39,979)	28,149)	18,445)

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

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Meta Platforms Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	28.98%	19.90%	33.38%	33.90%	26.15%
Adjusted net profit margin	29.08%	17.09%	33.90%	32.74%	26.09%
Total Asset Turnover
Reported total asset turnover	0.59	0.63	0.71	0.54	0.53
Adjusted total asset turnover	0.60	0.65	0.72	0.55	0.53
Financial Leverage
Reported financial leverage	1.50	1.48	1.33	1.24	1.32
Adjusted financial leverage	1.52	1.50	1.33	1.25	1.32
Return on Equity (ROE)
Reported ROE	25.53%	18.45%	31.53%	22.72%	18.29%
Adjusted ROE	26.45%	16.50%	32.46%	22.33%	18.46%
Return on Assets (ROA)
Reported ROA	17.03%	12.49%	23.72%	18.29%	13.86%
Adjusted ROA	17.45%	11.02%	24.34%	17.92%	13.95%

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 net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Meta Platforms Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
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 adjusted net income divided by adjusted shareholders’ equity.	Meta Platforms Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted 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

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	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)
Revenue	134,902)	116,609)	117,929)	85,965)	70,697)
Profitability Ratio
Net profit margin¹	28.98%	19.90%	33.38%	33.90%	26.15%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	39,229)	19,923)	39,979)	28,149)	18,445)
Revenue	134,902)	116,609)	117,929)	85,965)	70,697)
Profitability Ratio
Adjusted net profit margin²	29.08%	17.09%	33.90%	32.74%	26.09%

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 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 39,098 ÷ 134,902 = 28.98%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 39,229 ÷ 134,902 = 29.08%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Meta Platforms Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Revenue	134,902)	116,609)	117,929)	85,965)	70,697)
Adjusted total assets	224,759)	180,781)	164,258)	157,058)	132,220)
Activity Ratio
Adjusted total asset turnover²	0.60	0.65	0.72	0.55	0.53

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 ÷ 224,759 = 0.60

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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.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted total assets	224,759)	180,781)	164,258)	157,058)	132,220)
Adjusted stockholders’ equity	148,304)	120,767)	123,150)	126,032)	99,898)
Solvency Ratio
Adjusted financial leverage²	1.52	1.50	1.33	1.25	1.32

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
= 224,759 ÷ 148,304 = 1.52

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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.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	39,229)	19,923)	39,979)	28,149)	18,445)
Adjusted stockholders’ equity	148,304)	120,767)	123,150)	126,032)	99,898)
Profitability Ratio
Adjusted ROE²	26.45%	16.50%	32.46%	22.33%	18.46%

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 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 39,229 ÷ 148,304 = 26.45%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Meta Platforms Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	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 Deferred Taxes
Selected Financial Data (US$ in millions)
Adjusted net income	39,229)	19,923)	39,979)	28,149)	18,445)
Adjusted total assets	224,759)	180,781)	164,258)	157,058)	132,220)
Profitability Ratio
Adjusted ROA²	17.45%	11.02%	24.34%	17.92%	13.95%

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 × Adjusted net income ÷ Adjusted total assets
= 100 × 39,229 ÷ 224,759 = 17.45%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted 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. (NASDAQ:META)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

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

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)