Analysis of Geographic Areas
Meta Platforms Inc. operates in 2 regions: United States and Rest of the world.
Area Asset Turnover
Meta Platforms Inc., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 0.43 | 0.51 | 0.54 | 0.62 | 0.87 |
| Rest of the world | 5.39 | 5.58 | 4.74 | 4.38 | 4.81 |
Based on: 10-K (reporting date: 2025-12-31), 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).
An examination of area asset turnover reveals divergent performance between the United States and the Rest of the World over the five-year period. The United States demonstrates a consistent decline in asset turnover, while the Rest of the World exhibits a more volatile, but generally increasing, trend.
- United States
- Asset turnover in the United States decreased steadily from 0.87 in 2021 to 0.43 in 2025. This represents a substantial reduction, indicating a diminishing ability to generate sales from its asset base within this region. The rate of decline appears to be slowing, with smaller decreases observed in later years, but the overall trend remains negative.
- Rest of the World
- Asset turnover for the Rest of the World began at 4.81 in 2021, decreased to 4.38 in 2022, then recovered to 4.74 in 2023. A notable increase occurred between 2023 and 2024, reaching 5.58, followed by a slight decrease to 5.39 in 2025. This suggests a more efficient utilization of assets in the Rest of the World compared to the United States, and a generally improving trend, despite some fluctuation. The 2024 peak indicates a period of particularly strong sales generation relative to assets held in this region.
The contrasting trends suggest a potential shift in the company’s operational efficiency across geographic areas. While asset utilization is declining in the United States, the Rest of the World is demonstrating increasing efficiency, albeit with some variability. Further investigation into the factors driving these differences, such as regional sales growth, asset composition, and operational strategies, would be beneficial.
Area Asset Turnover: United States
Meta Platforms Inc.; United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 74,780) | 59,730) | 49,780) | 47,200) | 48,380) |
| Long-lived assets | 173,390) | 117,478) | 91,940) | 76,334) | 55,497) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.43 | 0.51 | 0.54 | 0.62 | 0.87 |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 74,780 ÷ 173,390 = 0.43
The financial performance within the United States reveals a declining trend in asset utilization efficiency between 2021 and 2025. Revenue exhibited initial fluctuations followed by substantial growth, while long-lived assets consistently increased over the same period. This combination resulted in a decreasing area asset turnover ratio.
- Revenue
- Revenue in the United States experienced a slight decrease from US$48,380 million in 2021 to US$47,200 million in 2022. Subsequently, revenue increased to US$49,780 million in 2023, followed by more significant growth to US$59,730 million in 2024 and reaching US$74,780 million in 2025. This indicates a strengthening revenue generation capability in later years.
- Long-lived Assets
- Long-lived assets demonstrated a consistent upward trajectory throughout the analyzed period. Starting at US$55,497 million in 2021, these assets grew to US$76,334 million in 2022, US$91,940 million in 2023, US$117,478 million in 2024, and ultimately reached US$173,390 million in 2025. This continuous investment in long-lived assets suggests expansion and potential future growth initiatives.
- Area Asset Turnover
- The area asset turnover ratio, a measure of how efficiently assets are used to generate revenue, decreased from 0.87 in 2021 to 0.62 in 2022. This downward trend continued, with the ratio falling to 0.54 in 2023, 0.51 in 2024, and further declining to 0.43 in 2025. This indicates that a greater investment in assets is required to generate each dollar of revenue in the United States, suggesting diminishing returns on asset utilization. While revenue is increasing, the rate of asset growth is outpacing revenue growth, leading to the reduced turnover.
The increasing asset base, coupled with the declining asset turnover ratio, warrants further investigation into the efficiency of asset allocation and utilization within the United States. The substantial revenue growth in the later years does not fully offset the impact of increased asset investment on the turnover ratio.
Area Asset Turnover: Rest of the world
Meta Platforms Inc.; Rest of the world; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenue | 126,186) | 104,771) | 85,122) | 69,409) | 69,549) |
| Long-lived assets | 23,414) | 18,790) | 17,941) | 15,857) | 14,467) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 5.39 | 5.58 | 4.74 | 4.38 | 4.81 |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 126,186 ÷ 23,414 = 5.39
Analysis of the Rest of the World geographic area reveals a generally positive trend in revenue generation relative to long-lived asset investment between 2021 and 2025. Revenue exhibited consistent growth over the period, while long-lived assets also increased, though at a comparatively slower pace. This dynamic is reflected in the area asset turnover ratio.
- Revenue
- Revenue for the Rest of the World area demonstrated an initial slight decrease from US$69,549 million in 2021 to US$69,409 million in 2022. However, subsequent years show substantial growth, reaching US$85,122 million in 2023, US$104,771 million in 2024, and US$126,186 million in 2025. This indicates a strengthening of the company’s revenue-generating capabilities within this geographic area.
- Long-lived assets
- Long-lived assets experienced a steady increase throughout the analyzed period. From US$14,467 million in 2021, they rose to US$15,857 million in 2022, US$17,941 million in 2023, US$18,790 million in 2024, and US$23,414 million in 2025. While consistently increasing, the rate of growth in long-lived assets appears to be less pronounced than that of revenue, particularly in the later years.
- Area asset turnover
- The area asset turnover ratio, which measures revenue generated per dollar of long-lived assets, decreased from 4.81 in 2021 to 4.38 in 2022. The ratio then recovered to 4.74 in 2023 and increased significantly to 5.58 in 2024. In 2025, the ratio slightly decreased to 5.39. This suggests an improving efficiency in asset utilization for revenue generation, particularly between 2023 and 2024, despite a minor pullback in the most recent year. The 2025 value remains higher than the 2021 and 2022 figures.
Overall, the Rest of the World area demonstrates a positive trajectory in its ability to generate revenue from its asset base. The increasing revenue coupled with a generally improving asset turnover ratio suggests effective capital allocation and operational performance within this region.
Revenue
Meta Platforms Inc., revenue by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 74,780) | 59,730) | 49,780) | 47,200) | 48,380) |
| Rest of the world | 126,186) | 104,771) | 85,122) | 69,409) | 69,549) |
| Total | 200,966) | 164,501) | 134,902) | 116,609) | 117,929) |
Based on: 10-K (reporting date: 2025-12-31), 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).
Revenue performance demonstrates distinct trends across geographic areas over the five-year period. Overall, total revenue exhibits a consistent upward trajectory, though with varying growth rates. A detailed examination of regional contributions reveals differing patterns in the United States and the rest of the world.
- United States Revenue
- Revenue from the United States experienced a slight decrease between 2021 and 2022, declining from US$48,380 million to US$47,200 million. However, subsequent years show a strong recovery and growth, reaching US$49,780 million in 2023, US$59,730 million in 2024, and US$74,780 million in 2025. This indicates a resurgence in domestic revenue generation, with accelerating growth in the later years of the period.
- Rest of the World Revenue
- Revenue from the rest of the world remained relatively stable between 2021 and 2022, fluctuating minimally around US$69.5 billion. A significant increase is observed from 2022 to 2023, with revenue rising to US$85,122 million. This growth continues through 2024 and 2025, reaching US$104,771 million and US$126,186 million respectively. The rest of the world consistently contributes a substantial portion of total revenue and demonstrates a robust growth pattern.
- Total Revenue Composition
- In 2021, the United States accounted for approximately 41% of total revenue, while the rest of the world contributed 59%. By 2025, the United States’ share decreased to approximately 37%, while the rest of the world’s share increased to 63%. This shift suggests a growing reliance on international markets for overall revenue growth. Total revenue increased from US$117,929 million in 2021 to US$200,966 million in 2025, representing a substantial overall increase.
- Growth Rates
- The period between 2021 and 2022 shows a slight overall revenue decline. However, from 2022 to 2023, total revenue increased by approximately 15.7%. This growth accelerated between 2023 and 2024, with a 21.7% increase, and continued at a similar pace between 2024 and 2025, with a 22.1% increase. The rest of the world consistently demonstrates higher growth rates than the United States, particularly in the later years of the period.
The observed trends indicate a strategic shift towards increased international revenue contribution, coupled with a strong recovery and growth in the domestic market. The accelerating growth rates in both regions, particularly in the rest of the world, suggest positive momentum for future revenue performance.
Long-lived assets
Meta Platforms Inc., long-lived assets by geographic area
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | 173,390) | 117,478) | 91,940) | 76,334) | 55,497) |
| Rest of the world | 23,414) | 18,790) | 17,941) | 15,857) | 14,467) |
| Total | 196,804) | 136,268) | 109,881) | 92,191) | 69,964) |
Based on: 10-K (reporting date: 2025-12-31), 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).
Long-lived assets exhibited substantial growth across all geographic areas examined between December 31, 2021, and December 31, 2025. The United States consistently represents the largest portion of these assets, and demonstrates a significantly higher rate of increase compared to the Rest of the World.
- United States
- Long-lived assets in the United States increased from US$55,497 million in 2021 to US$173,390 million in 2025. This represents a cumulative increase of approximately 212.3%. The growth rate accelerated over the period, with larger absolute increases observed in later years. Specifically, the increase from 2023 to 2024 (US$25,538 million) was greater than the increase from 2021 to 2022 (US$20,837 million).
- Rest of the World
- Long-lived assets in the Rest of the World increased from US$14,467 million in 2021 to US$23,414 million in 2025. This represents a cumulative increase of approximately 61.8%. While consistently growing, the rate of increase is considerably slower than that observed in the United States. The absolute increases were relatively stable across the examined period.
- Total Assets
- Total long-lived assets grew from US$69,964 million in 2021 to US$196,804 million in 2025, representing a cumulative increase of approximately 181.7%. The overall growth trend mirrors the growth observed in the United States, indicating that the United States is the primary driver of the total asset expansion.
The disparity in growth rates between the United States and the Rest of the World suggests a strategic focus on investment within the United States. This could be due to various factors, including higher potential returns, lower risk, or specific business initiatives concentrated in that region. Continued monitoring of these trends is recommended to assess the long-term implications of this geographic investment pattern.