Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Meta Platforms Inc., liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
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).
- Current Ratio
- The current ratio shows a declining trend from 5.05 in 2020 to 2.2 in 2022, indicating a reduction in the company's ability to cover short-term liabilities with current assets. However, post-2022, the ratio improves to 2.67 in 2023 and further to 2.98 in 2024, suggesting a recovery in liquidity position, though still below the 2020 level.
- Quick Ratio
- The quick ratio, which excludes inventory from current assets, follows a similar pattern to the current ratio. It decreases from 4.89 in 2020 to 2.01 in 2022, highlighting a diminishing capacity to meet immediate liabilities with the most liquid assets. Subsequently, the ratio rises to 2.55 in 2023 and 2.82 in 2024, reflecting an improving liquidity stance but not reaching the high levels observed in 2020.
- Cash Ratio
- The cash ratio, focusing strictly on cash and cash equivalents relative to current liabilities, declines from 4.14 in 2020 to 1.51 in 2022, showing a significant reduction in the cash buffer. The ratio then recovers to 2.05 in 2023 and further to 2.32 in 2024, indicating an enhanced liquidity position, though still lower than the initial 2020 level.
Current Ratio
Meta Platforms Inc., current ratio 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) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Current Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| Current Ratio, 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
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit a fluctuating trend over the analyzed periods. Beginning at US$75,670 million in 2020, there is a decline in the subsequent two years to US$66,666 million in 2021 and US$59,549 million in 2022. However, the value significantly recovers in the following years, reaching US$85,365 million in 2023 and increasing further to US$100,045 million in 2024. This indicates a recovery phase with substantial growth after the initial decrease.
- Current Liabilities
- Current liabilities consistently increase over the five-year span. Starting from US$14,981 million in 2020, there is a steady rise each year to US$21,135 million in 2021, US$27,026 million in 2022, US$31,960 million in 2023, and finally reaching US$33,596 million in 2024. This upward trajectory signals growing short-term obligations the company faces year over year.
- Current Ratio
- The current ratio demonstrates a distinct pattern. Initially very strong at 5.05 in 2020, it declines markedly to 3.15 in 2021 and further to 2.2 in 2022, suggesting a reduction in liquidity relative to short-term liabilities during this period. Nonetheless, the ratio rebounds to 2.67 in 2023 and improves further to 2.98 in 2024, reflecting a gradual strengthening in the company's ability to cover its short-term liabilities with current assets.
Quick Ratio
Meta Platforms Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | ||||||
| Marketable securities | ||||||
| Accounts receivable, net | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Quick Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| Quick Ratio, 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
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Quick Assets
- The value of total quick assets experienced a decline from 73,289 million USD at the end of 2020 to 54,204 million USD in 2022. However, there was a notable recovery in 2023 and 2024, reaching 81,572 million USD and 94,809 million USD respectively. This indicates a significant increase in liquid assets in the most recent two years after a period of contraction.
- Current Liabilities
- Current liabilities showed a consistent upward trend over the five-year period. Starting at 14,981 million USD in 2020, liabilities increased steadily each year, reaching 33,596 million USD by the end of 2024. This suggests a growing obligation within the company’s short-term financial structure.
- Quick Ratio
- The quick ratio, which measures the ability to cover current liabilities with quick assets, declined sharply from 4.89 in 2020 to 2.01 in 2022, indicating a decrease in short-term liquidity relative to liabilities. Nevertheless, the ratio improved in the following years, rising to 2.55 in 2023 and 2.82 in 2024. Although liquidity remains lower than in 2020, the trend suggests strengthening financial resilience and better coverage of immediate liabilities in recent periods.
Cash Ratio
Meta Platforms Inc., cash ratio 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) | ||||||
| Cash and cash equivalents | ||||||
| Marketable securities | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Cash Ratio, Sector | ||||||
| Media & Entertainment | ||||||
| Cash Ratio, 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
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total cash assets
- The total cash assets experienced a decline from 61,954 million US dollars at the end of 2020 to 40,738 million US dollars by the end of 2022. Following this decrease, there was a significant rebound, with cash assets increasing to 65,403 million in 2023 and further rising to 77,815 million in 2024. This pattern indicates a period of cash asset reduction over the first three years, succeeded by a strong recovery and growth in the last two years.
- Current liabilities
- Current liabilities showed a consistently upward trend throughout the five-year period. Starting at 14,981 million US dollars in 2020, liabilities increased steadily each year, reaching 33,596 million US dollars by the end of 2024. The rate of increase appears moderate but continuous, suggesting growing short-term obligations.
- Cash ratio
- The cash ratio, reflecting the company's liquidity position relative to current liabilities, started at a high level of 4.14 in 2020. It then dropped notably to 1.51 by 2022, indicating a reduction in cash available per unit of current liability during this period. Subsequently, the ratio improved, reaching 2.32 in 2024. This improvement corresponds with the recovery in total cash assets, although the ratio remains below the initial 2020 level. Overall, the cash ratio trend points to fluctuating liquidity with a mid-period dip and later partial recovery.