Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

Analysis of Liquidity Ratios

Microsoft Excel

Liquidity Ratios (Summary)

Meta Platforms Inc., liquidity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Current ratio 2.67 2.20 3.15 5.05 4.40
Quick ratio 2.55 2.01 2.94 4.89 4.28
Cash ratio 2.05 1.51 2.27 4.14 3.64

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).

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Meta Platforms Inc. current ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Meta Platforms Inc. quick ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Meta Platforms Inc. cash ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Current Ratio

Meta Platforms Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Current assets 85,365 59,549 66,666 75,670 66,225
Current liabilities 31,960 27,026 21,135 14,981 15,053
Liquidity Ratio
Current ratio1 2.67 2.20 3.15 5.05 4.40
Benchmarks
Current Ratio, Competitors2
Alphabet Inc. 2.10 2.38 2.93 3.07 3.37
Charter Communications Inc. 0.31 0.33 0.29 0.40 0.52
Comcast Corp. 0.60 0.78 0.85 0.93 0.84
Netflix Inc. 1.12 1.17 0.95 1.25 0.90
Walt Disney Co. 1.05 1.00 1.08 1.32 0.90
Current Ratio, Sector
Media & Entertainment 1.58 1.67 1.95 2.25 2.02
Current Ratio, Industry
Communication Services 1.26 1.24 1.37 1.69 1.45

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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 85,365 ÷ 31,960 = 2.67

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Current ratio A liquidity ratio calculated as current assets divided by current liabilities. Meta Platforms Inc. current ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Quick Ratio

Meta Platforms Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cash and cash equivalents 41,862 14,681 16,601 17,576 19,079
Marketable securities 23,541 26,057 31,397 44,378 35,776
Accounts receivable, net 16,169 13,466 14,039 11,335 9,518
Total quick assets 81,572 54,204 62,037 73,289 64,373
 
Current liabilities 31,960 27,026 21,135 14,981 15,053
Liquidity Ratio
Quick ratio1 2.55 2.01 2.94 4.89 4.28
Benchmarks
Quick Ratio, Competitors2
Alphabet Inc. 1.94 2.22 2.79 2.95 3.21
Charter Communications Inc. 0.28 0.30 0.26 0.32 0.46
Comcast Corp. 0.50 0.62 0.71 0.81 0.55
Netflix Inc. 1.07 1.12 0.91 1.22 0.87
Walt Disney Co. 0.85 0.83 0.94 1.15 0.67
Quick Ratio, Sector
Media & Entertainment 1.45 1.51 1.81 2.12 1.83
Quick Ratio, Industry
Communication Services 1.08 1.05 1.19 1.49 1.22

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).

1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 81,572 ÷ 31,960 = 2.55

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Quick ratio A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. Meta Platforms Inc. quick ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Cash Ratio

Meta Platforms Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in millions)
Cash and cash equivalents 41,862 14,681 16,601 17,576 19,079
Marketable securities 23,541 26,057 31,397 44,378 35,776
Total cash assets 65,403 40,738 47,998 61,954 54,855
 
Current liabilities 31,960 27,026 21,135 14,981 15,053
Liquidity Ratio
Cash ratio1 2.05 1.51 2.27 4.14 3.64
Benchmarks
Cash Ratio, Competitors2
Alphabet Inc. 1.36 1.64 2.17 2.41 2.65
Charter Communications Inc. 0.05 0.05 0.05 0.10 0.28
Comcast Corp. 0.15 0.17 0.30 0.41 0.18
Netflix Inc. 0.81 0.76 0.71 1.05 0.73
Walt Disney Co. 0.46 0.40 0.51 0.67 0.17
Cash Ratio, Sector
Media & Entertainment 0.99 1.02 1.31 1.64 1.37
Cash Ratio, Industry
Communication Services 0.66 0.62 0.77 1.04 0.79

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).

1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 65,403 ÷ 31,960 = 2.05

2 Click competitor name to see calculations.

Liquidity ratio Description The company
Cash ratio A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. Meta Platforms Inc. cash ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.