Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Meta Platforms Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The analysis of the liquidity ratios over the periods reveals a general downward trend followed by a partial recovery and subsequent fluctuations across the recent quarters.
- Current Ratio
- This ratio demonstrates a steady decline from a high of 6.08 at the end of March 2021 to a low of 1.97 in June 2025. The initial steep decrease until March 2023 reflects a reduction in the company's short-term asset coverage of its liabilities. After reaching roughly 2.07 in March 2023, there is a modest recovery, with values fluctuating between 2.32 and 2.98 until the end of 2024, before decreasing again in the first half of 2025.
- Quick Ratio
- The quick ratio follows a similar trajectory to the current ratio. It declines from 5.86 in March 2021 to 1.71 in June 2025, indicating a reduction in highly liquid assets relative to current liabilities. The ratio bottoms out in mid-2025 after showing intermittent increases between March 2023 and December 2024. This pattern suggests a cautious improvement in liquid asset management during this period before the renewed decline.
- Cash Ratio
- The cash ratio also declines from 5.05 in March 2021 to 1.26 in June 2025, reflecting a decrease in cash and cash equivalents relative to current liabilities. Despite the overall downward trend, there is a smoother and more consistent partial recovery from March 2023 to December 2024, where the ratio rises from approximately 1.48 to around 2.32. This improvement signals increased cash reserves or reduced short-term liabilities during that time, though this reverses in the first half of 2025.
Overall, the company experienced a notable erosion of liquidity from early 2021 through early 2023, which may suggest increased short-term obligations or a decline in liquid assets. However, partial recoveries seen especially from early 2023 to late 2024 indicate efforts to strengthen liquidity positions. The subsequent declines in the current and quick ratios in mid-2025 merit attention as they may imply emerging liquidity pressures.
Current Ratio
Meta Platforms Inc., current ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Current assets | 73,613) | 90,227) | 100,045) | 91,067) | 76,431) | 75,330) | 85,365) | 78,378) | 69,560) | 52,483) | 59,549) | 58,315) | 55,987) | 59,265) | 66,666) | 75,421) | 80,697) | 77,322) | ||||||
| Current liabilities | 37,305) | 33,890) | 33,596) | 33,330) | 27,004) | 28,101) | 31,960) | 30,531) | 29,921) | 25,381) | 27,026) | 22,687) | 22,217) | 21,086) | 21,135) | 17,812) | 14,874) | 12,717) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Current ratio1 | 1.97 | 2.66 | 2.98 | 2.73 | 2.83 | 2.68 | 2.67 | 2.57 | 2.32 | 2.07 | 2.20 | 2.57 | 2.52 | 2.81 | 3.15 | 4.23 | 5.43 | 6.08 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 1.90 | 1.77 | 1.84 | 1.95 | 2.08 | 2.15 | 2.10 | 2.04 | 2.17 | 2.35 | 2.38 | 2.52 | 2.81 | 2.87 | 2.93 | 2.98 | 3.15 | 3.10 | ||||||
| Comcast Corp. | 0.91 | 0.65 | 0.68 | 0.72 | 0.66 | 0.59 | 0.60 | 0.70 | 0.76 | 0.69 | 0.78 | 0.84 | 0.88 | 0.86 | 0.85 | 1.03 | 0.92 | 0.96 | ||||||
| Netflix Inc. | 1.34 | 1.20 | 1.22 | 1.13 | 0.95 | 1.07 | 1.12 | 1.29 | 1.33 | 1.26 | 1.17 | 1.14 | 1.05 | 1.05 | 0.95 | 1.17 | 1.23 | 1.27 | ||||||
| Trade Desk Inc. | 1.71 | 1.81 | 1.86 | 1.85 | 1.80 | 1.79 | 1.72 | 1.87 | 1.87 | 1.90 | 1.90 | 1.91 | 1.92 | 1.91 | 1.71 | 1.76 | 1.77 | 1.72 | ||||||
| Walt Disney Co. | 0.67 | 0.68 | 0.73 | 0.72 | 0.75 | 0.84 | 1.05 | 1.07 | 1.01 | 0.99 | 1.00 | 1.02 | 1.06 | 1.10 | 1.08 | 1.24 | 1.23 | 1.31 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 73,613 ÷ 37,305 = 1.97
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in liquidity management as reflected by current assets, current liabilities, and the resulting current ratio over the observed periods.
- Current Assets
- Current assets exhibit fluctuation throughout the quarters, starting from a high point of approximately 77.3 billion US dollars at the beginning of 2021, with a general declining trend into early 2022, hitting a low near 56 billion US dollars mid-2022. Subsequently, there is a recovery and upward trend peaking around 100 billion US dollars by late 2024 before decreasing again towards mid-2025 to approximately 73.6 billion US dollars.
- Current Liabilities
- Current liabilities show a more consistent upward movement from about 12.7 billion US dollars in early 2021 to roughly 37.3 billion US dollars by mid-2025. This indicates increasing short-term obligations over time, with no significant periods of decline, suggesting pressure on the company’s liquidity demands.
- Current Ratio
- The current ratio, which is an indicator of short-term financial stability and ability to cover current liabilities with current assets, follows a markedly declining trend in the first half of the data set. It drops from about 6.08 in March 2021 down to 2.2 by the end of 2021, reflecting a reduction in liquidity buffer. Following this, the ratio stabilizes and even improves slightly to a peak near 2.98 in late 2024, suggesting enhanced liquidity management during this period. However, by mid-2025, it declines once more to approximately 1.97, nearing the threshold of minimal short-term financial safety.
Overall, the patterns indicate a company initially well-positioned in terms of liquidity, facing challenges with rising liabilities and shrinking assets through 2021-2022, followed by a recovery phase. Despite the moderation in the current ratio after 2022, the continuing increase in liabilities coupled with fluctuations in current assets points towards tighter short-term financial conditions approaching mid-2025. The company appears to navigate these ups and downs with some success, but the downward turn in liquidity ratios towards the latest quarters warrants monitoring to ensure ongoing ability to meet short-term obligations effectively.
Quick Ratio
Meta Platforms Inc., quick ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cash and cash equivalents | 12,005) | 28,750) | 43,889) | 43,852) | 32,045) | 32,307) | 41,862) | 36,890) | 28,785) | 11,551) | 14,681) | 14,308) | 12,681) | 14,886) | 16,601) | 14,496) | 16,186) | 19,513) | ||||||
| Marketable securities | 35,066) | 41,480) | 33,926) | 27,048) | 26,035) | 25,813) | 23,541) | 24,233) | 24,661) | 25,888) | 26,057) | 27,468) | 27,808) | 29,004) | 31,397) | 43,579) | 47,894) | 44,706) | ||||||
| Accounts receivable, net | 16,561) | 14,514) | 16,994) | 14,700) | 14,505) | 13,430) | 16,169) | 12,944) | 12,511) | 11,044) | 13,466) | 11,227) | 11,525) | 11,390) | 14,039) | 12,088) | 11,698) | 10,276) | ||||||
| Total quick assets | 63,632) | 84,744) | 94,809) | 85,600) | 72,585) | 71,550) | 81,572) | 74,067) | 65,957) | 48,483) | 54,204) | 53,003) | 52,014) | 55,280) | 62,037) | 70,163) | 75,778) | 74,495) | ||||||
| Current liabilities | 37,305) | 33,890) | 33,596) | 33,330) | 27,004) | 28,101) | 31,960) | 30,531) | 29,921) | 25,381) | 27,026) | 22,687) | 22,217) | 21,086) | 21,135) | 17,812) | 14,874) | 12,717) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Quick ratio1 | 1.71 | 2.50 | 2.82 | 2.57 | 2.69 | 2.55 | 2.55 | 2.43 | 2.20 | 1.91 | 2.01 | 2.34 | 2.34 | 2.62 | 2.94 | 3.94 | 5.09 | 5.86 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 1.72 | 1.60 | 1.66 | 1.76 | 1.90 | 1.98 | 1.94 | 1.87 | 2.02 | 2.20 | 2.22 | 2.29 | 2.62 | 2.72 | 2.79 | 2.85 | 3.01 | 2.94 | ||||||
| Comcast Corp. | 0.71 | 0.51 | 0.53 | 0.60 | 0.54 | 0.49 | 0.50 | 0.56 | 0.61 | 0.55 | 0.62 | 0.63 | 0.68 | 0.71 | 0.71 | 0.89 | 0.80 | 0.84 | ||||||
| Netflix Inc. | 0.94 | 0.86 | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | 0.71 | 0.94 | 0.99 | 1.06 | ||||||
| Trade Desk Inc. | 1.68 | 1.79 | 1.83 | 1.81 | 1.75 | 1.77 | 1.69 | 1.84 | 1.84 | 1.87 | 1.87 | 1.88 | 1.87 | 1.85 | 1.65 | 1.70 | 1.68 | 1.62 | ||||||
| Walt Disney Co. | 0.54 | 0.55 | 0.54 | 0.53 | 0.57 | 0.69 | 0.85 | 0.87 | 0.83 | 0.83 | 0.83 | 0.87 | 0.91 | 0.98 | 0.94 | 1.07 | 1.07 | 1.17 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 63,632 ÷ 37,305 = 1.71
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's liquidity position over the observed periods. There is a fluctuating pattern in total quick assets, current liabilities, and the quick ratio, indicating changes in short-term financial health and management of liquid assets relative to obligations.
- Total Quick Assets
- The total quick assets exhibit a generally declining trend from the beginning of the period until the first quarter of 2023, falling from approximately 74,495 million USD to 48,483 million USD. Subsequently, there is a recovery starting mid-2023, peaking at around 94,809 million USD by the end of 2024, followed by a decline again in early 2025 to about 63,632 million USD. This shows volatility with periods of significant recovery and contraction.
- Current Liabilities
- Current liabilities show a steady increase throughout the period. Starting at approximately 12,717 million USD, liabilities rise consistently, reaching 37,305 million USD by mid-2025. This represents a near tripling of short-term obligations over the span. The persistent upward trend indicates growing current liabilities that may exert pressure on liquidity unless matched by adequate asset growth.
- Quick Ratio
- The quick ratio declines sharply from a high of 5.86 at the start to a low of 1.71 by mid-2025. Initial values suggest an extremely strong liquidity position, but the ratio steadily decreases, reflecting that quick assets are becoming less sufficient relative to current liabilities. Temporary improvements are observed between early 2023 and late 2024, where the ratio increases from 1.91 up to around 2.82, but this is followed by a rapid decline again. The trend towards a lower quick ratio suggests weakening short-term financial stability.
Overall, the data indicates that although there are intermittent recoveries in liquid asset levels, current liabilities are increasing at a faster pace, leading to a decreasing quick ratio. This could highlight a growing risk in meeting short-term obligations without relying on inventory or other less liquid assets. Management should monitor this trend and consider measures to improve liquidity and control liabilities to maintain a balanced financial position.
Cash Ratio
Meta Platforms Inc., cash ratio calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Cash and cash equivalents | 12,005) | 28,750) | 43,889) | 43,852) | 32,045) | 32,307) | 41,862) | 36,890) | 28,785) | 11,551) | 14,681) | 14,308) | 12,681) | 14,886) | 16,601) | 14,496) | 16,186) | 19,513) | ||||||
| Marketable securities | 35,066) | 41,480) | 33,926) | 27,048) | 26,035) | 25,813) | 23,541) | 24,233) | 24,661) | 25,888) | 26,057) | 27,468) | 27,808) | 29,004) | 31,397) | 43,579) | 47,894) | 44,706) | ||||||
| Total cash assets | 47,071) | 70,230) | 77,815) | 70,900) | 58,080) | 58,120) | 65,403) | 61,123) | 53,446) | 37,439) | 40,738) | 41,776) | 40,489) | 43,890) | 47,998) | 58,075) | 64,080) | 64,219) | ||||||
| Current liabilities | 37,305) | 33,890) | 33,596) | 33,330) | 27,004) | 28,101) | 31,960) | 30,531) | 29,921) | 25,381) | 27,026) | 22,687) | 22,217) | 21,086) | 21,135) | 17,812) | 14,874) | 12,717) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Cash ratio1 | 1.26 | 2.07 | 2.32 | 2.13 | 2.15 | 2.07 | 2.05 | 2.00 | 1.79 | 1.48 | 1.51 | 1.84 | 1.82 | 2.08 | 2.27 | 3.26 | 4.31 | 5.05 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 1.09 | 1.04 | 1.07 | 1.15 | 1.29 | 1.40 | 1.36 | 1.39 | 1.52 | 1.67 | 1.64 | 1.76 | 2.04 | 2.16 | 2.17 | 2.30 | 2.44 | 2.44 | ||||||
| Comcast Corp. | 0.30 | 0.20 | 0.18 | 0.23 | 0.17 | 0.16 | 0.15 | 0.19 | 0.22 | 0.17 | 0.17 | 0.20 | 0.25 | 0.30 | 0.30 | 0.44 | 0.42 | 0.49 | ||||||
| Netflix Inc. | 0.94 | 0.86 | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | 0.71 | 0.94 | 0.99 | 1.06 | ||||||
| Trade Desk Inc. | 0.57 | 0.65 | 0.67 | 0.66 | 0.60 | 0.62 | 0.55 | 0.71 | 0.70 | 0.73 | 0.71 | 0.74 | 0.73 | 0.71 | 0.53 | 0.56 | 0.53 | 0.54 | ||||||
| Walt Disney Co. | 0.17 | 0.16 | 0.17 | 0.17 | 0.20 | 0.23 | 0.46 | 0.41 | 0.37 | 0.31 | 0.40 | 0.42 | 0.45 | 0.48 | 0.51 | 0.59 | 0.60 | 0.64 | ||||||
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 47,071 ÷ 37,305 = 1.26
2 Click competitor name to see calculations.
The analysis of the quarterly financial metrics reveals several notable trends in the company's liquidity and short-term financial position over the reported periods.
- Total Cash Assets
- The total cash assets demonstrate a general downward trend from March 2021 through March 2022, decreasing from approximately $64.2 billion to about $43.9 billion. Although a modest recovery appears in the latter half of 2022, reaching close to $40.7 billion at year-end, a significant increase is observed in the first three quarters of 2023, with cash assets peaking near $65.4 billion at the end of December 2023. Following this peak, cash assets fluctuate, rising to approximately $77.8 billion by December 2024 before contracting sharply to around $47.1 billion by June 2025. This volatility suggests periods of both significant cash accumulation and depletion, possibly reflecting changes in operating cash flow, investments, or financing activities.
- Current Liabilities
- Current liabilities exhibit a steady upward trend over the entire period analyzed. Starting at roughly $12.7 billion in March 2021, liabilities climb progressively each quarter, reaching approximately $27 billion by December 2022. The upward trajectory continues in 2023 and into mid-2025, with current liabilities rising from about $25.4 billion in March 2023 to an estimated $37.3 billion by June 2025. This consistent increase in short-term obligations may indicate expanding operational scale, increased short-term borrowing, or rising payable balances.
- Cash Ratio
- The cash ratio, reflecting the company's ability to cover current liabilities with cash and cash equivalents, declines sharply from 5.05 in March 2021 to a low of around 1.26 by June 2025. The ratio decreases notably during 2021 and early 2022, indicating a reduction in liquidity relative to liabilities. It stabilizes somewhat between mid-2023 and late 2024, fluctuating near values slightly above 2, before falling again markedly in early 2025. The decline in the cash ratio over the long term suggests a less conservative liquidity position, with cash reserves growing at a slower pace than current liabilities or cash being used to fund non-liquid investments or operations.
Overall, the trends suggest that while the company has managed to maintain substantial cash reserves, there has been increasing pressure from rising current liabilities, which has led to a deterioration in the cash ratio. The wide fluctuations in cash assets, combined with steadily increasing liabilities, highlight the importance of ongoing monitoring of liquidity risk and working capital management.