Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

Analysis of Solvency Ratios

Microsoft Excel

Solvency Ratios (Summary)

Meta Platforms Inc., solvency ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity 0.12 0.08 0.00 0.00 0.00
Debt to equity (including operating lease liability) 0.25 0.22 0.12 0.09 0.11
Debt to capital 0.11 0.08 0.00 0.00 0.00
Debt to capital (including operating lease liability) 0.20 0.18 0.10 0.08 0.10
Debt to assets 0.08 0.06 0.00 0.00 0.00
Debt to assets (including operating lease liability) 0.17 0.15 0.09 0.07 0.08
Financial leverage 1.50 1.48 1.33 1.24 1.32
Coverage Ratios
Interest coverage 107.34 164.74 3,153.27 2,371.00 1,241.60
Fixed charge coverage 19.69 15.18 31.41 24.62 22.41

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).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Meta Platforms Inc. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Meta Platforms Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Meta Platforms Inc. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Meta Platforms Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Meta Platforms Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Meta Platforms Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Meta Platforms Inc. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Meta Platforms Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Meta Platforms Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Debt to Equity

Meta Platforms Inc., debt to equity 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)
Finance lease liabilities, current 90 129 75 54 55
Long-term debt 18,385 9,923
Finance lease liabilities, non-current 600 558 506 469 418
Total debt 19,075 10,610 581 523 473
 
Stockholders’ equity 153,168 125,713 124,879 128,290 101,054
Solvency Ratio
Debt to equity1 0.12 0.08 0.00 0.00 0.00
Benchmarks
Debt to Equity, Competitors2
Alphabet Inc. 0.05 0.06 0.06 0.07 0.02
Charter Communications Inc. 8.82 10.70 6.52 3.48 2.51
Comcast Corp. 1.17 1.17 0.99 1.15 1.24
Netflix Inc. 0.71 0.69 0.97 1.47 1.95
Walt Disney Co. 0.47 0.51 0.62 0.71 0.53
Debt to Equity, Sector
Media & Entertainment 0.45 0.48 0.46 0.50 0.48
Debt to Equity, Industry
Communication Services 0.72 0.76 0.75 0.75 0.70

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
Debt to equity = Total debt ÷ Stockholders’ equity
= 19,075 ÷ 153,168 = 0.12

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Meta Platforms Inc. debt to equity ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Equity (including Operating Lease Liability)

Meta Platforms Inc., debt to equity (including operating lease liability) 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)
Finance lease liabilities, current 90 129 75 54 55
Long-term debt 18,385 9,923
Finance lease liabilities, non-current 600 558 506 469 418
Total debt 19,075 10,610 581 523 473
Operating lease liabilities, current 1,623 1,367 1,127 1,023 800
Operating lease liabilities, non-current 17,226 15,301 12,746 9,631 9,524
Total debt (including operating lease liability) 37,924 27,278 14,454 11,177 10,797
 
Stockholders’ equity 153,168 125,713 124,879 128,290 101,054
Solvency Ratio
Debt to equity (including operating lease liability)1 0.25 0.22 0.12 0.09 0.11
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.11 0.12 0.11 0.13 0.08
Charter Communications Inc. 8.95 10.85 6.62 3.53 2.55
Comcast Corp. 1.25 1.26 1.06 1.20 1.29
Netflix Inc. 0.82 0.81 1.14 1.67 2.16
Walt Disney Co. 0.51 0.55 0.66 0.75 0.53
Debt to Equity (including Operating Lease Liability), Sector
Media & Entertainment 0.52 0.56 0.53 0.56 0.54
Debt to Equity (including Operating Lease Liability), Industry
Communication Services 0.86 0.91 0.88 0.88 0.81

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 37,924 ÷ 153,168 = 0.25

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Meta Platforms Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Capital

Meta Platforms Inc., debt to capital 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)
Finance lease liabilities, current 90 129 75 54 55
Long-term debt 18,385 9,923
Finance lease liabilities, non-current 600 558 506 469 418
Total debt 19,075 10,610 581 523 473
Stockholders’ equity 153,168 125,713 124,879 128,290 101,054
Total capital 172,243 136,323 125,460 128,813 101,527
Solvency Ratio
Debt to capital1 0.11 0.08 0.00 0.00 0.00
Benchmarks
Debt to Capital, Competitors2
Alphabet Inc. 0.05 0.06 0.06 0.06 0.02
Charter Communications Inc. 0.90 0.91 0.87 0.78 0.72
Comcast Corp. 0.54 0.54 0.50 0.53 0.55
Netflix Inc. 0.41 0.41 0.49 0.60 0.66
Walt Disney Co. 0.32 0.34 0.38 0.41 0.35
Debt to Capital, Sector
Media & Entertainment 0.31 0.32 0.32 0.33 0.33
Debt to Capital, Industry
Communication Services 0.42 0.43 0.43 0.43 0.41

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
Debt to capital = Total debt ÷ Total capital
= 19,075 ÷ 172,243 = 0.11

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Meta Platforms Inc. debt to capital ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Capital (including Operating Lease Liability)

Meta Platforms Inc., debt to capital (including operating lease liability) 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)
Finance lease liabilities, current 90 129 75 54 55
Long-term debt 18,385 9,923
Finance lease liabilities, non-current 600 558 506 469 418
Total debt 19,075 10,610 581 523 473
Operating lease liabilities, current 1,623 1,367 1,127 1,023 800
Operating lease liabilities, non-current 17,226 15,301 12,746 9,631 9,524
Total debt (including operating lease liability) 37,924 27,278 14,454 11,177 10,797
Stockholders’ equity 153,168 125,713 124,879 128,290 101,054
Total capital (including operating lease liability) 191,092 152,991 139,333 139,467 111,851
Solvency Ratio
Debt to capital (including operating lease liability)1 0.20 0.18 0.10 0.08 0.10
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.10 0.10 0.10 0.11 0.07
Charter Communications Inc. 0.90 0.92 0.87 0.78 0.72
Comcast Corp. 0.56 0.56 0.52 0.55 0.56
Netflix Inc. 0.45 0.45 0.53 0.63 0.68
Walt Disney Co. 0.34 0.35 0.40 0.43 0.35
Debt to Capital (including Operating Lease Liability), Sector
Media & Entertainment 0.34 0.36 0.35 0.36 0.35
Debt to Capital (including Operating Lease Liability), Industry
Communication Services 0.46 0.48 0.47 0.47 0.45

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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 37,924 ÷ 191,092 = 0.20

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Meta Platforms Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Assets

Meta Platforms Inc., debt to assets 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)
Finance lease liabilities, current 90 129 75 54 55
Long-term debt 18,385 9,923
Finance lease liabilities, non-current 600 558 506 469 418
Total debt 19,075 10,610 581 523 473
 
Total assets 229,623 185,727 165,987 159,316 133,376
Solvency Ratio
Debt to assets1 0.08 0.06 0.00 0.00 0.00
Benchmarks
Debt to Assets, Competitors2
Alphabet Inc. 0.04 0.04 0.04 0.05 0.02
Charter Communications Inc. 0.66 0.68 0.64 0.57 0.53
Comcast Corp. 0.37 0.37 0.34 0.38 0.39
Netflix Inc. 0.30 0.30 0.35 0.42 0.43
Walt Disney Co. 0.23 0.24 0.27 0.29 0.24
Debt to Assets, Sector
Media & Entertainment 0.22 0.23 0.23 0.24 0.24
Debt to Assets, Industry
Communication Services 0.29 0.29 0.29 0.29 0.28

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
Debt to assets = Total debt ÷ Total assets
= 19,075 ÷ 229,623 = 0.08

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Meta Platforms Inc. debt to assets ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Debt to Assets (including Operating Lease Liability)

Meta Platforms Inc., debt to assets (including operating lease liability) 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)
Finance lease liabilities, current 90 129 75 54 55
Long-term debt 18,385 9,923
Finance lease liabilities, non-current 600 558 506 469 418
Total debt 19,075 10,610 581 523 473
Operating lease liabilities, current 1,623 1,367 1,127 1,023 800
Operating lease liabilities, non-current 17,226 15,301 12,746 9,631 9,524
Total debt (including operating lease liability) 37,924 27,278 14,454 11,177 10,797
 
Total assets 229,623 185,727 165,987 159,316 133,376
Solvency Ratio
Debt to assets (including operating lease liability)1 0.17 0.15 0.09 0.07 0.08
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Alphabet Inc. 0.07 0.08 0.08 0.09 0.06
Charter Communications Inc. 0.67 0.68 0.65 0.58 0.54
Comcast Corp. 0.39 0.39 0.37 0.40 0.41
Netflix Inc. 0.35 0.35 0.41 0.47 0.48
Walt Disney Co. 0.25 0.26 0.29 0.31 0.24
Debt to Assets (including Operating Lease Liability), Sector
Media & Entertainment 0.26 0.27 0.26 0.27 0.26
Debt to Assets (including Operating Lease Liability), Industry
Communication Services 0.34 0.35 0.35 0.34 0.32

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).

1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 37,924 ÷ 229,623 = 0.17

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Meta Platforms Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 and from 2022 to 2023.

Financial Leverage

Meta Platforms Inc., financial leverage 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)
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
Benchmarks
Financial Leverage, Competitors2
Alphabet Inc. 1.42 1.43 1.43 1.44 1.37
Charter Communications Inc. 13.28 15.85 10.14 6.06 4.71
Comcast Corp. 3.20 3.18 2.87 3.03 3.18
Netflix Inc. 2.37 2.34 2.81 3.55 4.48
Walt Disney Co. 2.07 2.14 2.30 2.41 2.18
Financial Leverage, Sector
Media & Entertainment 2.00 2.05 2.02 2.03 2.04
Financial Leverage, Industry
Communication Services 2.52 2.60 2.55 2.55 2.51

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
Financial leverage = Total assets ÷ Stockholders’ equity
= 229,623 ÷ 153,168 = 1.50

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Meta Platforms Inc. financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Interest Coverage

Meta Platforms Inc., interest coverage 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)
Net income 39,098 23,200 39,370 29,146 18,485
Add: Income tax expense 8,330 5,619 7,914 4,034 6,327
Add: Interest expense 446 176 15 14 20
Earnings before interest and tax (EBIT) 47,874 28,995 47,299 33,194 24,832
Solvency Ratio
Interest coverage1 107.34 164.74 3,153.27 2,371.00 1,241.60
Benchmarks
Interest Coverage, Competitors2
Alphabet Inc. 279.30 200.80 263.24 357.16 397.25
Charter Communications Inc. 2.32 2.64 2.58 2.12 1.64
Comcast Corp. 6.01 3.38 5.46 4.07 4.72
Netflix Inc. 9.87 8.45 8.63 5.17 4.29
Walt Disney Co. 3.42 4.41 2.66 -0.06 12.19
Interest Coverage, Sector
Media & Entertainment 14.50 12.34 16.64 10.19 10.64
Interest Coverage, Industry
Communication Services 8.76 7.40 10.38 5.86 6.92

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
Interest coverage = EBIT ÷ Interest expense
= 47,874 ÷ 446 = 107.34

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Meta Platforms Inc. interest coverage ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Fixed Charge Coverage

Meta Platforms Inc., fixed charge coverage 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)
Net income 39,098 23,200 39,370 29,146 18,485
Add: Income tax expense 8,330 5,619 7,914 4,034 6,327
Add: Interest expense 446 176 15 14 20
Earnings before interest and tax (EBIT) 47,874 28,995 47,299 33,194 24,832
Add: Operating lease cost 2,091 1,857 1,540 1,391 1,139
Earnings before fixed charges and tax 49,965 30,852 48,839 34,585 25,971
 
Interest expense 446 176 15 14 20
Operating lease cost 2,091 1,857 1,540 1,391 1,139
Fixed charges 2,537 2,033 1,555 1,405 1,159
Solvency Ratio
Fixed charge coverage1 19.69 15.18 31.41 24.62 22.41
Benchmarks
Fixed Charge Coverage, Competitors2
Alphabet Inc. 18.67 18.42 25.06 16.92 17.10
Charter Communications Inc. 2.20 2.48 2.42 2.00 1.58
Comcast Corp. 4.87 2.82 4.48 3.47 4.00
Netflix Inc. 5.64 5.00 5.46 3.65 2.92
Walt Disney Co. 2.71 3.25 2.07 0.32 6.94
Fixed Charge Coverage, Sector
Media & Entertainment 8.62 7.40 10.04 6.57 6.90
Fixed Charge Coverage, Industry
Communication Services 5.03 4.08 5.63 3.58 4.30

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 49,965 ÷ 2,537 = 19.69

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Meta Platforms Inc. fixed charge coverage ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.