Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Meta Platforms Inc., solvency ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The analysis of the financial leverage and various debt ratios over the observed periods reveals distinct trends indicating changes in the company's capital structure and leverage profile.
- Debt to Equity Ratio
- The debt to equity ratio was reported only from December 2022 onward, starting at 0.08 and maintaining a steady level close to this value through mid-2023. Subsequently, it showed a slight increase, peaking at 0.18 by March 2024 before moderating somewhat but remaining elevated relative to earlier values through to March 2025. This indicates a gradual increase in debt relative to shareholders' equity in recent quarters.
- Debt to Equity Ratio (Including Operating Lease Liability)
- This ratio presents a more comprehensive view by including lease liabilities and is available from March 2020. It started around 0.10, showing minor fluctuations but generally trending upward over time. From a level near 0.09 in 2020, it rose significantly after mid-2021, reaching values around 0.27 by late 2024, before slightly declining to 0.27 in early 2025. This upward trend suggests increasing leverage when factoring in operating lease obligations.
- Debt to Capital Ratio
- Reported from December 2022, the debt to capital ratio has shown a gradual increase from approximately 0.07 to peaks around 0.15 in early 2024, thereafter slightly declining but still higher than the initial values. This trend signals an increase in the portion of capital funded through debt.
- Debt to Capital Ratio (Including Operating Lease Liability)
- This ratio follows a similar pattern beginning at 0.09 in early 2020 and moving modestly upward. A notable acceleration is seen after mid-2021, with the ratio climbing from approximately 0.17 up to around 0.23 by late 2024, before marginal decline to 0.21 in early 2025. This highlights increased reliance on liabilities, including leases, within the company's capital structure.
- Debt to Assets Ratio
- Available from December 2022, this ratio moved up from 0.06 to a high near 0.11 in the first quarter of 2024 before easing slightly. The increase reflects a greater proportion of total assets being financed through debt.
- Debt to Assets Ratio (Including Operating Lease Liability)
- Starting at 0.07 in Q1 2020, this ratio rose steadily, with a marked increase in the final quarters observed. From about 0.14 at the start of 2023, it peaking near 0.19 in late 2024 before falling to 0.18 in early 2025. This indicates a rising share of debt plus operating lease liabilities financing the asset base over the period.
- Financial Leverage
- Financial leverage has displayed a general upward trajectory throughout the entire period. Beginning at 1.31 in early 2020, it experienced minor fluctuations before increasing notably from 1.44 in late 2022 to its highest peak of 1.56 by late 2024. Thereafter, it slightly decreased but remained elevated at about 1.51 through early 2025. This suggests that the company has been employing increased use of debt or other liabilities relative to equity to finance its assets over time.
In summary, the data demonstrate a consistent trend towards higher leverage and increased use of debt and lease liabilities over the analyzed quarters. The inclusion of operating lease liabilities in the debt-related ratios accentuates this trend, reflecting a broader consideration of obligations influencing the capital structure. Financial leverage growth corresponds with these observations, indicating a strategic shift towards greater liability financing contributing to the overall capital employed by the company.
Debt Ratios
Debt to Equity
Meta Platforms Inc., debt to equity calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Long-term debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Stockholders’ equity | 185,029) | 182,637) | 164,529) | 156,763) | 149,529) | 153,168) | 142,873) | 134,033) | 124,795) | 125,713) | 124,094) | 125,767) | 123,228) | 124,879) | 133,360) | 138,227) | 133,657) | 128,290) | 117,731) | 110,447) | 105,304) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity1 | 0.16 | 0.16 | 0.18 | 0.12 | 0.12 | 0.12 | 0.13 | 0.14 | 0.08 | 0.08 | 0.08 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 0.03 | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.02 | 0.02 | |||||||
| Comcast Corp. | 1.14 | 1.16 | 1.18 | 1.18 | 1.17 | 1.17 | 1.18 | 1.16 | 1.16 | 1.17 | 1.15 | 1.02 | 1.00 | 0.99 | 1.01 | 1.04 | 1.12 | 1.15 | 1.21 | 1.25 | 1.27 | |||||||
| Netflix Inc. | 0.62 | 0.63 | 0.70 | 0.63 | 0.66 | 0.71 | 0.65 | 0.63 | 0.66 | 0.69 | 0.68 | 0.75 | 0.83 | 0.97 | 1.01 | 1.13 | 1.21 | 1.47 | 1.55 | 1.69 | 1.74 | |||||||
| Take-Two Interactive Software Inc. | 0.61 | 0.54 | 0.36 | 0.37 | 0.34 | 0.34 | 0.32 | 0.35 | 0.34 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Walt Disney Co. | 0.44 | 0.45 | 0.47 | 0.47 | 0.47 | 0.47 | 0.48 | 0.50 | 0.50 | 0.51 | 0.56 | 0.57 | 0.60 | 0.61 | 0.64 | 0.66 | 0.69 | 0.70 | 0.75 | 0.61 | 0.54 | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 28,829 ÷ 185,029 = 0.16
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends across the reported periods.
- Total Debt
- The total debt remained unreported for multiple early quarters but begins to show values starting in late 2022. From that point, it remained stable around 9,922 to 9,925 million US dollars before sharply increasing towards the end of 2023 and continuing to rise steadily, reaching over 28,800 million US dollars by the last reported quarter in 2025. This significant increase in total debt suggests heightened borrowing or liabilities in later periods.
- Stockholders’ Equity
- Stockholders’ equity demonstrated a generally upward trajectory throughout the entire period. Starting from approximately 105,300 million US dollars in early 2020, it showed steady growth with minor fluctuations, peaking around 153,000 million US dollars at the end of 2023. Following this peak, it slightly fluctuates but continues to increase overall, reaching roughly 185,000 million US dollars by early 2025. This pattern signals continued retention of earnings and/or capital injections enhancing the equity base.
- Debt to Equity Ratio
- The debt to equity ratio, reported only in the later periods starting in late 2022, initially stabilizes around 0.08, indicating low leverage. In late 2023, it rises sharply to approximately 0.14 but decreases slightly in subsequent quarters, stabilizing around 0.12. Toward early 2025, it shows an upward trend again, reaching approximately 0.18 before slightly easing to 0.16. This pattern denotes increased leverage corresponding with the rising total debt, though equity growth mitigates some leverage impact.
Overall, the financial data suggest a strategy involving increased borrowing alongside strong equity growth. The rising debt levels contribute to higher financial leverage, although the company's equity base grows sufficiently to maintain a moderate debt to equity ratio. The increase in leverage could signal expansion initiatives or other capital demands requiring closer monitoring in future periods.
Debt to Equity (including Operating Lease Liability)
Meta Platforms Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Long-term debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Operating lease liabilities, current | 1,976) | 1,942) | 2,016) | 1,917) | 1,676) | 1,623) | 1,460) | 1,396) | 1,479) | 1,367) | 1,291) | 1,275) | 1,159) | 1,127) | 1,086) | 1,051) | 1,040) | 1,023) | 975) | 899) | 835) | |||||||
| Operating lease liabilities, non-current | 18,714) | 18,292) | 18,208) | 17,685) | 17,570) | 17,226) | 16,374) | 16,440) | 16,171) | 15,301) | 14,687) | 14,792) | 12,894) | 12,746) | 11,554) | 10,956) | 10,574) | 9,631) | 9,641) | 9,633) | 9,509) | |||||||
| Total debt (including operating lease liability) | 49,519) | 49,060) | 49,047) | 37,991) | 37,633) | 37,234) | 36,217) | 36,218) | 27,575) | 26,591) | 25,900) | 16,067) | 14,053) | 13,873) | 12,640) | 12,007) | 11,614) | 10,654) | 10,616) | 10,532) | 10,344) | |||||||
| Stockholders’ equity | 185,029) | 182,637) | 164,529) | 156,763) | 149,529) | 153,168) | 142,873) | 134,033) | 124,795) | 125,713) | 124,094) | 125,767) | 123,228) | 124,879) | 133,360) | 138,227) | 133,657) | 128,290) | 117,731) | 110,447) | 105,304) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.27 | 0.27 | 0.30 | 0.24 | 0.25 | 0.24 | 0.25 | 0.27 | 0.22 | 0.21 | 0.21 | 0.13 | 0.11 | 0.11 | 0.09 | 0.09 | 0.09 | 0.08 | 0.09 | 0.10 | 0.10 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.07 | 0.08 | |||||||
| Take-Two Interactive Software Inc. | 0.69 | 0.62 | 0.41 | 0.42 | 0.39 | 0.39 | 0.37 | 0.39 | 0.38 | 0.07 | 0.07 | 0.07 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.06 | 0.07 | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 49,519 ÷ 185,029 = 0.27
2 Click competitor name to see calculations.
The financial data reveals a clear upward trend in total debt over the periods analyzed. Starting at approximately $10.3 billion in the first quarter of 2020, total debt remains relatively stable with a gradual increase until the first half of 2022. A marked increase is observed beginning in the third quarter of 2022, with total debt rising sharply from around $16.1 billion to over $49 billion by the first quarter of 2025.
Stockholders’ equity demonstrates a generally positive, albeit more fluctuating, trend compared to total debt. Beginning at roughly $105.3 billion in the first quarter of 2020, equity increases steadily until the end of 2020. It peaks initially in mid-2021 before experiencing a slight decline toward the end of that year. Equity remains relatively stable throughout 2022, showing modest growth again starting in early 2023. By the first quarter of 2025, equity reaches approximately $185 billion, indicating substantial growth but with periods of volatility.
The debt to equity ratio, which measures financial leverage, reflects these changes. Initially stable in a narrow range around 0.08 to 0.11 from 2020 through early 2022, the ratio increases significantly in the second half of 2022, corresponding to the surge in debt relative to equity. It peaks near 0.3 in the latter quarters of the period, suggesting increased leverage. Despite slight fluctuations, the ratio remains elevated relative to earlier years, indicating a shift toward higher leverage over the most recent periods.
- Total Debt
- Exhibits a notable rise, especially from late 2022 onwards, with an almost threefold increase by early 2025.
- Stockholders' Equity
- Displays steady growth with intermittent declines, ending with a significant increase at the close of the period examined.
- Debt to Equity Ratio
- Shows low, stable levels initially; however, it rises markedly in the latter periods, indicating increased reliance on debt financing relative to equity.
Overall, the data suggests an increasing leverage position for the company over the analyzed periods, driven predominantly by accelerated debt accumulation outpacing the growth in equity. This shift warrants attention as it may influence the company’s risk profile and financial flexibility going forward.
Debt to Capital
Meta Platforms Inc., debt to capital calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Long-term debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Stockholders’ equity | 185,029) | 182,637) | 164,529) | 156,763) | 149,529) | 153,168) | 142,873) | 134,033) | 124,795) | 125,713) | 124,094) | 125,767) | 123,228) | 124,879) | 133,360) | 138,227) | 133,657) | 128,290) | 117,731) | 110,447) | 105,304) | |||||||
| Total capital | 213,858) | 211,463) | 193,352) | 175,152) | 167,916) | 171,553) | 161,256) | 152,415) | 134,720) | 135,636) | 134,016) | 125,767) | 123,228) | 124,879) | 133,360) | 138,227) | 133,657) | 128,290) | 117,731) | 110,447) | 105,304) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital1 | 0.13 | 0.14 | 0.15 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.07 | 0.07 | 0.07 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.02 | 0.02 | |||||||
| Comcast Corp. | 0.53 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.51 | 0.50 | 0.50 | 0.50 | 0.51 | 0.53 | 0.53 | 0.55 | 0.56 | 0.56 | |||||||
| Netflix Inc. | 0.38 | 0.39 | 0.41 | 0.39 | 0.40 | 0.41 | 0.39 | 0.39 | 0.40 | 0.41 | 0.40 | 0.43 | 0.45 | 0.49 | 0.50 | 0.53 | 0.55 | 0.60 | 0.61 | 0.63 | 0.64 | |||||||
| Take-Two Interactive Software Inc. | 0.38 | 0.35 | 0.27 | 0.27 | 0.26 | 0.25 | 0.24 | 0.26 | 0.25 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Walt Disney Co. | 0.31 | 0.31 | 0.32 | 0.32 | 0.32 | 0.32 | 0.33 | 0.33 | 0.33 | 0.34 | 0.36 | 0.36 | 0.38 | 0.38 | 0.39 | 0.40 | 0.41 | 0.41 | 0.43 | 0.38 | 0.35 | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 28,829 ÷ 213,858 = 0.13
2 Click competitor name to see calculations.
The financial data reflects a notable evolution in debt levels and capital structure over the periods presented. Starting with total debt, there is an absence of recorded values in the earlier quarters up to the end of 2021. However, beginning from the first quarter of 2022, the total debt values are reported consistently. Initial debt figures in early 2022 are around 9,922 million US dollars and remain stable through the end of 2022.
From the first quarter of 2023 onwards, total debt experiences a marked increase, nearly doubling from approximately 9,925 million US dollars to around 18,389 million US dollars by the end of 2023. This indicates a substantial rise in leverage within one year. The upward trajectory continues into 2024 with debt climbing further to approximately 28,829 million US dollars by the end of the year.
Concurrent with debt trends, total capital exhibits an increasing pattern though with some fluctuations. Starting at 105,304 million US dollars in the first quarter of 2020, capital grew steadily for most of the periods, reaching a peak of around 171,553 million US dollars by mid-2023. Thereafter, some variability is observed with minor decreases and increases, concluding at about 213,858 million US dollars by the end of the first quarter of 2025. The growth in total capital suggests expansion efforts or accumulation of equity and other capital components despite intermittent declines.
The debt to capital ratio corroborates these observations. This ratio is not reported in early periods but begins to be recorded in early 2022, starting at approximately 0.07 (7%). It remains relatively stable around this level through late 2022, implying conservative leverage initially. However, in 2023, this ratio increases to a range of about 0.10 to 0.12, reflecting the rise in debt relative to capital. By 2024, the ratio further escalates to a high of approximately 0.15 (15%), indicating a significant increase in the company’s reliance on debt financing within its capital structure.
Overall, the data illustrates a strategic shift towards greater debt utilization starting from 2022, with debt growing at a faster rate than total capital. Despite the capital base expanding over the period, the proportion of debt to total capital also increases, suggesting a recalibration of financial leverage that could affect risk profiles and financing costs going forward. Continuous monitoring of these trends is advisable to assess implications on the company's financial stability and investment capacity.
- Total Debt Trend
- Absent or unreported before 2022; stable at approximately 9,922 million US dollars early 2022; significant rise to around 18,389 million US dollars by end of 2023; further increase to nearly 28,829 million US dollars by end of 2024.
- Total Capital Trend
- Steady growth from 105,304 million US dollars in early 2020 to peaks above 171,000 million US dollars by mid-2023; some fluctuations thereafter; overall growth to above 213,000 million US dollars through early 2025.
- Debt to Capital Ratio
- Not reported before 2022; initial low values near 7% during 2022; increasing to ranges between 10-12% in 2023; further increase towards 15% by 2024, indicating increased leverage.
Debt to Capital (including Operating Lease Liability)
Meta Platforms Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Long-term debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Operating lease liabilities, current | 1,976) | 1,942) | 2,016) | 1,917) | 1,676) | 1,623) | 1,460) | 1,396) | 1,479) | 1,367) | 1,291) | 1,275) | 1,159) | 1,127) | 1,086) | 1,051) | 1,040) | 1,023) | 975) | 899) | 835) | |||||||
| Operating lease liabilities, non-current | 18,714) | 18,292) | 18,208) | 17,685) | 17,570) | 17,226) | 16,374) | 16,440) | 16,171) | 15,301) | 14,687) | 14,792) | 12,894) | 12,746) | 11,554) | 10,956) | 10,574) | 9,631) | 9,641) | 9,633) | 9,509) | |||||||
| Total debt (including operating lease liability) | 49,519) | 49,060) | 49,047) | 37,991) | 37,633) | 37,234) | 36,217) | 36,218) | 27,575) | 26,591) | 25,900) | 16,067) | 14,053) | 13,873) | 12,640) | 12,007) | 11,614) | 10,654) | 10,616) | 10,532) | 10,344) | |||||||
| Stockholders’ equity | 185,029) | 182,637) | 164,529) | 156,763) | 149,529) | 153,168) | 142,873) | 134,033) | 124,795) | 125,713) | 124,094) | 125,767) | 123,228) | 124,879) | 133,360) | 138,227) | 133,657) | 128,290) | 117,731) | 110,447) | 105,304) | |||||||
| Total capital (including operating lease liability) | 234,548) | 231,697) | 213,576) | 194,754) | 187,162) | 190,402) | 179,090) | 170,251) | 152,370) | 152,304) | 149,994) | 141,834) | 137,281) | 138,752) | 146,000) | 150,234) | 145,271) | 138,944) | 128,347) | 120,979) | 115,648) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.21 | 0.21 | 0.23 | 0.20 | 0.20 | 0.20 | 0.20 | 0.21 | 0.18 | 0.17 | 0.17 | 0.11 | 0.10 | 0.10 | 0.09 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 0.06 | 0.06 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.07 | 0.07 | |||||||
| Take-Two Interactive Software Inc. | 0.41 | 0.38 | 0.29 | 0.29 | 0.28 | 0.28 | 0.27 | 0.28 | 0.28 | 0.06 | 0.06 | 0.06 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.06 | 0.07 | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 49,519 ÷ 234,548 = 0.21
2 Click competitor name to see calculations.
The financial data reveals a progressive increase in total debt over the observed periods, starting from $10,344 million in March 2020 and rising significantly to $49,519 million by March 2025. Notably, the increase becomes steeper after June 2022, indicating a considerable rise in leverage during the latter periods.
Total capital shows a general upward trend as well, beginning at $115,648 million in March 2020 and advancing to $234,548 million by March 2025. This growth is relatively steady, with some fluctuations such as a decrease observed between June 2021 and December 2021. The increase in total capital is consistent but less pronounced compared to the acceleration in total debt towards the end of the period.
The ratio of debt to capital starts low at 0.09 in March 2020, maintaining values between 0.08 and 0.10 in the initial years. However, from June 2022 onwards, the ratio rises sharply, reaching a peak of 0.23 by September 2024 before declining slightly to 0.21 by March 2025. This ratio trend suggests an increasing reliance on debt financing relative to the company's capital base over time, indicating a shift in the company’s capital structure towards higher leverage.
- Total Debt
- Shows steady growth from early 2020 through mid-2022, followed by a rapid increase, almost doubling from $16,067 million in June 2022 to approximately $37,991 million by September 2024 before nearly reaching $49,519 million by March 2025.
- Total Capital
- Generally increases with some fluctuations; it rises from around $115,648 million in early 2020 to over $234,000 million by early 2025, but with occasional decreases, particularly in late 2021 and periods of 2023.
- Debt to Capital Ratio
- Remains relatively low and stable (0.08-0.10) during the initial period, then increases sharply from mid-2022, peaking at 0.23 in late 2024. This signals a rising proportion of debt within the capital structure, implying greater financial leverage.
Overall, the data suggests a strategic shift towards utilizing more debt over time in relation to capital. The increasing debt-to-capital ratio highlights a possible adaptation in financial policy or capital management, which could reflect efforts to leverage growth opportunities, refinance existing liabilities, or manage costs of capital. Careful monitoring of this leverage trend is warranted as it may impact financial risk and flexibility going forward.
Debt to Assets
Meta Platforms Inc., debt to assets calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Long-term debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total assets | 280,213) | 276,054) | 256,408) | 230,238) | 222,844) | 229,623) | 216,274) | 206,688) | 184,491) | 185,727) | 178,894) | 169,779) | 164,218) | 165,987) | 169,585) | 170,609) | 163,523) | 159,316) | 146,437) | 139,691) | 138,371) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets1 | 0.10 | 0.10 | 0.11 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.05 | 0.05 | 0.06 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.01 | 0.02 | |||||||
| Comcast Corp. | 0.37 | 0.37 | 0.38 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.36 | 0.35 | 0.35 | 0.34 | 0.35 | 0.36 | 0.37 | 0.38 | 0.39 | 0.39 | 0.39 | |||||||
| Netflix Inc. | 0.29 | 0.29 | 0.31 | 0.28 | 0.29 | 0.30 | 0.29 | 0.28 | 0.29 | 0.30 | 0.29 | 0.31 | 0.32 | 0.35 | 0.36 | 0.38 | 0.39 | 0.42 | 0.42 | 0.42 | 0.42 | |||||||
| Take-Two Interactive Software Inc. | 0.28 | 0.25 | 0.21 | 0.20 | 0.20 | 0.19 | 0.18 | 0.19 | 0.19 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||
| Walt Disney Co. | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | 0.26 | 0.27 | 0.27 | 0.28 | 0.28 | 0.29 | 0.29 | 0.31 | 0.27 | 0.24 | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 28,829 ÷ 280,213 = 0.10
2 Click competitor name to see calculations.
The financial data reveals several notable trends concerning total debt, total assets, and the debt-to-assets ratio over the observed periods. The analysis reflects changes mainly from the initial quarters of 2020 through the first quarter of 2025.
- Total Debt
- Total debt values are not reported in the earliest periods but appear starting late 2022. Initial reported figures indicate total debt around 9.9 billion USD, remaining relatively stable through late 2022. Beginning in the first quarter of 2023, total debt approximately doubles to around 18.4 billion USD and remains at this elevated level through 2023. From 2024 onwards, there is a further significant increase, reaching approximately 28.8 billion USD by the early quarters of 2025. This stepwise debt growth suggests strategic financing activities or capital structure changes during these intervals.
- Total Assets
- Total assets show a consistent upward trend across the entire period covered. Starting from about 138 billion USD at the end of Q1 2020, there is a general growth trajectory with periodic fluctuations. The asset base increases steadily through 2021 and 2022, reaching beyond 185 billion USD by late 2022. In 2023 and early 2024, a sharper increase is observed, with total assets exceeding 230 billion USD during this timeframe. By the first quarter of 2025, total assets further elevate to approximately 280 billion USD. This overall asset expansion indicates ongoing investments, growth initiatives, or asset revaluation.
- Debt to Assets Ratio
- The debt-to-assets ratio data is available starting late 2022. It initially reflects low leverage levels, ranging from 0.05 to 0.06. A significant upward shift occurs in early 2023 when the ratio rises sharply to around 0.09, maintaining close to 0.08 for the rest of 2023. Entering 2024, the ratio increases further to values around 0.10 to 0.11. Despite the increase, the ratio remains moderate, indicating that debt growth, while pronounced, stays proportional relative to total assets. The rising leverage suggests an adjusting capital structure with increased reliance on debt funding but within a manageable range.
Overall, the company exhibits a clear pattern of asset growth accompanied by a deliberate and staged increase in debt financing. The trends point toward an expansion phase supported by enhanced borrowing, with the leverage ratio increasing but still kept within a controlled band. No indications of excessive risk or financial strain arise based on the available ratio data up to early 2025.
Debt to Assets (including Operating Lease Liability)
Meta Platforms Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Long-term debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt | 28,829) | 28,826) | 28,823) | 18,389) | 18,387) | 18,385) | 18,383) | 18,382) | 9,925) | 9,923) | 9,922) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Operating lease liabilities, current | 1,976) | 1,942) | 2,016) | 1,917) | 1,676) | 1,623) | 1,460) | 1,396) | 1,479) | 1,367) | 1,291) | 1,275) | 1,159) | 1,127) | 1,086) | 1,051) | 1,040) | 1,023) | 975) | 899) | 835) | |||||||
| Operating lease liabilities, non-current | 18,714) | 18,292) | 18,208) | 17,685) | 17,570) | 17,226) | 16,374) | 16,440) | 16,171) | 15,301) | 14,687) | 14,792) | 12,894) | 12,746) | 11,554) | 10,956) | 10,574) | 9,631) | 9,641) | 9,633) | 9,509) | |||||||
| Total debt (including operating lease liability) | 49,519) | 49,060) | 49,047) | 37,991) | 37,633) | 37,234) | 36,217) | 36,218) | 27,575) | 26,591) | 25,900) | 16,067) | 14,053) | 13,873) | 12,640) | 12,007) | 11,614) | 10,654) | 10,616) | 10,532) | 10,344) | |||||||
| Total assets | 280,213) | 276,054) | 256,408) | 230,238) | 222,844) | 229,623) | 216,274) | 206,688) | 184,491) | 185,727) | 178,894) | 169,779) | 164,218) | 165,987) | 169,585) | 170,609) | 163,523) | 159,316) | 146,437) | 139,691) | 138,371) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.18 | 0.18 | 0.19 | 0.17 | 0.17 | 0.16 | 0.17 | 0.18 | 0.15 | 0.14 | 0.14 | 0.09 | 0.09 | 0.08 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.07 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.05 | 0.06 | |||||||
| Take-Two Interactive Software Inc. | 0.32 | 0.29 | 0.24 | 0.23 | 0.22 | 0.22 | 0.21 | 0.21 | 0.21 | 0.04 | 0.04 | 0.04 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.03 | 0.03 | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 49,519 ÷ 280,213 = 0.18
2 Click competitor name to see calculations.
The company’s financial leverage, as measured by the ratio of total debt (including operating lease liabilities) to total assets, exhibits an overall increasing trend over the analyzed periods. The absolute amount of total debt increased significantly from US$10,344 million at the end of the first quarter of 2020 to US$49,519 million by the first quarter of 2025. This substantial rise in debt reflects a notable increase in borrowing and lease obligations over time.
Total assets also showed a steady upward movement, rising from US$138,371 million in the first quarter of 2020 to US$280,213 million by the first quarter of 2025. Although assets have nearly doubled in this span, the pace of debt growth outstripped asset growth, contributing to the rising leverage ratio.
- Debt to Assets Ratio
- This ratio started at a relatively low level of 0.07 in early 2020 and remained fairly stable, fluctuating slightly between 0.07 and 0.08 throughout 2020 and 2021. However, from the first quarter of 2022 onwards, the ratio moved upward more sharply, reaching a peak of 0.19 by the third quarter of 2024. The ratio then slightly declined but remained elevated around 0.18 in the first quarter of 2025. This trend underscores an increasing reliance on debt financing relative to the asset base over the analyzed period.
In summary, the company's financial profile indicates a growing leverage position with substantial increments in total debt compared to total assets. The rising debt-to-assets ratio signals a higher financial risk, which may impact future financial flexibility and cost of capital considerations. Continuous monitoring of the debt levels and their interplay with asset growth is advisable to assess sustainability and risk management.
Financial Leverage
Meta Platforms Inc., financial leverage calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||||||
| Total assets | 280,213) | 276,054) | 256,408) | 230,238) | 222,844) | 229,623) | 216,274) | 206,688) | 184,491) | 185,727) | 178,894) | 169,779) | 164,218) | 165,987) | 169,585) | 170,609) | 163,523) | 159,316) | 146,437) | 139,691) | 138,371) | |||||||
| Stockholders’ equity | 185,029) | 182,637) | 164,529) | 156,763) | 149,529) | 153,168) | 142,873) | 134,033) | 124,795) | 125,713) | 124,094) | 125,767) | 123,228) | 124,879) | 133,360) | 138,227) | 133,657) | 128,290) | 117,731) | 110,447) | 105,304) | |||||||
| Solvency Ratio | ||||||||||||||||||||||||||||
| Financial leverage1 | 1.51 | 1.51 | 1.56 | 1.47 | 1.49 | 1.50 | 1.51 | 1.54 | 1.48 | 1.48 | 1.44 | 1.35 | 1.33 | 1.33 | 1.27 | 1.23 | 1.22 | 1.24 | 1.24 | 1.26 | 1.31 | |||||||
| Benchmarks | ||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||||||
| Alphabet Inc. | 1.38 | 1.39 | 1.37 | 1.38 | 1.39 | 1.42 | 1.45 | 1.43 | 1.42 | 1.43 | 1.41 | 1.39 | 1.41 | 1.43 | 1.42 | 1.41 | 1.42 | 1.44 | 1.41 | 1.34 | 1.34 | |||||||
| Comcast Corp. | 3.09 | 3.11 | 3.15 | 3.15 | 3.19 | 3.20 | 3.16 | 3.12 | 3.15 | 3.18 | 3.17 | 2.92 | 2.89 | 2.87 | 2.89 | 2.92 | 3.01 | 3.03 | 3.12 | 3.18 | 3.22 | |||||||
| Netflix Inc. | 2.17 | 2.17 | 2.30 | 2.22 | 2.29 | 2.37 | 2.24 | 2.23 | 2.27 | 2.34 | 2.32 | 2.43 | 2.58 | 2.81 | 2.79 | 2.96 | 3.11 | 3.55 | 3.74 | 3.98 | 4.17 | |||||||
| Take-Two Interactive Software Inc. | 2.16 | 2.16 | 1.75 | 1.80 | 1.74 | 1.75 | 1.77 | 1.85 | 1.84 | 1.72 | 1.73 | 1.91 | 1.74 | 1.81 | 1.89 | 2.01 | 2.03 | 1.95 | 2.03 | 2.21 | 2.09 | |||||||
| Walt Disney Co. | 1.93 | 1.95 | 1.97 | 1.97 | 1.96 | 2.07 | 2.09 | 2.09 | 2.10 | 2.14 | 2.21 | 2.23 | 2.26 | 2.30 | 2.33 | 2.34 | 2.40 | 2.41 | 2.42 | 2.28 | 2.24 | |||||||
Based on: 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), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
1 Q1 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 280,213 ÷ 185,029 = 1.51
2 Click competitor name to see calculations.
The analysis of the financial data over the observed periods reveals several noteworthy trends in the company’s asset composition, equity base, and financial leverage.
- Total Assets
- Total assets showed a general upward trajectory from March 31, 2020, through to March 31, 2025. Starting at approximately US$138.4 billion, assets increased steadily with some variations, reaching around US$280.2 billion by the end of the period. Notable growth spurts are evident in the intervals ending June 30, 2023, and March 31, 2025, signaling periods of significant asset expansion. Although there were occasional small declines, the overall pattern indicates a robust asset base growth over the five-year horizon.
- Stockholders’ Equity
- The stockholders’ equity also experienced growth but with more fluctuations compared to total assets. Beginning at roughly US$105.3 billion, equity increased to over US$185.0 billion by March 31, 2025. However, there were intermittent declines, particularly between June 30, 2021, and December 31, 2022, where equity values fell or plateaued before resuming an upward trend starting from June 30, 2023. Despite fluctuations, the overall pattern suggests reinforcement in the equity base parallel to asset growth, albeit with some volatility that might imply changes in retained earnings, share buybacks, dividends, or other equity-related factors.
- Financial Leverage
- The financial leverage ratio exhibits a gradual increase in leverage over time. Starting at 1.31 in March 2020, the ratio declined slightly to reach a low of 1.22 by March 2021. Subsequently, the ratio increased steadily, peaking at 1.56 in September 2024 before a mild reduction to 1.51 by March 2025. This increasing leverage trend indicates a greater reliance on debt or other liabilities relative to equity over the periods analyzed. The increase from 1.22 to above 1.5 suggests a strategic shift towards higher capital leverage, which could be linked to financing growth, investment, or other operational needs.
In summary, the company exhibited a consistent expansion of its total asset base and stockholders’ equity over the analyzed timeframe, reflecting growth and capital strengthening efforts. However, the rising financial leverage ratio points to a growing dependence on external financing sources. Monitoring this leverage trend is essential for assessing the balance between risk and growth sustainability, particularly given the fluctuations in equity levels during certain periods.