Stock Analysis on Net

Meta Platforms Inc. (NASDAQ:META)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Meta Platforms Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Turnover Ratios
Receivables turnover 8.40 7.58 7.43 7.36 6.97
Payables turnover 5.55 12.54 9.37 11.41 14.35
Working capital turnover 2.59 1.42 1.38 1.28 0.91
Average No. Days
Average receivable collection period 43 48 49 50 52
Average payables payment period 66 29 39 32 25

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Meta Platforms Inc. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Meta Platforms Inc. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Meta Platforms Inc. working capital turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Meta Platforms Inc. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Meta Platforms Inc. number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Receivables Turnover

Meta Platforms Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Revenue 117,929 85,965 70,697 55,838 40,653
Accounts receivable, net 14,039 11,335 9,518 7,587 5,832
Short-term Activity Ratio
Receivables turnover1 8.40 7.58 7.43 7.36 6.97
Benchmarks
Receivables Turnover, Competitors2
Alphabet Inc. 6.55 5.90 6.39 6.57 6.05
Charter Communications Inc. 20.04 21.85 20.55 25.18 25.43
Comcast Corp. 9.69 9.03 9.65 8.51 9.89
Netflix Inc. 36.92 40.92 44.36 43.55
Walt Disney Co. 5.04 5.15 4.49 6.37 6.39
Receivables Turnover, Sector
Media & Entertainment 7.80 7.37 7.42 7.97 8.01
Receivables Turnover, Industry
Communication Services 8.01 7.47 7.31 7.20 7.91

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Receivables turnover = Revenue ÷ Accounts receivable, net
= 117,929 ÷ 14,039 = 8.40

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Meta Platforms Inc. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Payables Turnover

Meta Platforms Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Cost of revenue 22,649 16,692 12,770 9,355 5,454
Accounts payable 4,083 1,331 1,363 820 380
Short-term Activity Ratio
Payables turnover1 5.55 12.54 9.37 11.41 14.35
Benchmarks
Payables Turnover, Competitors2
Alphabet Inc. 18.38 15.16 12.93 13.60 14.53
Charter Communications Inc. 43.48 39.23 37.18 36.75 35.87
Comcast Corp. 3.09 2.91 3.18 3.50 3.67
Netflix Inc. 20.70 23.28 18.45 17.70 21.30
Walt Disney Co. 2.76 3.33 3.05 5.03 4.67
Payables Turnover, Sector
Media & Entertainment 6.57 6.80 6.15 7.86 7.82
Payables Turnover, Industry
Communication Services 5.11 4.98 4.82 5.26 5.16

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 22,649 ÷ 4,083 = 5.55

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Meta Platforms Inc. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Working Capital Turnover

Meta Platforms Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data (US$ in millions)
Current assets 66,666 75,670 66,225 50,480 48,563
Less: Current liabilities 21,135 14,981 15,053 7,017 3,760
Working capital 45,531 60,689 51,172 43,463 44,803
 
Revenue 117,929 85,965 70,697 55,838 40,653
Short-term Activity Ratio
Working capital turnover1 2.59 1.42 1.38 1.28 0.91
Benchmarks
Working Capital Turnover, Competitors2
Alphabet Inc. 2.08 1.55 1.51 1.35 1.11
Charter Communications Inc.
Comcast Corp.
Netflix Inc. 12.78 4.93 5.31
Walt Disney Co. 26.13 7.58
Working Capital Turnover, Sector
Media & Entertainment 4.05 2.83 3.32 3.09 2.66
Working Capital Turnover, Industry
Communication Services 8.56 4.72 7.01 6.63 5.53

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Working capital turnover = Revenue ÷ Working capital
= 117,929 ÷ 45,531 = 2.59

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Meta Platforms Inc. working capital turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Average Receivable Collection Period

Meta Platforms Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Receivables turnover 8.40 7.58 7.43 7.36 6.97
Short-term Activity Ratio (no. days)
Average receivable collection period1 43 48 49 50 52
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Alphabet Inc. 56 62 57 56 60
Charter Communications Inc. 18 17 18 14 14
Comcast Corp. 38 40 38 43 37
Netflix Inc. 10 9 8 8
Walt Disney Co. 72 71 81 57 57
Average Receivable Collection Period, Sector
Media & Entertainment 47 50 49 46 46
Average Receivable Collection Period, Industry
Communication Services 46 49 50 51 46

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.40 = 43

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Meta Platforms Inc. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021.

Average Payables Payment Period

Meta Platforms Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018 Dec 31, 2017
Selected Financial Data
Payables turnover 5.55 12.54 9.37 11.41 14.35
Short-term Activity Ratio (no. days)
Average payables payment period1 66 29 39 32 25
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Alphabet Inc. 20 24 28 27 25
Charter Communications Inc. 8 9 10 10 10
Comcast Corp. 118 125 115 104 100
Netflix Inc. 18 16 20 21 17
Walt Disney Co. 132 110 120 73 78
Average Payables Payment Period, Sector
Media & Entertainment 56 54 59 46 47
Average Payables Payment Period, Industry
Communication Services 71 73 76 69 71

Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.55 = 66

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Meta Platforms Inc. number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.