Meta Platforms Inc. (META)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 163,811,000 | 134,090,000 | 116,352,000 | 117,774,000 | 85,822,000 |
| Property, plant and equipment | US$ in thousands | 121,346,000 | 96,587,000 | 79,518,000 | 57,809,000 | 45,633,000 |
| Fixed asset turnover | 1.35 | 1.39 | 1.46 | 2.04 | 1.88 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $163,811,000K ÷ $121,346,000K
= 1.35
Meta Platforms Inc.'s fixed asset turnover has shown fluctuations over the past five years. The ratio increased from 1.88 in December 2020 to 2.04 in December 2021, indicating that the company generated more revenue per dollar of fixed assets in 2021. However, in the subsequent years, the fixed asset turnover declined to 1.46 in December 2022, 1.39 in December 2023, and further to 1.35 in December 2024. This decreasing trend suggests that Meta Platforms Inc. has been less efficient in utilizing its fixed assets to generate sales revenue in recent years. Further analysis and investigation into the company's asset management and operational efficiency may be required to address this decline and improve the fixed asset turnover ratio.
Peer comparison
Dec 31, 2024