Meta Platforms Inc. (META)
Fixed asset turnover
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 134,089,000 | 126,404,000 | 120,105,000 | 117,039,000 | 116,352,000 | 117,959,000 | 119,255,000 | 119,510,000 | 117,773,000 | 112,186,000 | 104,646,000 | 94,256,000 | 85,823,000 | 78,849,000 | 75,031,000 | 73,231,000 | 70,574,000 | 66,300,000 | 62,379,000 | 58,727,000 |
| Property, plant and equipment | US$ in thousands | 96,587,000 | 91,772,000 | 87,949,000 | 84,156,000 | 79,518,000 | 73,738,000 | 67,588,000 | 61,582,000 | 57,809,000 | 53,726,000 | 50,909,000 | 47,720,000 | 45,633,000 | 42,291,000 | 39,006,000 | 37,127,000 | 35,323,000 | 32,284,000 | 29,999,000 | 27,345,000 |
| Fixed asset turnover | 1.39 | 1.38 | 1.37 | 1.39 | 1.46 | 1.60 | 1.76 | 1.94 | 2.04 | 2.09 | 2.06 | 1.98 | 1.88 | 1.86 | 1.92 | 1.97 | 2.00 | 2.05 | 2.08 | 2.15 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $134,089,000K ÷ $96,587,000K
= 1.39
The fixed asset turnover ratio is a measure of a company's efficiency in generating sales revenue relative to its investment in fixed assets. A higher ratio indicates that the company is using its fixed assets more efficiently to generate revenue.
Analyzing Meta Platforms Inc's fixed asset turnover over the past eight quarters, we observe a declining trend from Q1 2022 to Q3 2023. The ratio decreased from 1.94 in Q1 2022 to 1.38 in Q3 2023. This downward trend suggests that Meta Platforms Inc may be experiencing challenges in efficiently utilizing its fixed assets to generate sales revenue.
It is important to note that while a decreasing fixed asset turnover ratio can indicate potential inefficiencies in asset utilization, a single ratio on its own does not provide a complete picture. It is recommended to further investigate the reasons behind this trend, such as changes in business strategy, capital expenditures, or operational inefficiencies, to gain a deeper understanding of Meta Platforms Inc's financial performance and asset management.
Peer comparison
Dec 31, 2023
See also:
Meta Platforms Inc. Net Fixed Asset Turnover (Quarterly Data)