Meta Platforms Inc. (META)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 25,959,000 | 25,249,000 | 22,649,000 | 16,692,000 | 12,770,000 |
| Inventory | US$ in thousands | — | — | — | — | — |
| Inventory turnover | — | — | — | — | — |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $25,959,000K ÷ $—K
= —
To calculate the inventory turnover for Meta Platforms Inc, we need information on cost of goods sold (COGS) and average inventory for each respective year. Since the data for COGS is not provided, we are unable to directly compute the inventory turnover ratio. However, inventory turnover is a key indicator of how efficiently a company manages its inventory. A higher inventory turnover ratio typically indicates that a company is selling goods quickly and efficiently utilizing its inventory. On the other hand, a lower ratio may suggest overstocking or slower sales.
To provide a detailed analysis, it would be beneficial to calculate the actual inventory turnover ratio for each year using the formula:
\[ \text{Inventory Turnover Ratio} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory}} \]
Without the specific data for COGS, we are unable to evaluate the trend in Meta Platforms Inc's inventory turnover over the years. However, it is crucial for the company to maintain an optimal balance in managing its inventory levels to ensure efficient operations and maximize profitability.
Peer comparison
Dec 31, 2023