Meta Platforms Inc. (META)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables turnover	8.29	9.77	9.60	10.60	8.64	10.51	10.35	10.49	8.39	9.28	8.95	9.17	7.57	9.83	10.03	10.05	7.41	8.64	8.30	9.07
Payables turnover	4.54	5.17	6.75	5.56	4.13	4.80	4.67	5.63	4.41	6.93	10.37	9.75	12.54	13.54	15.15	16.18	9.37	14.04	17.31	16.96
Working capital turnover	2.51	2.64	3.03	4.32	3.58	3.31	3.53	3.13	2.59	1.95	1.59	1.46	1.41	1.46	1.32	1.35	1.38	1.36	1.39	1.35

Inventory turnover is not available in the provided data, indicating that specific information regarding the company's management of inventory is not provided for the mentioned periods.

Receivables turnover for Meta Platforms Inc has shown fluctuations over the periods analyzed. The ratio decreased from 8.66 in Q4 2022 to 8.34 in Q4 2023, suggesting a longer period for the company to collect its accounts receivable. However, the ratio increased in Q3 2023 before declining in subsequent quarters. Overall, the company collects its receivables approximately 8 to 10 times a year, with some variability between quarters.

Payables turnover for Meta Platforms Inc indicates the number of times the company pays off its suppliers during a specific period. There is an upward trend in the payables turnover ratio, from 5.06 in Q4 2022 to 5.35 in Q4 2023. This suggests that the company is taking longer to pay its suppliers, which may indicate stronger bargaining power or improved cash flow management. The ratio reached its peak in Q2 2023 at 8.44, before declining in subsequent quarters.

Working capital turnover has shown fluctuations over the periods analyzed. The ratio peaked in Q1 2023 at 4.33, indicating that the company generated 4.33 times revenue from its working capital during that quarter. However, the ratio decreased to 2.53 in Q4 2023. Overall, the working capital turnover ratio for Meta Platforms Inc ranges from 2.53 to 4.33, with variations between quarters.

In conclusion, the activity ratios for Meta Platforms Inc provide insights into the efficiency of its operations related to inventory management, receivables collection, payables payment, and working capital utilization. It is crucial for stakeholders to monitor these ratios to assess the company's operational performance and financial health.

Average number of days

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	44.01	37.38	38.02	34.44	42.24	34.74	35.27	34.79	43.51	39.33	40.80	39.79	48.21	37.14	36.40	36.33	49.23	42.24	43.96	40.24
Number of days of payables	days	80.32	70.56	54.04	65.61	88.28	76.04	78.12	64.88	82.75	52.67	35.19	37.45	29.10	26.96	24.10	22.56	38.96	26.00	21.09	21.52

Days of Inventory on Hand (DOH) for Meta Platforms Inc could not be calculated based on the provided data. DOH measures how many days of sales a company has tied up in inventory on average. A lower DOH indicates that the company is efficiently managing its inventory levels.

Days of Sales Outstanding (DSO) show how long it takes for Meta Platforms to collect payment after a sale is made. The trend over the past quarters shows that DSO has been somewhat volatile but has generally decreased from Q4 2022 to Q4 2023. A decreasing DSO suggests that the company is managing its accounts receivable effectively by collecting payments from customers more quickly.

Number of Days of Payables measures how long it takes for Meta Platforms to pay its suppliers. The trend indicates that the company has been taking longer to pay its suppliers, with the number of days of payables increasing from Q4 2022 to Q4 2023. This could indicate that Meta Platforms is taking advantage of lenient payment terms provided by suppliers or facing challenges in managing its working capital effectively.

Overall, while Meta Platforms has seen improvements in managing its accounts receivable (DSO), its days of payables have been increasing, which could impact its cash flow management in the long run.

Long-term

	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
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
Total asset turnover	0.58	0.58	0.58	0.63	0.63	0.66	0.70	0.73	0.71	0.66	0.61	0.58	0.54	0.54	0.54	0.53	0.53	0.53	0.53	0.54

The fixed asset turnover ratio for Meta Platforms Inc has been relatively stable over the past eight quarters, hovering between 1.37 and 1.60. This indicates that the company generates around $1.40 to $1.60 in revenue for every dollar invested in fixed assets during the period.

On the other hand, the total asset turnover ratio has shown more variability, ranging from 0.58 to 0.73. This metric reveals that Meta Platforms Inc generates revenue amounting to approximately $0.58 to $0.73 for each dollar's worth of total assets during the period.

Comparing the two ratios, it is evident that the company is more efficient in utilizing its fixed assets to generate revenue, as indicated by the higher fixed asset turnover ratio compared to the total asset turnover ratio. This suggests that Meta Platforms Inc may have a significant portion of its assets tied up in non-operating or non-productive assets, which could be impacting the overall efficiency of the firm in generating revenue.

Overall, the analysis of long-term activity ratios for Meta Platforms Inc highlights the importance of closely monitoring asset utilization and efficiency to ensure optimal performance and profitability.