Meta Platforms Inc. (META)
Receivables 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 |
| Receivables | US$ in thousands | 16,994,000 | 16,169,000 | 13,466,000 | 14,039,000 | 11,335,000 |
| Receivables turnover | 9.64 | 8.29 | 8.64 | 8.39 | 7.57 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $163,811,000K ÷ $16,994,000K
= 9.64
The receivables turnover ratio for Meta Platforms Inc. has exhibited a general increasing trend over the years, indicating an improvement in the company's ability to efficiently collect outstanding receivables.
Starting at 7.57 in December 2020, the ratio rose to 8.39 by December 2021, showing a positive trend in managing receivables. This upward trajectory continued in the following years, reaching 8.64 by December 2022 and peaking at 9.64 by December 2024.
The consistent increase in receivables turnover suggests that Meta Platforms Inc. has been successful in converting its accounts receivable into cash more frequently over the years. This could be attributed to the company's effective credit policies, prompt invoicing procedures, and diligent collection efforts, leading to enhanced liquidity and financial performance.
Overall, the rising trend in the receivables turnover ratio reflects positively on Meta Platforms Inc.'s management of its accounts receivable and indicates an efficient utilization of resources in the collection process.
Peer comparison
Dec 31, 2024