Meta Platforms Inc. (META)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 134,090,000 | 116,352,000 | 117,774,000 | 85,822,000 | 70,572,000 |
| Receivables | US$ in thousands | 16,169,000 | 13,466,000 | 14,039,000 | 11,335,000 | 9,518,000 |
| Receivables turnover | 8.29 | 8.64 | 8.39 | 7.57 | 7.41 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $134,090,000K ÷ $16,169,000K
= 8.29
Meta Platforms Inc's receivables turnover ratio has been relatively stable over the past five years, ranging from 7.43 to 8.66. The ratio measures how efficiently the company is able to collect its outstanding receivables during a given period.
With a higher ratio indicating a shorter time period to collect receivables, Meta Platforms Inc's consistent range of 7.43 to 8.66 suggests that the company has been effective in managing its accounts receivable turnover. This indicates that the company has been able to efficiently convert its credit sales into cash, which is a positive sign of liquidity and efficient working capital management.
Overall, the stable and relatively high receivables turnover ratio for Meta Platforms Inc over the past five years reflects a positive trend in managing its receivables efficiently.
Peer comparison
Dec 31, 2023