Meta Platforms Inc. (META)
Total asset 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 |
| Total assets | US$ in thousands | 229,623,000 | 185,727,000 | 165,987,000 | 159,316,000 | 133,376,000 |
| Total asset turnover | 0.58 | 0.63 | 0.71 | 0.54 | 0.53 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $134,090,000K ÷ $229,623,000K
= 0.58
The total asset turnover ratio for Meta Platforms Inc has shown a downward trend over the past five years, decreasing from 0.53 in 2019 to 0.59 in 2023. This indicates that the company's ability to generate sales from its total assets has weakened over time. A lower total asset turnover ratio suggests that the company is less efficient in utilizing its assets to generate revenue. Management may need to review and potentially optimize its asset utilization strategies to improve this ratio and enhance overall operational efficiency.
Peer comparison
Dec 31, 2023
Company name
Symbol
Total asset turnover
Meta Platforms Inc.
META
0.58
Alphabet Inc Class A
GOOGL
0.76
Alphabet Inc Class C
GOOG
0.76
DigitalOcean Holdings Inc
DOCN
0.47
DoubleVerify Holdings Inc
DV
0.46
HealthStream Inc
HSTM
0.56
Sabre Corpo
SABR
0.50
TripAdvisor Inc
TRIP
0.69