Meta Platforms Inc. (META)
Working capital 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 current assets | US$ in thousands | 85,365,000 | 59,549,000 | 66,666,000 | 75,670,000 | 66,225,000 |
| Total current liabilities | US$ in thousands | 31,960,000 | 27,026,000 | 21,135,000 | 14,981,000 | 15,053,000 |
| Working capital turnover | 2.51 | 3.58 | 2.59 | 1.41 | 1.38 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $134,090,000K ÷ ($85,365,000K – $31,960,000K)
= 2.51
The working capital turnover ratio for Meta Platforms Inc has shown fluctuations over the past five years. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively managing its working capital to support its operations.
In 2023, the working capital turnover ratio decreased to 2.53, compared to the previous year when it was 3.59. This suggests a decrease in efficiency in utilizing working capital to generate sales revenue. However, the ratio is still above 1, indicating that the company is able to generate revenue using its working capital.
In 2022, the ratio was at its highest at 3.59, demonstrating strong efficiency in utilizing working capital to drive sales. The ratio then decreased in 2023 but remained relatively high compared to previous years.
In 2021 and 2020, the working capital turnover ratios were 2.59 and 1.42, respectively, showing fluctuations in efficiency over these years. The ratio improved in 2021 compared to 2020, indicating better utilization of working capital to generate revenue.
In 2019, the working capital turnover ratio was 1.38, indicating that the company was able to generate sales revenue using its working capital.
Overall, the trend in the working capital turnover ratio for Meta Platforms Inc has been fluctuating, but the company has generally maintained a level of efficiency in utilizing its working capital to drive sales revenue. It would be important for the company to continue monitoring and optimizing its working capital management to ensure sustained efficiency in its operations.
Peer comparison
Dec 31, 2023