Meta Platforms Inc. (META)
Working capital 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 |
| Total current assets | US$ in thousands | 100,045,000 | 85,365,000 | 59,549,000 | 66,666,000 | 75,670,000 |
| Total current liabilities | US$ in thousands | 33,596,000 | 31,960,000 | 27,026,000 | 21,135,000 | 14,981,000 |
| Working capital turnover | 2.47 | 2.51 | 3.58 | 2.59 | 1.41 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $163,811,000K ÷ ($100,045,000K – $33,596,000K)
= 2.47
The working capital turnover ratio for Meta Platforms Inc. has been showing an upward trend over the five-year period from December 31, 2020, to December 31, 2024. The ratio was 1.41 in 2020 and increased steadily to 2.59 in 2021, further improving to 3.58 in 2022, signaling a more efficient utilization of working capital during these years. However, there was a slight decline in 2023 to 2.51 and remained relatively stable at 2.47 in 2024.
The increasing trend in the working capital turnover ratio indicates that Meta Platforms Inc. has been able to generate more revenue from its working capital investments, highlighting an improvement in the company's operational efficiency and liquidity management. Despite the slight dip in 2023, the overall trend suggests that Meta Platforms Inc. has been effectively managing its working capital to drive sales and operations during the period under review.
Peer comparison
Dec 31, 2024