Meta Platforms Inc. (META)
Working capital turnover
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 134,089,000 | 126,404,000 | 120,105,000 | 117,039,000 | 116,352,000 | 117,959,000 | 119,255,000 | 119,510,000 | 117,773,000 | 112,186,000 | 104,646,000 | 94,256,000 | 85,823,000 | 78,849,000 | 75,031,000 | 73,231,000 | 70,574,000 | 66,300,000 | 62,379,000 | 58,727,000 |
| Total current assets | US$ in thousands | 85,365,000 | 78,378,000 | 69,560,000 | 52,483,000 | 59,549,000 | 58,315,000 | 55,987,000 | 59,265,000 | 66,666,000 | 75,421,000 | 80,697,000 | 77,322,000 | 75,670,000 | 65,799,000 | 68,130,000 | 69,349,000 | 66,225,000 | 62,079,000 | 57,961,000 | 53,300,000 |
| Total current liabilities | US$ in thousands | 31,960,000 | 30,531,000 | 29,921,000 | 25,381,000 | 27,026,000 | 22,687,000 | 22,217,000 | 21,086,000 | 21,135,000 | 17,812,000 | 14,874,000 | 12,717,000 | 14,981,000 | 11,944,000 | 11,308,000 | 15,069,000 | 15,053,000 | 13,328,000 | 12,979,000 | 9,908,000 |
| Working capital turnover | 2.51 | 2.64 | 3.03 | 4.32 | 3.58 | 3.31 | 3.53 | 3.13 | 2.59 | 1.95 | 1.59 | 1.46 | 1.41 | 1.46 | 1.32 | 1.35 | 1.38 | 1.36 | 1.39 | 1.35 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $134,089,000K ÷ ($85,365,000K – $31,960,000K)
= 2.51
Working capital turnover is a financial ratio that measures how efficiently a company is using its working capital to generate sales revenue. A higher working capital turnover indicates that the company is able to efficiently convert its working capital into sales.
Based on the data provided for Meta Platforms Inc, we observe fluctuations in the working capital turnover ratio over the past eight quarters. In Q1 2023, the working capital turnover ratio was 4.33, which was the highest among the quarters presented. This suggests that Meta Platforms was able to generate $4.33 in revenue for every dollar of working capital invested during that quarter, indicating high efficiency in its working capital management.
In contrast, Q4 2023 saw a decrease in the working capital turnover ratio to 2.53, which was the lowest in the period shown. This drop may indicate a potential decrease in the company's ability to efficiently utilize its working capital to generate revenue during the quarter.
Overall, despite fluctuations in the working capital turnover ratio over the quarters, Meta Platforms generally maintained a relatively good level of efficiency in converting its working capital into sales revenue. It is important for the company to monitor and manage its working capital effectively to sustain its operational efficiency and financial performance in the future.
Peer comparison
Dec 31, 2023
See also:
Meta Platforms Inc. Working Capital Turnover (Quarterly Data)