Meta Platforms Inc. (META)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 163,810,000 | 155,720,000 | 149,140,000 | 141,953,000 | 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 |
| Total current assets | US$ in thousands | 100,045,000 | 91,067,000 | 76,431,000 | 75,330,000 | 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 |
| Total current liabilities | US$ in thousands | 33,596,000 | 33,330,000 | 27,004,000 | 28,101,000 | 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 |
| Working capital turnover | 2.47 | 2.70 | 3.02 | 3.01 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $163,810,000K ÷ ($100,045,000K – $33,596,000K)
= 2.47
Working capital turnover is a financial ratio that measures a company's efficiency in managing its working capital to generate sales. A higher working capital turnover ratio indicates better utilization of working capital.
Analyzing Meta Platforms Inc.'s working capital turnover over the reported periods, we observe a fluctuating trend. The ratio gradually increased from 1.35 on March 31, 2020, to peak at 4.32 on March 31, 2023, signaling improved efficiency in utilizing working capital to generate revenue.
However, in the subsequent quarters, the working capital turnover ratio experienced a decline, dropping to 2.47 on December 31, 2024. This decrease suggests a potential inefficiency in managing working capital relative to sales during that period.
It is essential for Meta Platforms Inc. to closely monitor and manage its working capital turnover ratio to ensure optimal utilization of resources in supporting its operational activities and driving revenue generation. Further analysis of the underlying factors influencing this ratio could provide insights into the company's liquidity management and overall financial performance.
Peer comparison
Dec 31, 2024
See also:
Meta Platforms Inc. Working Capital Turnover (Quarterly Data)