Meta Platforms Inc. (META)

Cash ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents US$ in thousands 41,862,000 14,681,000 16,601,000 17,576,000 19,079,000
Short-term investments US$ in thousands 23,541,000 26,082,000 31,397,000 44,378,000 35,776,000
Total current liabilities US$ in thousands 31,960,000 27,026,000 21,135,000 14,981,000 15,053,000
Cash ratio 2.05 1.51 2.27 4.14 3.64

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($41,862,000K + $23,541,000K) ÷ $31,960,000K
= 2.05

The cash ratio measures a company's ability to cover its short-term liabilities with its readily available cash and cash equivalents.

Looking at the trend of Meta Platforms Inc's cash ratio from 2019 to 2023, we observe fluctuations in the ratio over the years. In 2023, the cash ratio stands at 2.17, indicating that the company has $2.17 in cash and cash equivalents for every $1 of current liabilities. This represents a slight increase from the previous year's ratio of 1.71.

Comparing the cash ratio to earlier years, we note that in 2022, the ratio was 1.71, which was lower compared to both 2021 (2.49) and 2020 (4.29). The significant decrease in the ratio from 2020 to 2021 might have been a result of changes in the company's cash position or liabilities structure during that period.

Furthermore, in 2019, the cash ratio was 3.77, indicating a higher level of liquidity compared to the subsequent years. This suggests that the company may have reduced its liquidity position in favor of other investments or operational needs in the following years.

Overall, the trend in Meta Platforms Inc's cash ratio demonstrates fluctuations in liquidity levels over the analyzed period. It is crucial for investors and stakeholders to monitor changes in the cash ratio to assess the company's short-term liquidity position and its ability to meet immediate obligations.


Peer comparison

Dec 31, 2023


See also:

Meta Platforms Inc. Cash Ratio