Meta Platforms Inc. (META)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 43,889,000 | 43,852,000 | 32,045,000 | 32,307,000 | 41,862,000 | 36,890,000 | 28,785,000 | 11,551,000 | 14,681,000 | 14,308,000 | 12,681,000 | 14,886,000 | 16,601,000 | 14,496,000 | 16,186,000 | 19,513,000 | 17,576,000 | 11,617,000 | 21,045,000 | 23,618,000 |
| Short-term investments | US$ in thousands | 35,152,000 | 27,048,000 | 26,035,000 | 25,813,000 | 23,541,000 | 24,233,000 | 24,661,000 | 25,888,000 | 26,082,000 | 54,936,000 | 55,616,000 | 29,004,000 | 31,397,000 | 43,579,000 | 47,894,000 | 44,706,000 | 44,378,000 | 44,003,000 | 37,195,000 | 36,671,000 |
| 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 |
| Cash ratio | 2.35 | 2.13 | 2.15 | 2.07 | 2.05 | 2.00 | 1.79 | 1.48 | 1.51 | 3.05 | 3.07 | 2.08 | 2.27 | 3.26 | 4.31 | 5.05 | 4.14 | 4.66 | 5.15 | 4.00 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($43,889,000K
+ $35,152,000K)
÷ $33,596,000K
= 2.35
The cash ratio of Meta Platforms Inc. measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations without relying on external financing.
From March 31, 2020, to June 30, 2022, Meta Platforms maintained a relatively stable cash ratio between 4.00 and 5.15, indicating a sound liquidity position during this period. However, starting from September 30, 2022, the cash ratio began to decline gradually, reaching its lowest point of 1.48 on March 31, 2023.
This downward trend continued until December 31, 2024, with the cash ratio fluctuating between 1.48 and 2.35. Although the ratio showed some improvement towards the end of the period, remaining above 2.00, it suggests a potential liquidity strain compared to earlier periods.
Overall, the decreasing trend in the cash ratio from the third quarter of 2022 to the end of 2024 may indicate that Meta Platforms Inc. faced challenges in maintaining a high level of cash relative to its short-term obligations during this period. Further analysis of the company's cash management practices and future liquidity position may be warranted to assess its ability to meet upcoming financial commitments.
Peer comparison
Dec 31, 2024