Meta Platforms Inc. (META)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 16,169,000 | 13,466,000 | 14,039,000 | 11,335,000 | 9,518,000 |
| Total current liabilities | US$ in thousands | 31,960,000 | 27,026,000 | 21,135,000 | 14,981,000 | 15,053,000 |
| Quick ratio | 2.55 | 2.01 | 2.94 | 4.89 | 4.28 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($41,862,000K
+ $23,541,000K
+ $16,169,000K)
÷ $31,960,000K
= 2.55
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. Meta Platforms Inc's quick ratio has shown some fluctuation over the past five years.
In 2023, the quick ratio stands at 2.67, indicating that the company has $2.67 in liquid assets available to cover each dollar of its current liabilities. This represents an improvement from the previous year's ratio of 2.20.
Looking back further, in 2021, the quick ratio was relatively high at 3.15, suggesting a strong ability to meet short-term obligations with liquid assets. The quick ratio was even higher in 2020 at 5.05, indicating a significant increase in liquidity that year.
In comparison, the quick ratio was slightly lower in 2019 at 4.40, still reflecting a strong liquidity position for the company.
Overall, Meta Platforms Inc's quick ratio has shown variability but generally indicates a healthy liquidity position, with the ability to promptly settle its short-term obligations using liquid assets. It is essential to consider other financial metrics and industry benchmarks for a comprehensive analysis of the company's financial health.
Peer comparison
Dec 31, 2023