Meta Platforms Inc. (META)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 43,889,000 | 41,862,000 | 14,681,000 | 16,601,000 | 17,576,000 |
| Short-term investments | US$ in thousands | 35,152,000 | 23,541,000 | 26,082,000 | 31,397,000 | 44,378,000 |
| Receivables | US$ in thousands | 16,994,000 | 16,169,000 | 13,466,000 | 14,039,000 | 11,335,000 |
| Total current liabilities | US$ in thousands | 33,596,000 | 31,960,000 | 27,026,000 | 21,135,000 | 14,981,000 |
| Quick ratio | 2.86 | 2.55 | 2.01 | 2.94 | 4.89 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($43,889,000K
+ $35,152,000K
+ $16,994,000K)
÷ $33,596,000K
= 2.86
The quick ratio of Meta Platforms Inc. has exhibited a declining trend over the years, indicating a reduction in its short-term liquidity position. As of December 31, 2020, the quick ratio was 4.89, signifying a high level of ability to meet its short-term obligations with its most liquid assets. However, by December 31, 2024, the quick ratio had decreased to 2.86, suggesting a weakening ability to cover immediate liabilities with liquid assets. Despite the decline, the quick ratio has remained above the ideal benchmark of 1, indicating that Meta Platforms Inc. still possesses an adequate level of liquidity to meet its short-term financial obligations in the foreseeable future.
Peer comparison
Dec 31, 2024