Meta Platforms Inc. (META)
Quick 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 | 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 |
| Receivables | US$ in thousands | 16,994,000 | 14,700,000 | 14,505,000 | 13,430,000 | 16,169,000 | 12,944,000 | 12,511,000 | 11,044,000 | 13,466,000 | 11,227,000 | 11,525,000 | 11,390,000 | 14,039,000 | 12,088,000 | 11,698,000 | 10,276,000 | 11,335,000 | 8,024,000 | 7,483,000 | 7,289,000 |
| 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 |
| Quick ratio | 2.86 | 2.57 | 2.69 | 2.55 | 2.55 | 2.43 | 2.20 | 1.91 | 2.01 | 3.55 | 3.59 | 2.62 | 2.94 | 3.94 | 5.09 | 5.86 | 4.89 | 5.33 | 5.81 | 4.48 |
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, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. A quick ratio greater than 1 indicates that a company can cover its current liabilities without relying on the sale of inventory.
Analyzing the quick ratio of Meta Platforms Inc. from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio. The quick ratio started at a high of 4.48 on March 31, 2020, indicating strong liquidity. Over the subsequent quarters, the quick ratio continued to rise until it reached a peak of 5.86 on March 31, 2021, reflecting the company's robust ability to cover its short-term obligations with liquid assets.
However, from September 30, 2021, to December 31, 2024, the quick ratio showed a declining trend, dropping to 2.86 by December 31, 2024. This could imply that the company's liquidity position weakened during this period, potentially signaling challenges in meeting short-term obligations without relying on selling inventory.
Overall, while Meta Platforms Inc. maintained a quick ratio above 1 throughout the analyzed period, indicating liquidity, the downward trend in the ratio in the later quarters raises concerns about the company's ability to cover its short-term liabilities with its liquid assets. Further analysis of the company's financial statements and cash flow position may provide insights into the factors driving these fluctuations in the quick ratio.
Peer comparison
Dec 31, 2024