Meta Platforms Inc. (META)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.64% | 78.30% | 80.77% | 80.55% | 81.91% |
| Operating profit margin | 34.87% | 24.88% | 39.70% | 38.07% | 33.99% |
| Pretax margin | 35.37% | 24.77% | 40.15% | 38.66% | 35.16% |
| Net profit margin | 29.16% | 19.94% | 33.43% | 33.96% | 26.19% |
The profitability ratios of Meta Platforms Inc have shown fluctuations over the past five years.
1. Gross Profit Margin: Meta Platforms Inc has maintained a consistently high gross profit margin, ranging from 78.35% to 81.94% over the period. This indicates that the company is effectively managing its production costs and pricing strategies to generate a healthy level of gross profit.
2. Operating Profit Margin: There has been significant variability in the operating profit margin of Meta Platforms Inc, ranging from 24.82% to 39.65% over the period. The company's operating efficiency and cost management strategies seem to have experienced fluctuations, impacting its ability to convert revenues into operating profits.
3. Pretax Margin: Meta Platforms Inc's pretax margin has also shown fluctuations, with a range of 24.71% to 40.10% over the period. This ratio reflects the company's ability to control operating expenses and interest costs relative to its total revenue before taxes.
4. Net Profit Margin: The net profit margin of Meta Platforms Inc has varied from 19.90% to 33.90% over the period. This ratio indicates the company's overall profitability after accounting for all expenses, including taxes.
Overall, Meta Platforms Inc has demonstrated strong profitability, with high gross profit margins and generally healthy operating, pretax, and net profit margins. However, the fluctuations in these ratios over the years suggest that the company may face challenges in maintaining consistent profitability, potentially due to changes in costs, competition, or strategic decisions.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.36% | 15.58% | 28.17% | 20.51% | 17.98% |
| Return on assets (ROA) | 17.03% | 12.49% | 23.72% | 18.29% | 13.86% |
| Return on total capital | 27.91% | 21.34% | 37.44% | 25.47% | 24.57% |
| Return on equity (ROE) | 25.53% | 18.45% | 31.53% | 22.72% | 18.29% |
Meta Platforms Inc has shown consistent profitability over the years, as indicated by the upward trend in its profitability ratios. The operating return on assets (Operating ROA) has improved steadily, from 15.58% in 2022 to 20.36% in 2023, reflecting the company's efficiency in generating profits from its assets through operations.
The return on assets (ROA) also demonstrates positive performance, increasing from 12.49% in 2022 to 17.03% in 2023, indicating that Meta Platforms has been effective in utilizing its assets to generate earnings for its shareholders.
Furthermore, the return on total capital has shown a similar trend, increasing from 21.34% in 2022 to 27.25% in 2023. This ratio measures the efficiency of the company in generating returns from both equity and debt capital invested in the business.
Lastly, the return on equity (ROE) has also witnessed steady growth, reaching 25.53% in 2023 from 18.45% in 2022. This ratio indicates the company's ability to generate profits from the shareholders' equity invested in the business.
Overall, Meta Platforms Inc's profitability ratios suggest that the company has been effectively managing its resources and generating returns for its investors across the years.