Meta Platforms Inc. (META)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 108,131,000 | 91,103,000 | 95,125,000 | 69,130,000 | 57,802,000 |
| Revenue | US$ in thousands | 134,090,000 | 116,352,000 | 117,774,000 | 85,822,000 | 70,572,000 |
| Gross profit margin | 80.64% | 78.30% | 80.77% | 80.55% | 81.91% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $108,131,000K ÷ $134,090,000K
= 80.64%
The gross profit margin of Meta Platforms Inc has demonstrated stability and consistency over the past five years, ranging from 78.35% to 81.94%. In 2023, the gross profit margin stood at 80.76%, indicating that the company retains approximately 80.76% of its revenue after accounting for the cost of goods sold. This suggests strong pricing power and efficient cost management within the company's operations. The marginal decrease from the previous year is relatively minor and does not raise significant concerns about the company's profitability. Overall, Meta Platforms Inc has maintained a healthy gross profit margin, which is a positive indicator of its ability to generate profits from its core business activities.
Peer comparison
Dec 31, 2023