Meta Platforms Inc. (META)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 46,751,000 | 28,944,000 | 46,753,000 | 32,671,000 | 23,986,000 |
| Revenue | US$ in thousands | 134,090,000 | 116,352,000 | 117,774,000 | 85,822,000 | 70,572,000 |
| Operating profit margin | 34.87% | 24.88% | 39.70% | 38.07% | 33.99% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $46,751,000K ÷ $134,090,000K
= 34.87%
Meta Platforms Inc's operating profit margin has fluctuated over the past five years. The company's operating profit margin was highest in 2021 at 39.65%, indicating that for every dollar of revenue generated, the company retained approximately 39.65 cents as operating profit. However, there was a notable decrease in the operating profit margin in 2022 to 24.82%, suggesting a decrease in profitability.
In 2023, Meta Platforms Inc was able to improve its operating profit margin to 34.66%, indicating a recovery compared to the previous year. This improvement signals that the company was able to better control its operating costs relative to its revenue in 2023. Despite the fluctuations, the company has generally maintained a relatively healthy operating profit margin above 30% in recent years, showcasing its ability to generate profits from its core operations.
Peer comparison
Dec 31, 2023