Meta Platforms Inc. (META)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 69,380,000 46,751,000 28,944,000 46,753,000 32,671,000
Total assets US$ in thousands 276,054,000 229,623,000 185,727,000 165,987,000 159,316,000
Operating ROA 25.13% 20.36% 15.58% 28.17% 20.51%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $69,380,000K ÷ $276,054,000K
= 25.13%

Meta Platforms Inc.'s operating return on assets (Operating ROA) has shown fluctuations over the period from December 31, 2020, to December 31, 2024.

- The Operating ROA stood at 20.51% as of December 31, 2020, indicating that for every dollar of assets, the company generated a return of 20.51 cents from its operations.

- By December 31, 2021, the Operating ROA increased to 28.17%, demonstrating an improvement in the company's ability to generate operating income relative to its assets.

- However, by December 31, 2022, the Operating ROA decreased to 15.58%, suggesting that the company's operating performance weakened compared to the prior year.

- The Operating ROA bounced back to 20.36% by December 31, 2023, showing a partial recovery in the company's ability to utilize its assets efficiently for generating operating profits.

- As of December 31, 2024, the Operating ROA rose further to 25.13%, indicating a strengthening in the company's operating efficiency and profitability relative to its asset base.

In summary, Meta Platforms Inc.'s Operating ROA experienced fluctuations over the period, reflecting changes in the company's operational efficiency and profitability in utilizing its assets to generate operating returns. It is essential for stakeholders to monitor these trends to assess the company's performance and financial health.