Meta Platforms Inc. (META)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 229,623,000 | 185,727,000 | 165,987,000 | 159,316,000 | 133,376,000 |
| Operating ROA | 20.36% | 15.58% | 28.17% | 20.51% | 17.98% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $46,751,000K ÷ $229,623,000K
= 20.36%
Operating return on assets (ROA) measures a company's ability to generate earnings from its operational assets. Meta Platforms Inc's operating ROA has demonstrated fluctuating performance over the past five years. In 2023, the operating ROA was 20.36%, indicating that the company generated approximately $0.2036 in operating income for every dollar of assets employed in its operations.
Compared to the previous year, Meta Platforms experienced an improvement in its operating ROA from 15.58% in 2022 to 20.36% in 2023, signifying enhanced efficiency in utilizing its assets to generate operating income.
When examining the trend over the last five years, Meta Platforms experienced a peak operating ROA of 28.17% in 2021, followed by a slight decline to 20.51% in 2020 and a subsequent increase to 17.98% in 2019.
Overall, Meta Platforms Inc's operating ROA has shown some volatility, with fluctuations in performance levels. It is essential for the company to focus on maintaining or improving its operating ROA over time to ensure efficient asset utilization and sustainable profitability.
Peer comparison
Dec 31, 2023