Meta Platforms Inc. (META)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 46,751,000 | 36,766,000 | 28,682,000 | 27,648,000 | 28,945,000 | 35,131,000 | 39,890,000 | 43,899,000 | 46,753,000 | 46,943,000 | 44,560,000 | 38,156,000 | 32,671,000 | 28,754,000 | 27,899,000 | 26,562,000 | 23,986,000 | 22,948,000 | 21,544,000 | 22,781,000 |
| Total assets | US$ in thousands | 229,623,000 | 216,274,000 | 206,688,000 | 184,491,000 | 185,727,000 | 178,894,000 | 169,779,000 | 164,218,000 | 165,987,000 | 169,585,000 | 170,609,000 | 163,523,000 | 159,316,000 | 146,437,000 | 139,691,000 | 138,371,000 | 133,376,000 | 124,418,000 | 117,006,000 | 109,477,000 |
| Operating ROA | 20.36% | 17.00% | 13.88% | 14.99% | 15.58% | 19.64% | 23.50% | 26.73% | 28.17% | 27.68% | 26.12% | 23.33% | 20.51% | 19.64% | 19.97% | 19.20% | 17.98% | 18.44% | 18.41% | 20.81% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $46,751,000K ÷ $229,623,000K
= 20.36%
Operating return on assets (operating ROA) measures the efficiency of Meta Platforms Inc in generating operating profits from its assets. Looking at the trend over the past eight quarters, we observe fluctuations in the operating ROA. In Q4 2023, the operating ROA was 20.36%, showing a slight increase compared to the previous quarter's 17.00%. Despite this increase, the operating ROA remains lower than the levels recorded in Q2 and Q3 2022, where it stood at 23.50% and 26.73% respectively.
The decreasing trend from the second quarter of 2022 onwards suggests that Meta Platforms Inc's ability to generate operating profits from its assets has been somewhat declining. This could indicate inefficiencies in asset utilization or operational challenges impacting profitability. Further analysis of the company's operational performance and asset management strategies would be beneficial to understand the factors driving these fluctuations in operating ROA.
Peer comparison
Dec 31, 2023