Meta Platforms Inc. (META)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 47,428,000 | 28,819,000 | 47,284,000 | 33,180,000 | 24,812,000 |
| Revenue | US$ in thousands | 134,090,000 | 116,352,000 | 117,774,000 | 85,822,000 | 70,572,000 |
| Pretax margin | 35.37% | 24.77% | 40.15% | 38.66% | 35.16% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $47,428,000K ÷ $134,090,000K
= 35.37%
The pretax margin of Meta Platforms Inc has displayed fluctuations over the past five years. In 2023, the pretax margin increased to 35.16% from 24.71% in 2022, showcasing a significant improvement in profitability. This rise indicates that the company was able to control its expenses relative to its revenue before accounting for taxes in 2023.
Comparing the pretax margins from 2023 to earlier years, we see that it was lower than the 40.10% recorded in 2021 and the 38.60% in 2020. However, it was higher than the 35.10% in 2019. This signifies some variability in the company's ability to generate profits before taxes when compared to previous years.
Overall, the trend in pretax margin for Meta Platforms Inc demonstrates fluctuations, with the most recent year showing an improvement compared to the preceding year but slightly lower than two years earlier.
Peer comparison
Dec 31, 2023