Meta Platforms Inc. (META)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 47,427,000 | 36,769,000 | 28,325,000 | 27,218,000 | 28,819,000 | 35,373,000 | 40,362,000 | 44,689,000 | 47,284,000 | 47,636,000 | 45,204,000 | 38,822,000 | 33,180,000 | 29,294,000 | 28,490,000 | 27,191,000 | 24,812,000 | 23,614,000 | 22,197,000 | 23,233,000 |
| Revenue (ttm) | US$ in thousands | 134,089,000 | 126,404,000 | 120,105,000 | 117,039,000 | 116,352,000 | 117,959,000 | 119,255,000 | 119,510,000 | 117,773,000 | 112,186,000 | 104,646,000 | 94,256,000 | 85,823,000 | 78,849,000 | 75,031,000 | 73,231,000 | 70,574,000 | 66,300,000 | 62,379,000 | 58,727,000 |
| Pretax margin | 35.37% | 29.09% | 23.58% | 23.26% | 24.77% | 29.99% | 33.85% | 37.39% | 40.15% | 42.46% | 43.20% | 41.19% | 38.66% | 37.15% | 37.97% | 37.13% | 35.16% | 35.62% | 35.58% | 39.56% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $47,427,000K ÷ $134,089,000K
= 35.37%
Meta Platforms Inc's pretax margin has fluctuated over the past eight quarters, ranging from a low of 23.19% in Q1 2023 to a high of 37.34% in Q1 2022. The pretax margin indicates the company's efficiency in generating profits before paying taxes, with higher percentages reflecting better profitability relative to total revenue.
It is notable that Q4 2023 saw a significant increase in pretax margin to 35.16% compared to the previous quarter at 28.96%. This improvement could be attributed to various factors such as cost-cutting measures, revenue growth, or improved operational efficiency.
Overall, Meta Platforms Inc's pretax margin has shown some volatility, but maintaining a healthy pretax margin is crucial for the company's financial stability and sustainable growth in the long term. Tracking and analyzing this metric can provide insights into the company's financial performance and management's ability to effectively control costs and optimize revenue.
Peer comparison
Dec 31, 2023