Meta Platforms Inc. (META)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 80.64% | 78.96% | 78.26% | 78.34% | 78.30% | 80.28% | 80.45% | 80.32% | 80.77% | 80.83% | 80.95% | 80.52% | 80.55% | 81.01% | 81.43% | 81.69% | 81.91% | 81.79% | 81.83% | 82.56% |
| Operating profit margin | 34.87% | 29.09% | 23.88% | 23.62% | 24.88% | 29.78% | 33.45% | 36.73% | 39.70% | 41.84% | 42.58% | 40.48% | 38.07% | 36.47% | 37.18% | 36.27% | 33.99% | 34.61% | 34.54% | 38.79% |
| 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% |
| Net profit margin | 29.16% | 23.52% | 18.77% | 18.32% | 19.94% | 24.44% | 28.20% | 31.24% | 33.43% | 35.93% | 37.23% | 35.80% | 33.96% | 32.05% | 31.35% | 28.62% | 26.19% | 27.18% | 27.36% | 33.30% |
Meta Platforms Inc has generally maintained strong profitability ratios over the past eight quarters. The company's gross profit margin has remained consistently high, ranging from 78.34% to 80.76%. This indicates efficient cost management in the production of goods and services.
In terms of operating profit margin, Meta Platforms Inc has shown some fluctuations, with a range of 23.56% to 34.66%. The company's ability to control operating expenses and generate profits from its core business activities has varied over the quarters.
The pretax margin has also fluctuated, with a range of 23.19% to 35.16%. This metric reflects Meta Platforms Inc's ability to generate profits before accounting for taxes, with Q4 2023 exhibiting the highest pretax margin at 35.16%.
Looking at net profit margin, the company has maintained solid profitability, with a range of 18.27% to 28.98%. This metric represents Meta Platforms Inc's efficiency in generating profits after all expenses, including taxes, have been taken into account.
Overall, Meta Platforms Inc's profitability ratios demonstrate a consistent focus on managing costs and generating profits across its business operations, with some fluctuations observed in operating and pretax margins. The company's ability to sustain strong gross and net profit margins indicates operational efficiency and effective financial management.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 17.03% | 13.75% | 10.91% | 11.62% | 12.49% | 16.12% | 19.81% | 22.74% | 23.72% | 23.77% | 22.83% | 20.63% | 18.29% | 17.26% | 16.84% | 15.15% | 13.86% | 14.48% | 14.58% | 17.86% |
| Return on total capital | 27.25% | 22.80% | 18.82% | 20.52% | 21.34% | 26.21% | 31.72% | 35.62% | 37.44% | 35.20% | 32.24% | 28.55% | 25.47% | 24.42% | 25.26% | 25.22% | 23.74% | 24.41% | 24.27% | 26.33% |
| Return on equity (ROE) | 25.53% | 20.81% | 16.82% | 17.18% | 18.45% | 23.23% | 26.74% | 30.30% | 31.53% | 30.22% | 28.18% | 25.24% | 22.72% | 21.47% | 21.30% | 19.90% | 18.29% | 19.17% | 19.22% | 22.60% |
Meta Platforms Inc has shown a consistent trend of profitability ratios over the past eight quarters. The Operating return on assets (Operating ROA) has been gradually increasing from 15.58% in Q4 2022 to 20.36% in Q4 2023, indicating that the company has been able to generate more operating income for each dollar of assets employed.
Similarly, the Return on assets (ROA) has also shown an increasing trend from 12.49% in Q4 2022 to 17.03% in Q4 2023, reflecting the company's ability to generate higher profits relative to its total assets.
The Return on total capital has also been on an upward trajectory, increasing from 21.34% in Q4 2022 to 27.25% in Q4 2023. This ratio measures the company's ability to generate returns for both equity and debt holders.
Lastly, the Return on equity (ROE) has shown a similar increasing trend, rising from 18.45% in Q4 2022 to 25.53% in Q4 2023. This metric indicates the company's ability to generate profits for its shareholders from the equity invested in the business.
Overall, Meta Platforms Inc's profitability ratios demonstrate a solid performance and improvement in generating returns for its assets, capital, and equity holders over the examined period.