Meta Platforms Inc. (META)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 39,098,000 | 23,200,000 | 39,370,000 | 29,146,000 | 18,485,000 |
| Total assets | US$ in thousands | 229,623,000 | 185,727,000 | 165,987,000 | 159,316,000 | 133,376,000 |
| ROA | 17.03% | 12.49% | 23.72% | 18.29% | 13.86% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $39,098,000K ÷ $229,623,000K
= 17.03%
Meta Platforms Inc's return on assets (ROA) has shown fluctuating trends over the past five years. In 2023, the company achieved an ROA of 17.03%, indicating that it generated $0.17 in net income for every dollar of assets. This represents an improvement compared to the previous year, where the ROA was 12.49%. However, the 2023 ROA is lower than the peak ROA of 23.72% in 2021.
The 2023 ROA of 17.03% suggests that Meta Platforms Inc effectively utilized its assets to generate profits, but there may be room for further improvement to reach the levels seen in 2021. It is essential for the company to continue optimizing its asset utilization efficiency to maximize profitability and shareholder value in the future.
Peer comparison
Dec 31, 2023