Meta Platforms Inc. (META)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 62,360,000 | 39,098,000 | 23,200,000 | 39,370,000 | 29,146,000 |
| Total assets | US$ in thousands | 276,054,000 | 229,623,000 | 185,727,000 | 165,987,000 | 159,316,000 |
| ROA | 22.59% | 17.03% | 12.49% | 23.72% | 18.29% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $62,360,000K ÷ $276,054,000K
= 22.59%
The return on assets (ROA) for Meta Platforms Inc. has shown fluctuations over the past five years. Starting at 18.29% on December 31, 2020, the ROA increased to 23.72% by the end of 2021, indicating improved efficiency in generating profits from its assets. However, by the end of 2022, the ROA decreased to 12.49%, suggesting a decline in the company's ability to generate earnings relative to its assets.
Subsequently, on December 31, 2023, the ROA increased to 17.03%, showing a partial recovery in asset utilization efficiency. Finally, by the end of 2024, the ROA reached 22.59%, surpassing the levels seen in previous years and indicating a return to higher profitability relative to its asset base.
Overall, the trend in Meta Platforms Inc.'s ROA indicates variability in its asset efficiency and profitability performance, highlighting the importance of monitoring and analyzing this metric to assess the company's operational effectiveness and financial health.
Peer comparison
Dec 31, 2024