Meta Platforms Inc. (META)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 182,637,000 | 153,168,000 | 125,713,000 | 124,879,000 | 128,290,000 |
| ROE | 34.14% | 25.53% | 18.45% | 31.53% | 22.72% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $62,360,000K ÷ $182,637,000K
= 34.14%
Meta Platforms Inc.'s return on equity (ROE) has displayed fluctuations over the past five years. ROE increased from 22.72% on December 31, 2020, to 31.53% on December 31, 2021, reflecting improved efficiency in generating profits from shareholders' equity. However, there was a decline in ROE to 18.45% on December 31, 2022, indicating a reduction in profitability relative to the equity invested. Subsequently, Meta Platforms Inc. managed to enhance its ROE to 25.53% on December 31, 2023, signaling a recovery in generating returns for equity holders. The most recent data point shows a significant improvement in ROE to 34.14% on December 31, 2024, suggesting enhanced profitability utilizing shareholders' equity more effectively. Overall, Meta Platforms Inc.'s performance in ROE demonstrates varying levels of profitability and efficiency in utilizing shareholder funds over the past five years.
Peer comparison
Dec 31, 2024