Meta Platforms Inc. (META)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 153,168,000 | 125,713,000 | 124,879,000 | 128,290,000 | 101,054,000 |
| ROE | 25.53% | 18.45% | 31.53% | 22.72% | 18.29% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $39,098,000K ÷ $153,168,000K
= 25.53%
Meta Platforms Inc's return on equity (ROE) has experienced fluctuations over the past five years. In 2023, the ROE stands at 25.53%, reflecting an improvement compared to the previous year where it was 18.45%. However, this level is lower than the ROE reported in 2021, which was 31.53%. The company's ROE in 2020 was 22.72%, showing a stable performance compared to 2019 when it was 18.29%.
Overall, Meta Platforms Inc has shown a generally positive trend in ROE over the past five years, with some fluctuations. A higher ROE indicates that the company is efficiently utilizing its equity to generate earnings for shareholders. The variations in ROE over the years may be influenced by factors such as changes in net income, total equity, or financial leverage. It is crucial for investors to assess the reasons behind these fluctuations to make informed decisions about the company's financial performance and growth prospects.
Peer comparison
Dec 31, 2023