Meta Platforms Inc. (META)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 62,360,000 | 55,539,000 | 51,434,000 | 45,757,000 | 39,097,000 | 29,733,000 | 22,545,000 | 21,444,000 | 23,200,000 | 28,832,000 | 33,631,000 | 37,338,000 | 39,370,000 | 40,304,000 | 38,956,000 | 33,740,000 | 29,145,000 | 25,275,000 | 23,520,000 | 20,958,000 |
| Total stockholders’ equity | US$ in thousands | 182,637,000 | 164,529,000 | 156,763,000 | 149,529,000 | 153,168,000 | 142,873,000 | 134,033,000 | 124,795,000 | 125,713,000 | 124,094,000 | 125,767,000 | 123,228,000 | 124,879,000 | 133,360,000 | 138,227,000 | 133,657,000 | 128,290,000 | 117,731,000 | 110,447,000 | 105,304,000 |
| ROE | 34.14% | 33.76% | 32.81% | 30.60% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $62,360,000K ÷ $182,637,000K
= 34.14%
The Return on Equity (ROE) for Meta Platforms Inc. has displayed fluctuating trends over the past few years. From March 2020 to December 2021, the ROE showed a positive trajectory, increasing steadily from 19.90% to 31.53%. During this period, Meta Platforms Inc. effectively utilized shareholder equity to generate returns for investors.
However, starting from March 2022, the ROE began to decline, reaching its lowest point of 16.82% by June 2023. This decrease indicates potential challenges or inefficiencies in utilizing equity to generate profits during this period.
Subsequently, there was a notable recovery in ROE from March 2024 onwards, demonstrating a significant improvement in the company's ability to generate profits from shareholder equity. The ROE increased to 34.14% by December 2024, showcasing a promising performance and efficiency in utilizing equity for profitability.
Overall, the ROE trend for Meta Platforms Inc. indicates both positive and challenging periods, highlighting the importance of consistent and effective management of equity to maximize returns for shareholders.
Peer comparison
Dec 31, 2024