Meta Platforms Inc. (META)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 46,751,000 | 36,766,000 | 28,682,000 | 27,648,000 | 28,945,000 | 35,131,000 | 39,890,000 | 43,899,000 | 46,753,000 | 46,943,000 | 44,560,000 | 38,156,000 | 32,671,000 | 28,754,000 | 27,899,000 | 26,562,000 | 23,986,000 | 22,948,000 | 21,544,000 | 22,781,000 |
| Long-term debt | US$ in thousands | 18,385,000 | 18,383,000 | 18,382,000 | 9,925,000 | 9,923,000 | 9,922,000 | — | — | 0 | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 101,054,000 | 93,999,000 | 88,762,000 | 86,516,000 |
| Return on total capital | 27.25% | 22.80% | 18.82% | 20.52% | 21.34% | 26.21% | 31.72% | 35.62% | 37.44% | 35.20% | 32.24% | 28.55% | 25.47% | 24.42% | 25.26% | 25.22% | 23.74% | 24.41% | 24.27% | 26.33% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $46,751,000K ÷ ($18,385,000K + $153,168,000K)
= 27.25%
Return on total capital is a key profitability ratio that indicates how effectively a company is utilizing its total capital to generate profits. Meta Platforms Inc's return on total capital has fluctuated over the past eight quarters, ranging from a low of 18.82% in Q2 2023 to a peak of 35.62% in Q1 2022. The company's return on total capital in Q4 2023 stands at 27.25%, indicating a strong performance in generating profits relative to its total capital employed during this period. Overall, the trend in Meta Platforms Inc's return on total capital shows some variability, suggesting the company's ability to generate profits with its total capital has shown resilience over time, albeit with some fluctuations.
Peer comparison
Dec 31, 2023