Meta Platforms Inc. (META)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.08 | 0.05 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.11 | 0.07 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.12 | 0.08 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.50 | 1.48 | 1.33 | 1.24 | 1.32 |
The solvency ratios of Meta Platforms Inc indicate the company's ability to meet its long-term financial obligations and manage its debt levels effectively.
1. Debt-to-assets ratio: This ratio has been increasing over the years, from 0.00 in 2020 to 0.08 in 2023. This suggests that Meta Platforms Inc has started using more debt to finance its assets, which could indicate a higher level of risk.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also been on the rise, from 0.00 in 2020 to 0.11 in 2023. This indicates that a larger portion of the company's capital structure is being financed through debt, which may increase financial risk.
3. Debt-to-equity ratio: This ratio has followed a similar trend, increasing from 0.00 in 2020 to 0.12 in 2023. A higher debt-to-equity ratio could imply that Meta Platforms Inc relies more on debt financing compared to equity, potentially increasing the company's financial vulnerability.
4. Financial leverage ratio: The financial leverage ratio has fluctuated over the years, reaching 1.50 in 2023. This ratio indicates the extent to which the company employs debt in its capital structure. While a higher financial leverage ratio can amplify profitability, it also increases the risks associated with debt obligations.
Overall, the increasing trend in the solvency ratios of Meta Platforms Inc suggests a growing reliance on debt financing, which may raise concerns about the company's long-term financial sustainability and ability to weather economic downturns or unexpected challenges. Investors and stakeholders should closely monitor these ratios to assess Meta Platforms Inc's financial health and risk profile.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 107.34 | 156.45 | 3,116.87 | 2,333.64 | 1,241.60 |
As the interest coverage ratio data for Meta Platforms Inc is not available in the provided table, it is not possible to conduct a detailed analysis of the company's ability to cover its interest expenses over the past five years. The interest coverage ratio is a metric that indicates a company's ability to pay interest on outstanding debt with its earnings before interest and taxes (EBIT). A higher ratio typically suggests a greater capacity to meet interest obligations.
Without the specific figures for interest coverage ratio for each year, it is challenging to assess the company's financial health in terms of its ability to service its debt through its operating income. It is recommended to refer to the company's financial reports or other reliable sources to obtain the interest coverage ratio data for a more comprehensive analysis and evaluation of Meta Platforms Inc's financial performance.