Meta Platforms Inc. (META)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 18,385,000 | 9,923,000 | 0 | — | — |
| Total assets | US$ in thousands | 229,623,000 | 185,727,000 | 165,987,000 | 159,316,000 | 133,376,000 |
| Debt-to-assets ratio | 0.08 | 0.05 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $18,385,000K ÷ $229,623,000K
= 0.08
The debt-to-assets ratio for Meta Platforms Inc has shown a gradual increase over the past five years, indicating a rising level of indebtedness relative to its total assets.
In 2019 and 2020, the company had a debt-to-assets ratio of 0.00, suggesting that there was no debt relative to its total assets during those years. However, starting from 2021, the ratio has increased to 0.08 in 2023, indicating that the company has taken on debt to finance its operations or investments.
While a debt-to-assets ratio of 0.08 is still relatively low, it signals that Meta Platforms Inc has increased its reliance on debt as a source of funding. Investors and creditors may monitor this trend closely to assess the company's ability to manage its debt levels and repayment obligations effectively in the future.
Peer comparison
Dec 31, 2023