Meta Platforms Inc. (META)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 153,168,000 | 125,713,000 | 124,879,000 | 128,290,000 | 101,054,000 |
| Debt-to-capital ratio | 0.11 | 0.07 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $18,385,000K ÷ ($18,385,000K + $153,168,000K)
= 0.11
The debt-to-capital ratio of Meta Platforms Inc has been gradually increasing over the past five years, indicating a higher proportion of debt in the company's capital structure. As of December 31, 2023, the ratio stands at 0.11, which signifies that 11% of the company's capital is funded by debt. This represents a significant rise from the previous year's ratio of 0.07.
The sudden increase in the debt-to-capital ratio from 0.00 in 2021 and previous years may suggest that Meta Platforms Inc has taken on more debt to fund its operations, acquisitions, or other strategic initiatives. It is essential to monitor this trend closely as higher debt levels could potentially increase the company's financial risk and impact its overall financial health and stability.
Further analysis and consideration of the company's overall financial condition, debt repayment capabilities, and future growth prospects would provide a more comprehensive assessment of the implications of the rising debt-to-capital ratio for Meta Platforms Inc.
Peer comparison
Dec 31, 2023