Meta Platforms Inc. (META)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 28,826,000 | 18,385,000 | 9,923,000 | 0 | — |
| Total stockholders’ equity | US$ in thousands | 182,637,000 | 153,168,000 | 125,713,000 | 124,879,000 | 128,290,000 |
| Debt-to-capital ratio | 0.14 | 0.11 | 0.07 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $28,826,000K ÷ ($28,826,000K + $182,637,000K)
= 0.14
The debt-to-capital ratio of Meta Platforms Inc. has shown an increasing trend over the years, rising from 0.00% as of December 31, 2020, to 0.14% as of December 31, 2024. This indicates that the company has been utilizing more debt relative to its capital structure. While the ratio is still relatively low, investors and creditors may interpret the upward trend as a signal of increased financial leverage and potential risk. It is important for the company to manage its debt levels effectively to maintain a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2024