Meta Platforms Inc. (META)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.11 | 0.11 | 0.12 | 0.07 | 0.07 | 0.07 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 shown some variability over the past eight quarters. The ratio ranged from 0.00 to 0.12 during this period. In Q1 and Q2 of 2022, the company had a debt-to-capital ratio of 0.00, indicating a debt-free capital structure during that period.
However, starting from Q3 2022, the ratio increased to 0.07 and has been consistent at that level until Q2 2023. In Q4 2023, the ratio increased slightly to 0.11. This suggests that Meta Platforms Inc has been utilizing debt financing to a moderate extent relative to its capital structure, with debt comprising around 11% to 12% of the total capital in recent quarters.
Overall, the company has maintained a relatively conservative approach to debt usage, as indicated by the relatively low debt-to-capital ratios observed over the period.
Peer comparison
Dec 31, 2023