Meta Platforms Inc. (META)
Debt-to-equity 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-equity ratio | 0.16 | 0.12 | 0.08 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $28,826,000K ÷ $182,637,000K
= 0.16
The debt-to-equity ratio of Meta Platforms Inc. has shown an increasing trend over the years, rising from 0.00 in 2020 and remaining unchanged at 0.00 in 2021, to 0.08 in 2022, 0.12 in 2023, and further increasing to 0.16 in 2024. This indicates that the company has been gradually increasing its reliance on debt financing compared to equity financing over the analyzed period. The higher debt-to-equity ratio can suggest that Meta Platforms Inc. might be taking on more debt to fund its operations, investments, or growth strategies. Investors and creditors typically view a higher debt-to-equity ratio as an indicator of increased financial risk, as higher debt levels could potentially burden the company with higher interest payments and financial obligations. It is crucial for stakeholders to monitor this ratio closely to assess Meta Platforms Inc.'s financial health and sustainability in the long term.
Peer comparison
Dec 31, 2024