Meta Platforms Inc. (META)
Debt-to-equity 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-equity ratio | 0.12 | 0.08 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $18,385,000K ÷ $153,168,000K
= 0.12
The debt-to-equity ratio of Meta Platforms Inc has shown a significant increase over the years. In 2019, the company had a debt-to-equity ratio of 0.00, indicating that there was no debt relative to equity. However, starting from 2021, the ratio has been steadily rising, reaching 0.12 by the end of 2023. This indicates that the company's level of debt in relation to equity has increased, suggesting a higher reliance on debt financing to support its operations and growth.
The rising trend in the debt-to-equity ratio may raise concerns among investors and creditors as higher levels of debt could potentially increase financial risk and interest payment obligations for the company. It is important for stakeholders to closely monitor this ratio to assess the company's ability to manage its debt levels effectively and maintain a healthy balance sheet structure.
Peer comparison
Dec 31, 2023