Meta Platforms Inc. (META)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 28,826,000 | 28,823,000 | 18,389,000 | 18,387,000 | 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 | 182,637,000 | 164,529,000 | 156,763,000 | 149,529,000 | 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 |
| Debt-to-equity ratio | 0.16 | 0.18 | 0.12 | 0.12 | 0.12 | 0.13 | 0.14 | 0.08 | 0.08 | 0.08 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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
Based on the provided data, Meta Platforms Inc.'s debt-to-equity ratio has been relatively stable at 0.00 from March 2020 to June 2022. This indicates that the company had no debt or very minimal debt compared to its equity during this period.
Starting from September 2022, there has been a noticeable increase in the debt-to-equity ratio, reaching 0.08 by December 2022. The ratio continued to rise gradually, reaching 0.18 by September 2024. This increase suggests that Meta Platforms Inc. has taken on more debt relative to its equity, indicating a higher level of financial leverage.
The rise in the debt-to-equity ratio from 0.00 to 0.18 over the period under review may suggest that the company has been deploying debt as a source of finance, whether for growth opportunities, investments, or other strategic initiatives. This can increase both the potential returns and risks for the company and its shareholders.
It is important for investors and stakeholders to closely monitor Meta Platforms Inc.'s debt levels and its ability to manage and service its debt obligations while maintaining a healthy balance between debt and equity to ensure the company's financial stability and sustainability in the long term.
Peer comparison
Dec 31, 2024