Meta Platforms Inc. (META)
Debt-to-equity 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-equity ratio | 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 | 0.00 | 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 for Meta Platforms Inc has been relatively low and stable over the past eight quarters, ranging from 0.00 to 0.14. This indicates that the company has been using a conservative amount of debt relative to equity to finance its operations and investments.
In the most recent quarter, Q4 2023, the debt-to-equity ratio increased slightly to 0.12 from 0.08 in the previous quarter, Q3 2023. This uptick suggests that the company may have taken on slightly more debt in relation to its equity, potentially to fund expansion or other capital expenditures.
Overall, Meta Platforms Inc's consistent low debt-to-equity ratio reflects a prudent financial strategy that minimizes leverage and associated risks. It also demonstrates the company's ability to maintain a strong equity position relative to its debt levels, which can provide stability and financial flexibility in both favorable and challenging economic conditions.
Peer comparison
Dec 31, 2023