Meta Platforms Inc. (META)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 276,054,000 | 229,623,000 | 185,727,000 | 165,987,000 | 159,316,000 |
| Total stockholders’ equity | US$ in thousands | 182,637,000 | 153,168,000 | 125,713,000 | 124,879,000 | 128,290,000 |
| Financial leverage ratio | 1.51 | 1.50 | 1.48 | 1.33 | 1.24 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $276,054,000K ÷ $182,637,000K
= 1.51
The financial leverage ratio of Meta Platforms Inc. has been gradually increasing over the past five years. Starting at 1.24 in December 31, 2020, the ratio has risen to 1.51 by December 31, 2024. This indicates that the company's reliance on debt to finance its operations and growth has been growing steadily. An increasing financial leverage ratio suggests that a larger portion of the company's assets is funded by debt, which could lead to higher financial risk due to interest payments and potential repayment obligations. It is important for investors and analysts to closely monitor this trend to assess Meta Platforms' ability to manage its debt levels effectively and sustain its financial health in the long term.
Peer comparison
Dec 31, 2024