Meta Platforms Inc. (META)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 229,623,000 | 185,727,000 | 165,987,000 | 159,316,000 | 133,376,000 |
| Total stockholders’ equity | US$ in thousands | 153,168,000 | 125,713,000 | 124,879,000 | 128,290,000 | 101,054,000 |
| Financial leverage ratio | 1.50 | 1.48 | 1.33 | 1.24 | 1.32 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $229,623,000K ÷ $153,168,000K
= 1.50
The financial leverage ratio of Meta Platforms Inc has been gradually increasing over the past few years. It stood at 1.32 in 2019, experienced a slight dip in 2020 to 1.24, and then started a consistent upward trend reaching 1.50 in 2023. This indicates that the company has been relying more on debt to finance its operations and investments. A higher financial leverage ratio suggests a higher level of financial risk, as the company has more debt in proportion to its equity. Investors and stakeholders should closely monitor this trend to assess the company's ability to meet its debt obligations and its overall financial health.
Peer comparison
Dec 31, 2023