Meta Platforms Inc. (META)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 276,054,000 | 256,408,000 | 230,238,000 | 222,844,000 | 229,623,000 | 216,274,000 | 206,688,000 | 184,491,000 | 185,727,000 | 178,894,000 | 169,779,000 | 164,218,000 | 165,987,000 | 169,585,000 | 170,609,000 | 163,523,000 | 159,316,000 | 146,437,000 | 139,691,000 | 138,371,000 |
| 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 |
| Financial leverage ratio | 1.51 | 1.56 | 1.47 | 1.49 | 1.50 | 1.51 | 1.54 | 1.48 | 1.48 | 1.44 | 1.35 | 1.33 | 1.33 | 1.27 | 1.23 | 1.22 | 1.24 | 1.24 | 1.26 | 1.31 |
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 shown some fluctuations over the past few years, ranging from 1.22 to 1.56. The ratio measures the company's level of debt in relation to its equity, indicating the extent to which the company is relying on debt financing.
From March 31, 2020, to June 30, 2022, the financial leverage ratio remained relatively stable, hovering around 1.20 to 1.35. However, there was a notable increase in the ratio from September 30, 2022, to September 30, 2024, where it peaked at 1.56. This indicates that Meta Platforms Inc. increased its reliance on debt during this period.
The trend of increasing financial leverage could signal that the company is taking on more debt to fuel its operations or investment activities. Investors and analysts may want to further investigate the reasons behind this increase in leverage to assess the potential risks associated with higher debt levels.
Overall, the financial leverage ratio of Meta Platforms Inc. suggests a gradual increase in leverage over the years, highlighting the evolving capital structure and financing decisions of the company.
Peer comparison
Dec 31, 2024