Meta Platforms Inc. (META)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.10 | 0.11 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.05 | 0.05 | 0.06 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.14 | 0.15 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.07 | 0.07 | 0.07 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
| 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 |
Meta Platforms Inc. has shown stability in its solvency ratios over the years. The Debt-to-assets ratio has remained relatively low, fluctuating around 0.05 to 0.11, indicating that the company's assets are financed mainly by equity rather than debt.
The Debt-to-capital ratio has also been low, ranging from 0.07 to 0.15, suggesting that the company has a relatively low level of debt compared to its capital structure. This indicates a conservative approach to financing its operations.
The Debt-to-equity ratio has shown a similar pattern, hovering between 0.08 and 0.18, reflecting a comfortable level of equity financing relative to debt. This ratio indicates that shareholders' equity plays a significant role in funding the company's operations.
The Financial leverage ratio has increased slightly over the years, from 1.31 to 1.51, indicating a slight increase in the company's reliance on debt to fund its operations. However, the overall level of financial leverage is moderate, suggesting that Meta Platforms Inc. has maintained a balanced approach in managing its capital structure.
In conclusion, Meta Platforms Inc. exhibits sound solvency ratios, reflecting a conservative approach to debt management and a strong financial position supported by a healthy equity base.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 99.40 | 104.87 | 110.52 | 102.78 | 104.82 | 78.23 | 85.11 | 122.34 | 164.46 | 2,195.69 | 2,493.12 | 2,743.69 | 2,922.06 | 3,129.53 | 2,970.67 | 2,543.73 | 2,333.64 | 1,307.00 | 1,268.14 | 1,264.86 |
Meta Platforms Inc.'s interest coverage ratio has shown a generally positive trend from March 2020 to September 2022, indicating the company's ability to comfortably cover its interest expenses with its operating income. The ratio peaked at 3,129.53 in September 2021, reflecting a strong ability to service its debt obligations. However, from December 2022 to December 2024, there was a significant decline in the interest coverage ratio, dropping to 99.40 by the end of December 2024. This downward trend suggests a potential deterioration in Meta Platforms Inc.'s ability to cover its interest expenses with its operating income, signaling a need for closer monitoring of the company's financial health and debt management practices.