Thanks for visiting my Meta (Facebook) Financial Report page. On this page, you will be able to find preliminary information about Meta's current financial performance as well as some historical track records and trends.
For a more detailed examination of Meta's (Facebook)financial performance, I offer two reports, which are "A Beginner's Guide to Meta Financial Analysis" and "Meta Financial Report by Paul Borosky, MBA." Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:
- Summarized income statements for the last 5 years.
- Summarized balance sheets for the last 5 years.
- Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is where I use plain English to explain concepts.
For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Meta Financial Report". The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...
- Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
- "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years (starting in 2021).
- Overall financial analysis summary for the company.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Downloadable PDF Price: $9.99
Downloadable PDF Price: $14.99
Sample Financial Report
The Meta (Facebook) Brief Summary
Facebook stock price started in February of 2019 at $171.20. It ended in January of 2020, with a stock price of $210.47. This is a growth rate annually of 22.94%. From an investor’s perspective, this growth rate well exceeds overall market returns.
Facebook has not paid out dividends in the last five years. The zero dividend payment policy may be due to the company’s need for internal growth. However, over the next several years, investors should expect some type of dividends to be paid once the organization reaches the mature phase of its business cycle.
The current executive team and compensation are as follows.
|Mark Zuckerberg||CEO||22.5 Million|
|David Wehner||CFO||1.26 Million|
|Sheryl Sandberg||COO||5.3 Million|
|Michael Schroepfer||CTO||1.33 Million|
Facebook Financial Report Sources
“Facebook 2019 Company Analysis: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA., and owner of Quality Business Plan. In this book, the author selected Facebook's 2019 10k, 2017 10k annual report, 2016 10k annual report, 2015 10k annual report, and Facebook 2019 10k annual report as the basis for information gathering.
Section 1: Facebook Income Statement Analyzed
In this section, I walk through a broad definition of what an income statement is and why it is important. From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail. After each line item is defined and discussed, I finally offer a summary analysis of Facebook’s important income statement line item trends from 2015 to 2019, in most cases.
Revenue Growth: Facebook’s revenues started 2016 at approximately $18 billion. In the next four years, revenues exploded to over $70.7 billion. Annually, this is about a 41% growth rate. This shows that the firm is in an expansion business cycle. In these cycles, companies often forgo paying out dividends and reinvesting net profits back into the company to sustain the cycle. However, once revenue growth starts to moderate, the firm should consider paying out dividends to supplement modest stock-price growth.
Meta (Facebook) 2021 Income Statement
|R & D||
|Total Operating Expenses||
Section 2: Facebook Balance Sheet Analyzed
For Facebook's balance sheet, I again go through each important line item from the balance sheet. In reviewing each line item, I will define Facebook’s balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2019. Next, I then offer a summary analysis of Facebook’s important balance sheet line items.
Cash: Facebook’s cash position has jumped from $4.9 billion in 2015 to $19 billion in 2019. As a percentage of sales, this rate has not changed. However, such a huge stockpile of cash shows that the firm is not fully exploiting short-term investment opportunities. By keeping less money in cash and more funds in short-term investments, the organization may earn interest on invested funds. As a result, this would lead to better utilization of the firm’s total assets available.
Short-term investments: Facebook has been using short-term investments to assist with optimizing cash usage. In 2015, their short-term investments were approximately $13.5 billion. As of 2019, their short-term investments grew to $35.7 billion. This shows that the company is continuing to move cash from operations to short-term investments. A better strategy may be to divest some of the short-term investments to shareholders in the form of dividend payments.
Meta (Facebook) 2021 Summary Balance Sheet
|Short Term Investment||
|LT Debt - Current||-|
|Total Current Liabilities||
|Total Equity & Liability||
Section 3: Facebook Financial Ratios Analyzed
For this section, I have chosen several different financial ratios to review for Facebook from 2015 to 2019. In reviewing each of Facebook’s financial ratios, I first start by defining the financial ratio. Next, I supply the financial formula for calculating the specific ratio. Finally, I offer a brief analysis of Facebook’s Important Financial ratios.
Facebook Current Ratio
Facebook’s current ratio ended 2015 at 11.25. In 2019, the current ratio dropped to 4.40. This shows that the firm may be deviating some current assets to long-term assets for optimal asset exploitation. Also, such a high current ratio shows that the firm will be solvent for the short term. However, excess current assets often lead to underutilizing total assets.
Facebook Total Asset Turnover
The total asset turnover for Facebook was .36 in 2015. The organization has continually improved its asset utilization to the point where total asset turnover is now .53. As compared to mature industries, their asset utilization is quite low. In other words, the company is not using its assets as efficiently as it should generate revenues.
Facebook Return on Assets
Facebook’s return on assets ended 2015 at 7.5%. In the next five years, the company’s return on assets would grow to approximately 13.9%. This shows that the firm is generating more revenues continuously as compared to total assets. As technological advances continue, the firm should be able to significantly increase this ratio.
Facebook Debt to Equity Ratio
Again, the organization has no debt that we could find in our research. From this, the debt to equity ratio would again be zero.
Facebook Liquidity Ratios 2019
|Net Working Capital||15,499||11,277|
Facebook Asset Utilization 2019
|Total Asset Turnover||0.53||0.57|
|Fixed Asset Turnover||2.00||2.26|
|Days Sales Outstanding||49.14||49.59|
|Accounts Receivable Turnover||7.43||7.36|
|Working Capital Turnover||4.56||4.95|
|Average Days Inventory||#DIV/0!||#DIV/0!|
|Average Days Payable||0.14||0.19|
Facebook Profitability Ratios 2019
|Return on Assets||13.86%||22.72%|
|Return on Equity||18.29%||26.28%|
|Net Profit Margin||26.15%||39.60%|
|Gross Profit Margin||81.94%||83.25%|
|Operating Profit Margin||33.93%||44.62%|
|Basic Earning Power||17.98%||25.60%|
Facebook Long-term Debt 2019
|Times Interest Earned||(29.04)||(55.61)|