Facebook Financial Statements and Financial Ratios

Meta (Facebook) Financial Statements and Financial Ratios Analyzed

🚀 Navigate Meta (Facebook)'s 2023 Financial Universe Like a Pro! 📊

Meta (Facebook) 2023 Beginner’s Guide Introduction:

Hello, future finance aficionados! Are you keen to decode the financial intricacies of Meta (Facebook) in 2023? Welcome to "Meta (Facebook) 2023: Beginner's Guide to Financial Analysis," your essential guide from Quality Business Consultant, authored by finance guru Paul Borosky, MBA. This isn't just another financial guide; it's a deep dive into the fiscal dynamics of one of the titans of the tech industry!

Why You'll Love This Guide:

  • Expertise from a Finance Virtuoso: 🎓 Journey through Meta's financial landscape in 2023 with Paul Borosky, MBA, your guide from Quality Business Consultant.
  • Insightful Analysis of Meta's Finances: 📉 Delve into the summary income statements and balance sheets of Meta, unveiling the financial backbone of this tech giant.
  • In-depth Financial Ratio Mastery: 🧮 Decode over twenty crucial financial ratios to gain insights into Meta's financial health.
  • Financial Jargon Made Simple: 📚 Our "In other words" sections translate complex financial terminology into understandable insights.
  • Tailored Analysis Tips: 💡 Leverage Paul's analytical expertise to enhance your financial analysis skills, whether for academic or professional use.
  • Extended Insights with Detailed Report: 🔍 For those seeking deeper financial analysis, our "Financial Analysis & Report" offers an exhaustive look at Meta, combining AI-powered insights with Paul Borosky's expert review.

Guide Highlights:

  • Engaging Legal Disclaimer
  • A forward that sets the stage for your financial exploration
  • Comprehensive reviews of Income Statements and Balance Sheets for 2023
  • Detailed exploration of Financial Ratios to empower your analysis
  • A treasure trove of financial insights at your fingertips!

Table of Contents Sneak Peek:

  • Income Statement Deep Dive: Exploring revenue, expenses, and more
  • Balance Sheet Examination: Breaking down assets, liabilities, and equity – the essentials of financial analysis
  • Financial Ratios Uncovered: Equipping you with the knowledge to analyze Meta's financial strength

Who's This For?

Ideal for the enterprising business student or the budding entrepreneur, this guide is your digital compass for navigating the financial aspects of Meta with ease.

Secure Your Guide:

Elevate your financial literacy with "Meta (Facebook) 2023: Beginner's Guide to Financial Analysis." Transform the world of financial statements into your strategic playground.

Additional Note: This beginner's guide aims to establish a solid foundation in key financial principles, focusing on income statements, balance sheets, and the significant financial ratios necessary for their analysis. It provides a summarized view of Meta's financials, offering specific data, calculations, and ratios for your analytical endeavors. While the guide equips you with the tools for financial analysis, the comprehensive exploration is in your hands. For those seeking an in-depth, company-specific financial examination, our "Financial Analysis & Report" delivers detailed insights, merging AI accuracy with Paul Borosky, MBA's seasoned expertise.

Sincerely,

Paul, MBA.

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Meta 2023 Beginner's Guide to Financial Analysis

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Meta (Facebook) 2021 Financial Report by Paul Borosky, MBA

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Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Meta (Facebook) Summary

Meta (Facebook) is a social media giant that experienced impressive stock price growth between February 2019 and January 2020, with an annual growth rate of 22.94%. The company's decision not to pay dividends in recent years may be attributed to its focus on internal growth. However, it is possible that dividends will be considered as the company matures. Details regarding the current executive team and compensation are not provided in the context. For the most accurate and recent information, referring to official sources and news updates is recommended.

Meta (Facebook) Financial Report Sources

“Facebook 2021 Financial Report and 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 2021 10k, 2017 10k annual report, 2016 10k annual report, 2015 10k annual report, and Facebook's 2019 10k annual report as the basis for information gathering. 

Section 1: Meta (Facebook) Income Statement Analyzed

Section 1 of the analysis focuses on the income statement of Meta (formerly Facebook). It begins by comprehensively explaining the income statement and its significance. The author defines and discusses various line items in the income statement, including revenues, gross profits, and more, offering detailed explanations for each. Following this, the author analyzes the notable trends observed in the income statement line items of Facebook, providing insights into their significance.

Importance of Understanding Meta (Facebook) Income Statement for Financial Analysis

Understanding Meta's (formerly Facebook) income statement is crucial for conducting a comprehensive financial analysis. The income statement provides a snapshot of the company's financial performance over a specific fiscal year period. By analyzing the income statement, investors, analysts, and stakeholders can gain valuable insights into the company's revenue generation, profitability, and expense management.

Revenue figures in the income statement reveal the company's ability to attract users and advertisers and monetize its platforms. Gross profit margin indicates Meta's ability to generate profits from its core operations while operating expenses shed light on the company's cost structure and efficiency. Net income reveals the bottom-line profitability after accounting for taxes and other expenses.

Comparing income statements from different periods allows for trend analysis, highlighting growth patterns, cost fluctuations, and potential risks. It also facilitates benchmarking against competitors within the industry. Moreover, analyzing income statement line items in relation to other financial statements, such as the balance sheet and cash flow statement, provides a holistic understanding of Meta's financial health and performance.

A thorough income statement analysis enables informed decision-making regarding investment, valuation, and strategic planning, helping stakeholders evaluate the company's profitability, operational efficiency, and overall financial stability.

Revenue Growth:

Meta’s revenues were $40.6 billion in 2017.  In the next several years, the company increased its revenues to $117.9 billion in 2021.  On average, this is a 30.7% revenue growth annually.  This trend shows that the organization is able to increase its revenues at an above-average pace year-over-year as compared to other industry competitors, based on my experience and research.  An excellent trend for a multinational organization.

Analyst Grade: A

Meta 2023 Summary Income Statement

Column1 2023 2022 2021 2020 2019
Revenues                  134,902                  116,609                  117,929                    85,965                      70,697
COGS                    25,959                    25,249                    22,649                    16,692                      12,770
Gross Profit                  108,943                    91,360                    95,280                    69,273                      57,927
 
SG&A                    11,408                    11,816                      9,829                      6,564                      10,465
Depreciation                    11,178                      8,686                      7,967                      6,862                        5,741
R & D                    38,483                    35,338                    24,655                    18,447                      13,600
Other
Total Operating Expenses                    88,151                    87,665                    71,176                    53,294                      46,711
EBIT                    46,751                    28,944                    46,753                    32,671                      23,986
Other Income                             -
Interest Expense                         677                        (125)                         531                         509                           826
EBT                    47,428                    28,819                    47,284                    33,180                      24,812
Taxes                      8,330                      5,619                      7,914                      4,034                        6,327
Net Income                   39,098                   23,200                   39,370                   29,146                    18,485

Section 2: Meta (Facebook) Balance Sheet Analyzed

I again go through each vital line item from the balance sheet for Facebook's balance sheet.  In reviewing each line item, I will define Facebook’s balance sheet line items, such as cash, property, plant and equipment, and liabilities.  Next, I then offer a summary analysis of Facebook’s essential balance sheet line items.

Importance of Understanding Meta (Facebook) Balance Sheet for Financial Analysis

Understanding Meta's (formerly Facebook) balance sheet is essential for conducting a comprehensive financial analysis. The balance sheet provides a snapshot of the company's financial position at a specific time, showcasing its assets, liabilities, and shareholders' equity. Analyzing the balance sheet allows investors, analysts, and stakeholders to assess Meta's liquidity, solvency, and overall financial stability. It provides insights into the company's asset composition, including cash, investments, property, and intellectual property, which are crucial for evaluating its ability to meet short-term and long-term obligations.

Liabilities outlined in the balance sheet, such as debt and accounts payable, reveal the company's financial obligations and leverage. By assessing the debt-to-equity ratio and other relevant metrics, stakeholders can gauge Meta's risk exposure and evaluate its ability to service its debt. Shareholders' equity represents the residual interest in the company and reflects its net worth. Analyzing shareholder equity changes over time can indicate the company's profitability and ability to generate retained earnings.

Furthermore, understanding the balance sheet allows for a comprehensive analysis of various financial ratios and metrics, such as the current, debt, and return on equity, providing valuable insights into Meta's financial health, efficiency, and profitability. By examining the balance sheet alongside other financial statements, stakeholders can make informed decisions regarding investment, risk assessment, and strategic planning, enabling a holistic understanding of Meta's financial position and performance.

Sample - Cash:   

Meta’s cash holding was $8 billion in 2017.  As compared to the sales, their cash position was 19.9%.  In the next four years, Meta would increase their cash holdings ending 2021 at $16.6 billion or 14.1% of sales.  This trend indicates that the company can hold less cash as compared to the sales year-over-year and is still over current liabilities sufficiently.  This is an excellent trend from an investor’s perspective.

Analyst Grade: A

Meta 2023 Summary Balance Sheet

Column1 2023 2022 2021 2020 2019
Cash                      41,862                  14,681                  16,601                  17,576                  19,079
Short Term Investment                      23,541                  26,057                  31,397                  44,378                  35,776
Account Receivable                      16,169                  13,466                  14,039                  11,335                    9,518
Inventory
Other
Current Assets                    85,365                59,549                66,666                75,670                66,225
Net PPE                      96,587                  79,518                  57,809                  45,633                  35,323
Goodwill                      20,654                  20,306                  19,197                  19,050                  18,715
Other
Total Assets                  229,623              185,727              165,987              159,316              133,376
Accounts Payable                        4,849                    4,990                    4,083                    1,331                    1,363
Accrued Expense                      24,625                  19,552                  14,312                  11,152                  11,735
Accrued Taxes                         -
Notes Payable                         -
LT Debt - Current                         -
Other                         -
Total Current Liabilities                      31,960                  27,026                  21,135                  14,981                  15,053
LT Debt                      18,385                    9,923                         -                         -                         -
Other
Total Liabilities                    76,455                60,014                41,108                31,026                32,322
Common Stock                      73,253                  64,444                  55,811                  50,018                  45,851
Treasury                         -
Retained Earnings                      82,070                  64,799                  69,761                  77,345                  55,692
Other
Total Equity                  153,168              125,713              124,879              128,290              101,054
Total Equity & Liability                  229,623              185,727              165,987              159,316              133,376

Section 3: Meta (Facebook) Financial Ratios Analyzed

For this section, I have chosen several financial ratios for Meta (Facebook) to review.  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. 

Importance of Understanding Meta (Facebook) Financial Ratios for Financial Analysis

Understanding Meta's (formerly Facebook) balance sheet is essential for conducting a comprehensive financial analysis. The balance sheet provides a snapshot of the company's financial position at a specific time, showcasing its assets, liabilities, and shareholders' equity. Analyzing the balance sheet allows investors, analysts, and stakeholders to assess Meta's liquidity, solvency, and overall financial stability. It provides insights into the company's asset composition, including cash, investments, property, and intellectual property, which are crucial for evaluating its ability to meet short-term and long-term obligations.

Liabilities outlined in the balance sheet, such as debt and accounts payable, reveal the company's financial obligations and leverage. By assessing the debt-to-equity ratio and other relevant metrics, stakeholders can gauge Meta's risk exposure and evaluate its ability to service its debt. Shareholders' equity represents the residual interest in the company and reflects its net worth. Analyzing shareholder equity changes over time can indicate the company's profitability and ability to generate retained earnings.

Furthermore, understanding the balance sheet allows for a comprehensive analysis of various financial ratios and metrics, such as the current, debt, and return on equity, providing valuable insights into Meta's financial health, efficiency, and profitability. By examining the balance sheet alongside other financial statements, stakeholders can make informed decisions regarding investment, risk assessment, and strategic planning, enabling a holistic understanding of Meta's financial position and performance.

Meta (Facebook) Current Ratio

Meta’s current ratio was 12.9 in 2017.  In the next several years, the company reduced its current ratio to 3.1 in 2021.  This trend indicates that the company is taking steps to improve its current asset utilization.  However, a 3.1 current ratio is still excessive as compared to other multinational organizations.  From this, the company still needs to improve its current asset-handling procedures further.  From an investor’s perspective, this is a poor trend.

Analyst Grade: B

Meta (Facebook) Return on Assets

Meta’s return on assets (ROA) was 18.8% in 2017.  In the next several years, the organization’s return on assets will increase to 23.7% in 2021.  This trend indicates that the company is doing a better job year-over-year in aligning assets with generating revenues.  From an investor’s perspective, this is a good trend.

Analyst Grade: A