Facebook Financial Statements and Financial Ratios

Meta (Facebook) Financial Statements and Financial Ratios Analyzed

Hey All,

Thanks for visiting my Meta (Facebook) Financial Report page. On this page, you will find preliminary information about Meta's current financial performance and 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 2021" and "Meta 2021 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, buy my "Meta Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus much 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.
  • Overall financial analysis summary for the company.

Enjoy the preliminary information and buy the financial report for a more detailed analysis!

Sincerely,

Paul, MBA.

PDF/Downloadable Versions

Facebook 2021 Beginner's Guide to Financial Analysis

Click Below for the CURRENT

Downloadable PDF Price!!

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

Click Below for the CURRENT

Downloadable PDF Price!!

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 (Facebook) 2021 Income Statement

Column1

2021

2020 2019 2018

2017

Revenues

                 117,929

                   85,965                    70,697                    55,838

                     40,653

COGS

                   22,649

                   16,692                    12,770                      9,355

                       5,454

Gross Profit

                   95,280

                   69,273                    57,927                    46,483

                     35,199

 
SG&A

                     9,829

                     6,564                    10,465                      3,451

                       2,517

Depreciation

                     7,967

                   66,862                      5,741                      4,315

                       3,723

R & D

                   24,655

                   18,447                    13,600                    10,273

                       7,754

Other
Total Operating Expenses

                   42,451

                   91,873                    29,806                    18,039

                     13,994

EBIT

                   46,753

                   32,671                    23,986                    24,913

                     20,203

Other Income                            -                            -                             -
Interest Expense

                       (531)

                       (509)                        (826)                        (448)

                        (391)

EBT

                   47,284

                   33,180                    24,812                    25,361

                     20,594

Taxes

                     7,914

                     4,034                      6,327                      3,249

                       4,660

Net Income

                  39,370

                  29,146                   18,485                   22,112

                   15,934

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 (Facebook) 2021 Summary Balance Sheet

Column1

2021

2020 2019 2018

2017

Cash

                     16,601

                 17,576                  19,079                  10,019

                   8,079

Short Term Investment

                     31,397

                 44,378                  35,776                  31,095

                 33,632

Account Receivable

                     14,039

                 11,335                    9,518                    7,587

                   5,832

Inventory
Other
Current Assets

                   66,666

               75,670                66,225                50,480

               48,563

Net PPE

                     57,809

                 45,633                  35,323                  24,683

                 13,721

Goodwill

                     19,197

                 19,050                  18,715                  18,301

                 18,221

Other
Total Assets

                 165,987

             159,316              133,376                97,334

               84,524

Accounts Payable

                       4,083

                   1,331                    1,363                       820

                      380

Accrued Expense

                     14,312

                 11,152                  11,735                    5,509

                   2,892

Accrued Taxes                         -
Notes Payable                         -
LT Debt - Current                         -
Other                         -
Total Current Liabilities

                     21,135

                 14,981                  15,053                    7,017

                   3,760

LT Debt
Other
Total Liabilities

                   41,108

               31,026                32,322                13,207

               10,177

Common Stock

                     55,811

                 50,018                  45,851                  42,906

                 40,584

Treasury                         -
Retained Earnings

                     69,761

                 77,345                  55,692                  41,981

                 33,990

Other
Total Equity

                 124,879

             128,290              101,054                84,127

               74,347

Total Equity & Liability

                 165,987

             159,316              133,376                97,334

               84,524

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