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 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!


Paul, MBA.

PDF/Downloadable Versions

Facebook 2021 Beginner's Guide to Financial Analysis

Downloadable PDF Price: $9.99

Facebook Financial Report by Paul Borosky, MBA.

Downloadable PDF Price: $14.99

Sample Financial Report

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

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.

Executive Team
Executives Title Pay Amount
Mark Zuckerberg CEO 22.5 Million
David Wehner CFO 1.26 Million
Sheryl Sandberg COO 5.3 Million
Michael Schroepfer CTO 1.33 Million
Susan Taylor CAO N/A

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



2020 2019 2018




                   85,965                    70,697                    55,838




                   16,692                    12,770                      9,355


Gross Profit


                   69,273                    57,927                    46,483




                     6,564                    10,465                      3,451




                   66,862                      5,741                      4,315


R & D


                   18,447                    13,600                    10,273


Total Operating Expenses


                   91,873                    29,806                    18,039




                   32,671                    23,986                    24,913


Other Income                            -                            -                             -
Interest Expense


                       (509)                        (826)                        (448)




                   33,180                    24,812                    25,361




                     4,034                      6,327                      3,249


Net Income


                  29,146                   18,485                   22,112



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



2020 2019 2018




                 17,576                  19,079                  10,019


Short Term Investment


                 44,378                  35,776                  31,095


Account Receivable


                 11,335                    9,518                    7,587


Current Assets


               75,670                66,225                50,480




                 45,633                  35,323                  24,683




                 19,050                  18,715                  18,301


Total Assets


             159,316              133,376                97,334


Accounts Payable


                   1,331                    1,363                       820


Accrued Expense


                 11,152                  11,735                    5,509


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


                 14,981                  15,053                    7,017


LT Debt
Total Liabilities


               31,026                32,322                13,207


Common Stock


                 50,018                  45,851                  42,906


Treasury                         -
Retained Earnings


                 77,345                  55,692                  41,981


Total Equity


             128,290              101,054                84,127


Total Equity & Liability


             159,316              133,376                97,334


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

Ratios 2019 2018 2017 2016 2015
Current Ratio                           4.40                    7.19
Cash Ratio                           1.27                    1.43
Quick Ratio                           4.40                    7.19
Net Working Capital                       15,499                11,277

Facebook Asset Utilization 2019

Ratios 2019 2018 2017 2016 2015
Total Asset Turnover                           0.53                    0.57
Fixed Asset Turnover                           2.00                    2.26
Days Sales Outstanding                         49.14                  49.59
Inventory Turnover #DIV/0! #DIV/0!
Accounts Receivable Turnover                           7.43                    7.36
Working Capital Turnover                           4.56                    4.95
AP Turnover                         51.87                  68.10
Average Days Inventory #DIV/0! #DIV/0!
Average Days Payable                           0.14                    0.19

Facebook Profitability Ratios 2019

Ratios 2019 2018 2017 2016 2015
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%
ROCE 20.27% 27.58%
Capital Employed                     118,323                90,317
ROIC 35.16% 60.40%

Facebook Long-term Debt 2019

Ratios 2019 2018 2017 2016 2015
Debt Ratio 0.00% 0.00%
Debt/Equity 0.00% 0.00%
Times Interest Earned                       (29.04)                (55.61)