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.
PDF/Downloadable Versions
Click Below for the CURRENT
Downloadable PDF Price!!
Click Here to Buy Now!Click Below for the CURRENT
Downloadable PDF Price!!
Click Here to Buy Now!Sample Financial Report
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.Â
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:  Â
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.Â
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