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Meta Platforms (Meta Platforms) ROA %

: 25.15% (As of Dec. 2023)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Meta Platforms's annualized Net Income for the quarter that ended in Dec. 2023 was $56,068 Mil. Meta Platforms's average Total Assets over the quarter that ended in Dec. 2023 was $222,949 Mil. Therefore, Meta Platforms's annualized ROA % for the quarter that ended in Dec. 2023 was 25.15%.

The historical rank and industry rank for Meta Platforms's ROA % or its related term are showing as below:

META' s ROA % Range Over the Past 10 Years
Min: 8.25   Med: 18.35   Max: 24.32
Current: 19.11

During the past 13 years, Meta Platforms's highest ROA % was 24.32%. The lowest was 8.25%. And the median was 18.35%.

META's ROA % is ranked better than
92.61% of 595 companies
in the Interactive Media industry
Industry Median: -1.77 vs META: 19.11

Meta Platforms ROA % Historical Data

The historical data trend for Meta Platforms's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Meta Platforms Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.02 19.92 24.21 13.19 18.83

Meta Platforms Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.21 12.34 15.93 21.91 25.15

Competitive Comparison

For the Internet Content & Information subindustry, Meta Platforms's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Meta Platforms ROA % Distribution

For the Interactive Media industry and Communication Services sector, Meta Platforms's ROA % distribution charts can be found below:

* The bar in red indicates where Meta Platforms's ROA % falls into.



Meta Platforms ROA % Calculation

Meta Platforms's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=39098/( (185727+229623)/ 2 )
=39098/207675
=18.83 %

Meta Platforms's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=56068/( (216274+229623)/ 2 )
=56068/222948.5
=25.15 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


Meta Platforms  (NAS:META) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=56068/222948.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(56068 / 160444)*(160444 / 222948.5)
=Net Margin %*Asset Turnover
=34.95 %*0.7196
=25.15 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Meta Platforms ROA % Related Terms

Thank you for viewing the detailed overview of Meta Platforms's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Meta Platforms (Meta Platforms) Business Description

Address
1601 Willow Road, Menlo Park, CA, USA, 94025
Meta is the world's largest online social network, with 3.8 billion family of apps monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. The firm's ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm's total revenue, with more than 45% coming from the U.S. and Canada and over 20% from Europe.
Executives
Mark Zuckerberg director, 10 percent owner, officer: COB and CEO C/O META PLATFORMS, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Jennifer Newstead officer: VP and General Counsel C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Christopher K Cox officer: Chief Product Officer C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Javier Olivan officer: Chief Operating Officer 62 RIDGE VIEW DRIVE, ATHERTON X1 94027
Nicholas Clegg officer: President, Global Affairs C/O META PLATFORMS INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Andrew Bosworth officer: Chief Technology Officer C/O META PLATFORMS INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Susan J Li officer: Chief Financial Officer ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Aaron Anderson officer: Chief Accounting Officer C/O PAYPAL HOLDINGS, INC., 2211 NORTH FIRST STREET, SAN JOSE CA 95131
Taylor Susan J.s. officer: Chief Accounting Officer C/O LINKEDIN CORPORATION, 2029 STIERLIN COURT, MOUNTAIN VIEW CA 94043
Marne L. Levine officer: Chief Business Officer C/O CHEGG, INC., 3990 FREEDOM CIRCLE, SANTA CLARA CA 95054
David M. Wehner officer: Chief Financial Officer C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Tony Xu director C/O DOORDASH, INC., 303 2ND STREET, SOUTH TOWER, 8TH FLOOR, SAN FRANCISCO CA 94107
David B. Fischer officer: Chief Revenue Officer C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Michael Todd Schroepfer officer: Chief Technology Officer C/O FACEBOOK INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Marc L Andreessen director C/O ARNOLD & PORTER LLP, 3 EMBARCADERO CENTER 7TH FLOOR, SAN FRANCISCO CA 94111

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