ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Meta Platforms's annualizedNet Income for the quarter that ended in Jun. 2022 was $26,748 Mil.
Meta Platforms's average Total Assets over the quarter that ended in Jun. 2022 was $166,999 Mil. Therefore, Meta Platforms's annualized ROA % for the quarter that ended in Jun. 2022 was 16.02%.
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: 0.49 Med: 16.95 Max: 24.32
Current: 20.01
During the past 12 years, Meta Platforms's highest ROA % was 24.32%. The lowest was 0.49%. And the median was 16.95%.
META's ROA % is ranked better than 90.91% of 605
companies
in the Interactive Media industry
Industry Median: 0.61
vs META: 20.01
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
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
ROA %
21.32
24.32
16.02
19.92
24.21
Meta Platforms Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
ROA %
24.89
21.62
24.52
18.09
16.02
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. 2021 is calculated as:
* 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 (Jun. 2022) 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 banks 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:
Note:
The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) 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 is the world's largest online social network, with 2.5 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. Meta refers to this as Facebook Watch. 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 50% coming from the U.S. and Canada and 25% from Europe. With gross margins above 80%, Meta operates at a 30%-plus margin.
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