Market Cap : 485.1 B | Enterprise Value : 460.68 B | PE Ratio : 14.95 | PB Ratio : 3.87 |
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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 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:
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 thanThe 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.
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.
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's annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:
ROA % | = | Net Income (A: Dec. 2021 ) | / | ( (Total Assets (A: Dec. 2020 ) | + | Total Assets (A: Dec. 2021 )) | / count ) |
= | 39370 | / | ( (159316 | + | 165987) | / 2 ) | |
= | 39370 | / | 162651.5 | ||||
= | 24.21 % |
Meta Platforms's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:
ROA % | = | Net Income (Q: Jun. 2022 ) | / | ( (Total Assets (Q: Mar. 2022 ) | + | Total Assets (Q: Jun. 2022 )) | / count ) |
= | 26748 | / | ( (164218 | + | 169779) | / 2 ) | |
= | 26748 | / | 166998.5 | ||||
= | 16.02 % |
* 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.
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:
ROA % | (Q: Jun. 2022 ) | ||
= | Net Income | / | Total Assets |
= | 26748 | / | 166998.5 |
= | (Net Income / Revenue) | * | (Revenue / Total Assets) |
= | (26748 / 115288) | * | (115288 / 166998.5) |
= | Net Margin % | * | Asset Turnover |
= | 23.2 % | * | 0.6904 |
= | 16.02 % |
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.
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.
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.
Bosworth Andrew | officer: Chief Technology Officer | C/O META PLATFORMS INC. 1601 WILLOW ROAD MENLO PARK CA 94025 |
Clegg Nicholas | officer: President, Global Affairs | C/O META PLATFORMS INC. 1601 WILLOW ROAD MENLO PARK CA 94025 |
Xu Tony | director | C/O DOORDASH, INC. 303 2ND STREET, SOUTH TOWER, 8TH FLOOR SAN FRANCISCO CA 94107 |
Levine Marne L. | officer: Chief Business Officer | C/O CHEGG, INC. 3990 FREEDOM CIRCLE SANTA CLARA CA 95054 |
Cox Christopher K | officer: Chief Product Officer | C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025 |
Andreessen Marc L | director | C/O ARNOLD & PORTER LLP 3 EMBARCADERO CENTER 7TH FLOOR SAN FRANCISCO CA 94111 |
Chenault Kenneth I | director | AMERICAN EXPRESS COMPANY 200 VESEY STREET NEW YORK NY 10285 |
Zients Jeffrey D | director | |
Alford Peggy | director | 435 TASSO STREET PALO ALTO CA 94301 |
Thiel Peter | director | 9200 SUNSET BOULEVARD SUITE 1110 WEST HOLLYWOOD CA 90069 |
Houston Andrew | director | 333 BRANNAN STREET SAN FRANCISCO CA 94107 |
Kimmitt Robert M | director | C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025 |
Sandberg Sheryl | officer: Chief Operating Officer | 1 FACEBOOK WAY MENLO PARK CA 94025 |
Killefer Nancy | director | 3170 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042 |
Travis Tracey Thomas | director |
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