The Cash Ratio measures a company’s ability to meet its short-term obligations with cash and near-cash resources. It is calculated as a company's Cash, Cash Equivalents, Marketable Securities divides by its Total Current Liabilities. Meta Platforms's Cash Ratio for the quarter that ended in Jun. 2022 was 1.82.
Meta Platforms has a Cash Ratio of 1.82. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Meta Platforms's Cash Ratio or its related term are showing as below:
META'
s Cash Ratio Range Over the Past 10 Years
Min: 1.82 Med: 8.25 Max: 12.18
Current: 1.82
During the past 12 years, Meta Platforms's highest Cash Ratio was 12.18. The lowest was 1.82. And the median was 8.25.
META's Cash Ratio is ranked better than 56.41% of 601
companies
in the Interactive Media industry
Industry Median: 1.52
vs META: 1.82
Meta Platforms Cash Ratio Historical Data
The historical data trend for Meta Platforms's Cash Ratio 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
Cash Ratio
11.09
5.86
3.64
4.14
2.27
Meta Platforms Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Cash Ratio
4.31
3.26
2.27
2.08
1.82
Competitive Comparison
For the Internet Content & Information subindustry, Meta Platforms's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio Distribution
For the Interactive Media industry and Communication Services sector, Meta Platforms's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Meta Platforms's Cash Ratio falls into.
Meta Platforms Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Meta Platforms's Cash Ratio 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.
Meta Platforms (NAS:META) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Meta Platforms Cash Ratio Related Terms
Thank you for viewing the detailed overview of Meta Platforms's Cash Ratio 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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