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Meta Platforms (NAS:META) Financial Strength

: 7 (As of Dec. 2022)
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Meta Platforms has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate Meta Platforms's interest coverage with the available data. Meta Platforms's debt to revenue ratio for the quarter that ended in Dec. 2022 was 0.21. As of today, Meta Platforms's Altman Z-Score is 6.67.


Competitive Comparison

For the Internet Content & Information subindustry, Meta Platforms's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Meta Platforms's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.



Meta Platforms Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Meta Platforms's Interest Expense for the months ended in Dec. 2022 was $0 Mil. Its Operating Income for the months ended in Dec. 2022 was $6,399 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2022 was $25,224 Mil.

Meta Platforms's Interest Coverage for the quarter that ended in Dec. 2022 is

GuruFocus does not calculate Meta Platforms's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Meta Platforms's Debt to Revenue Ratio for the quarter that ended in Dec. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Dec. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1367 + 25224) / 128660
=0.21

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Meta Platforms has a Z-score of 6.67, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 6.67 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Meta Platforms has the Financial Strength Rank of 7.


Meta Platforms Financial Strength Related Terms

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


Meta Platforms (NAS:META) Business Description

Meta Platforms logo
Address
1601 Willow Road, Menlo Park, CA, USA, 94025
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.
Executives
Susan J Li officer: Chief Financial Officer ALASKA AIR GROUP, INC., 19300 INTERNATIONAL BLVD, SEATTLE WA 98188
Javier Olivan officer: Chief Operating Officer 62 RIDGE VIEW DRIVE, ATHERTON X1 94027
Andrew Bosworth officer: Chief Technology Officer C/O META PLATFORMS INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Nicholas Clegg officer: President, Global Affairs C/O META PLATFORMS 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
Marne L. Levine officer: Chief Business Officer C/O CHEGG, INC., 3990 FREEDOM CIRCLE, SANTA CLARA CA 95054
Christopher K Cox officer: Chief Product 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
Kenneth I Chenault director AMERICAN EXPRESS COMPANY, 200 VESEY STREET, NEW YORK NY 10285
Jeffrey D Zients director
Peggy Alford director 435 TASSO STREET, PALO ALTO CA 94301
Peter Thiel director 9200 SUNSET BOULEVARD, SUITE 1110, WEST HOLLYWOOD CA 90069
Andrew Houston director 333 BRANNAN STREET, SAN FRANCISCO CA 94107
Robert M Kimmitt director C/O FACEBOOK, INC., 1601 WILLOW ROAD, MENLO PARK CA 94025
Sheryl Sandberg officer: Chief Operating Officer 1 FACEBOOK WAY, MENLO PARK CA 94025

Meta Platforms (NAS:META) Headlines

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