META Profitability Analysis: Past Growth, Margins, Return on Capital, Free Cash Flow, and more - Meta Platforms Inc - Alpha Spread

Meta Platforms Inc
NASDAQ:META

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Meta Platforms Inc
NASDAQ:META
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Price: 557.3642 USD 3.61% Market Closed
Market Cap: 1.4T USD
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Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Meta Platforms Inc

Revenue
149.8B USD
Cost of Revenue
-27.7B USD
Gross Profit
122.1B USD
Operating Expenses
-61.4B USD
Operating Income
60.6B USD
Other Expenses
-9.2B USD
Net Income
51.4B USD

Margins Comparison
Meta Platforms Inc Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Meta Platforms Inc
NASDAQ:META
1.4T USD
81%
40%
34%
US
Alphabet Inc
NASDAQ:GOOGL
2T USD
57%
31%
27%
CN
Tencent Holdings Ltd
HKEX:700
3.6T HKD
51%
31%
24%
US
Reelcause Inc
OTC:RCIT
301.8B USD
17%
4%
0%
JP
LY Corp
XMUN:YOJ
36.1B EUR
72%
12%
7%
CN
Baidu Inc
NASDAQ:BIDU
31B USD
52%
17%
14%
CN
Kuaishou Technology
HKEX:1024
183B HKD
54%
11%
11%
JP
Z Holdings Corp
TSE:4689
3T JPY
72%
12%
7%
US
Pinterest Inc
NYSE:PINS
21.2B USD
79%
3%
6%
KR
Naver Corp
KRX:035420
24.3T KRW
0%
16%
15%
AU
REA Group Ltd
ASX:REA
26.1B AUD
85%
42%
18%
Country US
Market Cap 1.4T USD
Gross Margin
81%
Operating Margin
40%
Net Margin
34%
Country US
Market Cap 2T USD
Gross Margin
57%
Operating Margin
31%
Net Margin
27%
Country CN
Market Cap 3.6T HKD
Gross Margin
51%
Operating Margin
31%
Net Margin
24%
Country US
Market Cap 301.8B USD
Gross Margin
17%
Operating Margin
4%
Net Margin
0%
Country JP
Market Cap 36.1B EUR
Gross Margin
72%
Operating Margin
12%
Net Margin
7%
Country CN
Market Cap 31B USD
Gross Margin
52%
Operating Margin
17%
Net Margin
14%
Country CN
Market Cap 183B HKD
Gross Margin
54%
Operating Margin
11%
Net Margin
11%
Country JP
Market Cap 3T JPY
Gross Margin
72%
Operating Margin
12%
Net Margin
7%
Country US
Market Cap 21.2B USD
Gross Margin
79%
Operating Margin
3%
Net Margin
6%
Country KR
Market Cap 24.3T KRW
Gross Margin
0%
Operating Margin
16%
Net Margin
15%
Country AU
Market Cap 26.1B AUD
Gross Margin
85%
Operating Margin
42%
Net Margin
18%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Meta Platforms Inc Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Meta Platforms Inc
NASDAQ:META
1.4T USD
35%
24%
32%
33%
US
Alphabet Inc
NASDAQ:GOOGL
2T USD
31%
22%
31%
32%
CN
Tencent Holdings Ltd
HKEX:700
3.6T HKD
19%
10%
16%
13%
US
Reelcause Inc
OTC:RCIT
301.8B USD
-3%
0%
27%
-9%
JP
LY Corp
XMUN:YOJ
36.1B EUR
4%
1%
3%
3%
CN
Baidu Inc
NASDAQ:BIDU
31B USD
8%
5%
7%
10%
CN
Kuaishou Technology
HKEX:1024
183B HKD
30%
14%
24%
39%
JP
Z Holdings Corp
TSE:4689
3T JPY
4%
1%
3%
3%
US
Pinterest Inc
NYSE:PINS
21.2B USD
7%
6%
4%
11%
KR
Naver Corp
KRX:035420
24.3T KRW
7%
4%
6%
4%
AU
REA Group Ltd
ASX:REA
26.1B AUD
21%
12%
32%
18%
Country US
Market Cap 1.4T USD
ROE
35%
ROA
24%
ROCE
32%
ROIC
33%
Country US
Market Cap 2T USD
ROE
31%
ROA
22%
ROCE
31%
ROIC
32%
Country CN
Market Cap 3.6T HKD
ROE
19%
ROA
10%
ROCE
16%
ROIC
13%
Country US
Market Cap 301.8B USD
ROE
-3%
ROA
0%
ROCE
27%
ROIC
-9%
Country JP
Market Cap 36.1B EUR
ROE
4%
ROA
1%
ROCE
3%
ROIC
3%
Country CN
Market Cap 31B USD
ROE
8%
ROA
5%
ROCE
7%
ROIC
10%
Country CN
Market Cap 183B HKD
ROE
30%
ROA
14%
ROCE
24%
ROIC
39%
Country JP
Market Cap 3T JPY
ROE
4%
ROA
1%
ROCE
3%
ROIC
3%
Country US
Market Cap 21.2B USD
ROE
7%
ROA
6%
ROCE
4%
ROIC
11%
Country KR
Market Cap 24.3T KRW
ROE
7%
ROA
4%
ROCE
6%
ROIC
4%
Country AU
Market Cap 26.1B AUD
ROE
21%
ROA
12%
ROCE
32%
ROIC
18%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

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