Meta Platforms (META) — FY2024 Financials: Margins, Cash Flow, Balance Sheet

Income-statement trends (FY2021–FY2024)#

Meta Platforms, Inc. ([META]) closed FY2024 with $164.50B in revenue and $62.36B in net income, representing a year-over-year rise in top-line and an outsized expansion in the bottom line. Revenue grew by +21.94% versus FY2023 and net income accelerated by +59.49%, a pattern that points to meaningful operating leverage in the period. Those two numbers — the scale of revenue and the magnitude of profit growth — set the frame for the rest of the company’s 2024 financial story.

Across the four-year span the business shows a pronounced improvement in margins after the trough in 2022. FY2024 operating income was $69.38B (operating margin 42.18%), up from $46.75B (operating margin 34.66%) in 2023 and $28.94B (operating margin 24.83%) in 2022. Gross profitability has been consistently high (gross margin 81.67% in 2024) but the step-change in operating margin between 2023 and 2024 is the most significant signal: revenue leverage combined with moderated operating expense growth produced a material uplift in operating profit.

Digging into expense composition clarifies the drivers. Research & development remained large at $43.87B in 2024 — 26.67% of revenue — while selling, general and administrative expenses fell to $21.09B (12.82% of revenue). The divergence — rising R&D intensity but shrinking SG&A as a share of sales — indicates the company is reallocating incremental dollars into product and infrastructure while extracting efficiency from selling and administrative lines. The result: operating expenses (total) were $64.96B or 39.50% of revenue in 2024, down materially from 46.09% in 2023.

The table below summarizes the income-statement trend and the margin progression used for all subsequent calculations. All figures are fiscal-year totals and expressed in billions (B) where applicable; margins are two-decimal percentages computed from those line items.

The year-over-year moves tell a clear story: after a modest contraction in 2022, revenue accelerated in 2023 (+15.69%) and then again in 2024 (+21.94%), while net income recovered from a 2022 decline (-41.09% vs 2021) to post a large rebound of +68.53% in 2023 and +59.49% in 2024. Those arithmetic changes are derived directly from the line items above (for example, revenue growth 2024 = (164.50 - 134.90) / 134.90 = +21.94%).

This income-statement pattern reveals two facts rooted in the numbers: first, the business demonstrates strong operating leverage where rising revenue is converting disproportionately into operating profit; second, the company continues to invest heavily in R&D even as it tightens other operating expenses, which has the combined effect of protecting long-term product investment while improving near-term margins.

Cash-flow quality and capital allocation#

The cash-flow statement confirms that FY2024 earnings were high quality from an operating-cash perspective. Net cash provided by operating activities was $91.33B versus net income of $62.36B, meaning operating cash exceeded accounting profit by $28.97B. That difference reflects non-cash addbacks (notably depreciation and amortization of $15.50B) plus modest working-capital movements ($1.05B), and other timing items. The conversion of reported profit into cash was therefore robust: operating-cash-to-net-income = 91.33 / 62.36 = 146.42%.

Free cash flow (FCF) — defined here as operating cash less capital expenditures — was $54.07B in FY2024. In margin terms that is 54.07 / 164.50 = 32.87% free-cash-flow margin, and FCF-to-net-income was 54.07 / 62.36 = 86.67%. Those metrics indicate the company is not only profitable on paper but is also generating substantial distributable cash after funding heavy investments in the business.

But the cash-flow profile also shows a notable rebalancing of capital allocation. Capital expenditures rose to $37.26B in 2024 (capex/revenue 22.65%), up +36.66% versus 2023 capex of $27.27B. At the same time, shareholder returns were significant: common stock repurchases totaled $30.13B and dividends paid reached $5.07B in 2024 (the dataset shows dividends beginning in 2024 periods). Net cash used in financing activities was -$40.78B. The company therefore financed heavy capex and large buybacks/dividends from operating cash while still increasing cash at period end slightly.

The cash-flow table below captures those flows and the computed conversion metrics used in this analysis.

From a quality standpoint the three most important signals are: operating cash comfortably exceeded net income in 2024; free cash flow converted a high share of accounting profit to cash; and management used the cash to fund both aggressive capex and resumed sizable shareholder returns. Those numbers — high FCF margin alongside large capex and buybacks — define the 2024 cash-flow trade-off.

One additional observation the raw numbers reveal: despite heavy capital spending, the company increased its cash and short-term investments balance (see balance sheet section) and closed the year with slightly higher cash at period end, showing operational resiliency even while the company accelerates investment.

Balance-sheet changes and capitalization#

On the balance sheet FY2024 shows material expansion: total assets rose to $276.05B from $229.62B at the end of FY2023, an increase of +20.23%. The most visible contributor to asset growth was property, plant and equipment (PPE) — net PPE increased to $136.27B from $109.88B, a +24.02% jump consistent with higher capex. Cash and short-term investments also increased to $77.81B (from $65.40B), while total current assets rose to $100.05B.

Liabilities expanded as well but capital structure remained conservative in absolute leverage terms. Total liabilities increased to $93.42B (from $76.45B) while total stockholders’ equity rose to $182.64B. Total debt increased to $49.06B (from $37.23B), pushing reported net debt from a net-cash position of -$4.63B at FY2023 to a modest net debt of +$5.17B at FY2024 — a swing of +$9.80B.

Several ratios derived from the FY2024 balance-sheet line items provide context on liquidity and leverage. Using year-end balances:

• Current ratio = total current assets / total current liabilities = 100.05 / 33.60 = 2.98x.
• Quick ratio (cash + short-term investments / current liabilities) = 77.81 / 33.60 = 2.32x.
• Debt-to-equity = total debt / total stockholders’ equity = 49.06 / 182.64 = 0.27x (or 26.86%).
• Net debt / EBITDA = 5.17 / 86.88 = 0.06x, indicating very low leverage on an EBITDA basis.

Those computations are reproduced in the balance-sheet snapshot table below and are based directly on the FY2024 year-end figures.

What the numbers reveal: Meta materially increased capital intensity (capex and PPE), funded from robust operating cash, while augmenting shareholder distributions. The modest shift from net cash to net debt reflects intentional financing choices (debt increase plus large buybacks and dividends) rather than a deterioration in operational liquidity. The company remains well-capitalized on standard metrics — current and quick ratios are comfortably above 2x — yet the shift in net-debt posture is a new read-across for future flexibility because it removes certain optionality that existed when the company was a net-cash firm.

Key computed ratios and methodology (FY2024)#

This section lists the key ratios calculated from the raw line items and documents the formula and assumptions used. When multiple interpretations are possible (for example, which cash measure to deduct from invested capital), I show the chosen approach and note sensitivity.

• Effective tax rate (FY2024) = (Income before tax - Net income) / Income before tax = (70.66 - 62.36) / 70.66 = 11.75%.
• Operating margin = Operating income / Revenue = 69.38 / 164.50 = 42.18%.
• Net margin = Net income / Revenue = 62.36 / 164.50 = 37.91%.
• Free-cash-flow margin = FCF / Revenue = 54.07 / 164.50 = 32.87%.
• Capex intensity = Capex / Revenue = 37.26 / 164.50 = 22.65%.
• CFO-to-net-income = Net cash from operations / Net income = 91.33 / 62.36 = 146.42%.
• FCF-to-net-income = Free cash flow / Net income = 54.07 / 62.36 = 86.67%.
• Return on equity (ROE) = Net income / Average shareholders' equity = 62.36 / ((182.64 + 153.17) / 2) = 37.16%.
• Return on assets (ROA) = Net income / Average total assets = 62.36 / ((276.05 + 229.62) / 2) = 24.67%.

ROIC calculation and sensitivity: ROIC (common definition used here) = NOPAT / Average invested capital, where NOPAT = Operating income * (1 - effective tax rate). Using the FY2024 effective tax rate of 11.75%, NOPAT = 69.38 * (1 - 0.1175) = $61.22B. Invested capital is calculated as (total debt + shareholders' equity - cash), and averaged across year-end balances.

• Invested capital (end-FY2024) = 49.06 + 182.64 - 43.89 = $187.81B.
• Invested capital (end-FY2023) = 37.23 + 153.17 - 41.86 = $148.54B.
• Average invested capital = (187.81 + 148.54) / 2 = $168.17B.
• ROIC = 61.22 / 168.17 = 36.40%.

Note on methodology: some public datasets subtract cash + short-term investments from invested capital; doing so here would lower invested capital and raise ROIC (sensitivity noted in text). The choice above uses cash & cash equivalents only (as reported), which is conservative relative to subtracting the full cash + short-term investment balance. The dataset also included several TTM ratio estimates; where those conflict with the FY-end calculations above I prioritize the FY2024 line items for trend analysis and disclose the divergence below.

Discrepancies called out: the provided TTM metrics list a current ratio of 1.97x and a net-debt/EBITDA of 0.38x, while the FY2024 year-end calculations here produce current ratio 2.98x and net-debt / EBITDA 0.06x. The difference arises because the TTM figures appear to be constructed from trailing-12-month operating or balance aggregates that may use different definitions (for example, excluding certain short-term investments or averaging items differently). For clarity and traceability I rely on the explicit FY2024 line items in the raw financials for the ratios above and present the TTM values as an alternate view.

What the numbers reveal (analysis, not narrative)#

The arithmetic in the income statement, cash flow, and balance sheet points to a company that, in FY2024, generated materially higher margins and cash while simultaneously scaling capital investment and shareholder returns. Those three forces are visible in the numbers: a 42.18% operating margin and 37.91% net margin (FY2024), $54.07B of FCF (32.87% of revenue), and $37.26B of capex alongside $30.13B of share repurchases and $5.07B of dividends.

The fiscal picture shows disciplined operating-cost control (SG&A fell as a share of revenue) combined with sustained R&D intensity (R&D at 26.67% of revenue), which is consistent with a strategy of investing in product and infrastructure while harvesting efficiency elsewhere. The cash statement confirms the company can fund those investments and distributions from operating cash without running down short-term liquidity: cash & short-term investments rose year over year even as net debt moved from net cash to a small net-debt position.

Risks exposed by the numbers are concrete rather than hypothetical: capex intensity has moved sharply higher (capex/revenue 22.65%), which increases fixed-cost commitments and concentrates value into long-lived assets (PPE grew +24.02%). Management’s resumed buybacks and the introduction of dividends materially changed the capital-return profile and produced a move to net debt of $5.17B. If operating cash flow were to slow materially, those financing choices would tighten flexibility more than in the prior net-cash posture.

What This Means For Investors (featured summary)#

Featured answer (40–60 words): FY2024 shows $164.50B revenue (+21.94%) and $62.36B net income (+59.49%) with $54.07B in free cash flow (32.87% margin). Operating leverage produced wide margins, but capex surged to $37.26B and net debt rose to $5.17B after substantial buybacks and dividends.

Longer-form context without recommendation: the financials imply a high-quality cash business that is plowing significant resources into long-lived infrastructure while returning capital to shareholders. That trade-off — high organic cash generation funding both growth investment and large returns — is transparent in the numbers, and it shifts the investor focus from headline growth to the sustainability of operating cash and the trajectory of capital intensity.

Key takeaways and concluding observations#

The raw financial data anchor four central conclusions. First, Meta’s FY2024 performance reflects strong operating leverage: revenue growth of +21.94% translated into a disproportionate rise in operating profit and net income (+59.49%), producing high operating and net margins. Second, cash generation quality is robust: operating cash was $91.33B, FCF $54.07B, and FCF conversion of net income was 86.67%, showing sizeable real cash left after capex. Third, the company materially stepped up capital spending (capex $37.26B) and resumed large distributions (repurchases $30.13B, dividends $5.07B), which moved the balance sheet from net cash to a modest net-debt position ($5.17B). Fourth, computed returns are very strong — ROE 37.16%, ROA 24.67%, and ROIC (conservative cash subtraction) 36.40% — but those metrics are sensitive to the cash definition used in invested-capital calculations.

All numerical statements above are computed from the supplied FY2021–FY2024 income statements, balance sheets and cash-flow statements. Where alternate TTM metrics were presented in the dataset, I have called out material divergences and used the explicit FY-end line items for trend clarity and traceability. The numbers show a company converting scale into exceptional margins and cash, funding an aggressive investment program while reintroducing capital returns — a clear, measurable shift in the financial footprint that stakeholders should monitor for durability over subsequent periods.

(End of report.)