Key Insights on Facebook’s Financial Performance
⚡Total Revenue grew by 294% from 2015 to 2019
⚡ Avg of 49.1% and 32.51% of total Expenses was spent on R&D and Sales & Marketing respectively from 2015 to 2019.
⚡ Facebook has maintained an avg of 6.46% ratio on General and Administrative expenses to Revenue for 4 years but had a sharp increase of 14.80% in 2019.
⚡Net Income grew by 401.22% from 2015 to 2019. But declined by 16.40% YoY in 2019 due to an increase of 203.25% YoY in General & Administrative expenses.
⚡ Liquidity: Facebook is highly liquid and has maintained an avg of 42% of total Assets in highly Liquid Assets.
⚡ Return on Equity: Facebook increased the returns to stockholders from 8.34% in 2015 to 18.29% in 2019.
⚡Leverage: Facebook is not geared. It has zero debt.
Source : Facebook Annual Report