Frequent question: Why does Facebook have low debt?

Why Facebook do not have debt?

Generally, large-cap stocks are considered financially healthy if its ratio is below 40%. The good news for investors is that Facebook has no debt. … Investors’ risk associated with debt is virtually non-existent with FB, and the company has plenty of headroom and ability to raise debt should it need to in the future.

Does Facebook have any debt?

Debt Coverage: FB has no debt, therefore it does not need to be covered by operating cash flow.

What is Facebook’s total debt?

Facebook’s total debt for fiscal years ending December 2016 to 2020 averaged $4.4 billion. Facebook’s operated at median total debt of $500 million from fiscal years ending December 2016 to 2020. Looking back at the last five years, Facebook’s total debt peaked in June 2021 at $12.563 billion.

Is Facebook debt Free?

Social-media giant Facebook doesn’t have any long-term debt on its books. The business has current assets of more than $77 billion that could easily cover all of its liabilities, which total $30 billion.

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Is FB a buy or sell?

Facebook has received a consensus rating of Buy. The company’s average rating score is 2.85, and is based on 32 buy ratings, 5 hold ratings, and 1 sell rating.

Why does Facebook have a lot of cash?

As competition and challenges in advertising increase, Facebook is investing to defend its turf and diversify its revenue sources. The company is investing in its platforms’ safety and security to attract more spending from brand safety-conscious companies such as Procter & Gamble (PG).

Is Facebook stock still a good buy?

But there’s good reason to believe shares are still worth buying at these levels. … Finally, Facebook stock’s valuation is still very conservative. The company trades at 27 times earnings even though the consensus analyst forecast calls for earnings per share to increase at about 29% annually over the next five years.

Is Facebook overvalued?

Even if we ignore the fact that Facebook is the market leader and the dominant player in the social media industry, its current valuation confirms that the company is fairly valued in comparison to its peers. … From a relative valuation perspective, Facebook is most certainly not overvalued.

How much is Google in debt?

Compare GOOG With Other Stocks

Alphabet Annual Long Term Debt (Millions of US $)
2020 $13,932
2019 $4,554
2018 $4,012
2017 $3,969

What are Facebook’s assets?

Assets

Item Item 2016 2019
Cash & Short Term Investments Growth Cash & Short Term Investments Growth 33.41%
Cash Only Cash Only 8.9B 19.09B
Short-Term Investments Short-Term Investments 20.55B 35.78B
Cash & ST Investments / Total Assets Cash & ST Investments / Total Assets 45.33% 41.13%
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How much cash does Facebook have on their balance sheet?

Assets

Fiscal year is January-December. All values USD Millions. 2020 2019
Cash & Short Term Investments 62,195 54,863
Cash Only 17,817 19,087
Short-Term Investments 44,378 35,776
Cash & Short Term Investments Growth 13.36% 33.41%

How much is Apple in debt?

According to the Apple’s most recent financial statement as reported on January 28, 2021, total debt is at $112.04 billion, with $99.28 billion in long-term debt and $12.76 billion in current debt. Adjusting for $36.01 billion in cash-equivalents, the company has a net debt of $76.03 billion.

Why is Netflix in debt?

In less than a decade, the streaming giant borrowed over $16 billion to feed its titanic appetite for content. The reason: It didn’t make enough money to cover both its entertainment productions and its business costs, like payroll and rent and marketing.

How much cash does Facebook have 2020?

Cash and cash equivalents and marketable securities – Cash and cash equivalents and marketable securities were $61.95 billion as of December 31, 2020.

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