Facebook Operating Margin vs. Current Ratio

Facebook Inc -- USA Stock  

USD 179.58  0.01  0.0056%

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Facebook Inc Current Ratio vs. Operating Margin Fundamental Analysis

Facebook Inc is rated below average in operating margin category among related companies. It is rated below average in current ratio category among related companies fabricating about  0.26  of Current Ratio per Operating Margin. The ratio of Operating Margin to Current Ratio for Facebook Inc is roughly  3.79 
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Facebook 
Operating Margin 
 = 
Operating Income 
Revenue 
X
100 
=
46.66 %
A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. It measures whether or not a company has enough cash or liquid assets to pay its current liability over the next fiscal year. The ratio is regarded as a test of liquidity for a company.
Facebook 
Current Ratio 
 = 
Current Asset 
Current Liabilities 
=
12.31 times
Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. However, investors may prefer a lower current ratio since they are more concerned about growing the business using assets of the company. Acceptable current ratios may vary from one sector to another, but generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e. Current Ration of 2 to 1).

Comparison

Current Ratio Comparison
  Current Ratio 
      Facebook Comparables 
Facebook is rated below average in current ratio category among related companies.
  Operating Margin 
      Facebook Comparables 
Facebook is rated below average in operating margin category among related companies.
Facebook, Inc. operates as a mobile application and Website that enables people to connect, share, discover, and communicate each other on mobile devices and personal computers worldwide. more
NameFacebook Inc
Analyst Consensus
Piotroski F Score
Macroaxis Advice
InstrumentUSA Stock Stocks Directory
RegionNorth America
ExchangeNASDAQ
CIK Number01326801.0
ISINUS30303M1027
CUSIP30303M102
CurrencyUSD - US Dollar
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