Facebook Total Liabilities vs Gross Margin Analysis

Total Liabilities vs Gross Margin

Total Liabilities

Deferred Income Tax is recorded on Facebook Inc balance sheet and a result of income already earned and recognized for accounting, but not tax, purposes. Also, differences between tax laws and accounting methods can result in a temporary difference in the amount of income tax payable by a company. This difference is recorded on Facebook books as deferred income tax. Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Principal components are Total Debt, Deferred Revenue, Trade and Non Trade Payables,Deposit Liabilities, and tax liabilities.

Gross Margin

Gross Margin measures the ratio between a company's Gross Profit and Revenues.

Accounts Relationship

Total Liabilities vs Gross Margin

Significance: Almost Identical Trend

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Facebook Inc Total Liabilities account and Gross Margin

Correlation Coefficient

0.92
Relationship DirectionPositive 
Relationship StrengthVery Strong