Facebook Total Liabilities vs Return on Average Assets Analysis

Total Liabilities vs Return on Average Assets

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.

Return on Average Assets

Return on assets measures how profitable a company is Net Income Common Stock relative to its total assets Average Assets.

Accounts Relationship

Total Liabilities vs Return on Average Assets

Significance: Weak Contrarian Relationship

Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Facebook Inc Total Liabilities account and Return on Average Assets

Correlation Coefficient

-0.15
Relationship DirectionNegative 
Relationship StrengthInsignificant