Facebook, Inc. Cash Flow Ratios: (Industry: Internet Information Provider)
Year Ending |
|
2015 |
2014 |
2013 |
|
|
|
|
|
|
Operating Cash Flow/Current Liabilities |
|
|
|
|
|
Operating Cash Flow |
|
$8,599,000 |
$5,457,000 |
$4,222,000 |
|
Current Liabilities |
|
1,925,000 |
1,424,000 |
1,100,000 |
|
Operating Cash Flow to Current Liabilities |
|
4.47 |
3.83 |
3.84 |
The operating cash flow to current liabilities measures the firm’s liquidity and ability to pay short-term debts. The higher the ratio, the better. Facebook slightly declined from 2013 to 2014, and increased in 2015. In 2015 Facebook was able to pay its current liabilities 4.47 times.
Year Ending |
|
2015 |
2014 |
2013 |
|
|
|
|
|
|
Operating Cash Flow/Total Debt |
|
|
|
|
|
Operating Cash Flow |
|
$8,599,000 |
$5,457,000 |
$4,222,000 |
|
Total Debt |
|
5,189,000 |
3,870,000 |
2,425,000 |
|
Operating Cash Flow to Total Debt |
|
1.66 |
1.41 |
1.74 |
The operating cash flow to debt ratio measures the firm’s ability to cover all debt with the cash flow from the specified year. The higher the ratio, the better. Facebook declined from 2013 to 2014, and increased from 2014 to 2015, but not to where they stood in 2013. The cash inflow is significant in relation to total debt. In 2015 Facebook was able to cover it’s debt 1.66 times, or 166%.
Year Ending |
|
2015 |
2014 |
2013 |
|
|
|
|
|
|
Operating Cash Flow per Share |
|
|
|
|
|
Operating Cash Flow |
|
$8,599,000,000 |
|
|
|
Less: Redeemable Preferred Dividends |
|
– |
|
|
|
Operating Cash Flow after Preferred Dividends |
|
8,599,000,000 |
|
|
|
Diluted Weighted Average Common Shares Outstanding |
2,310,000,000 |
|
|
|
Operating Cash Flow per Share |
|
$3.72 |
|
|
The operating cash flow per share is the available funds er share outstanding. It measures the firm’s ability to make expenditure decisions and pay dividends. In 2015, the cash flow per share was $3.72 per share. Differences in this number can vary from year to year based on purchases, such as land and utilities. It is a useful ratio if compared over longer periods. Facebook has one of the highest in the industry of internet information providers, second to Google, Inc.
Year Ending |
|
2015 |
2014 |
2013 |
|
|
|
|
|
|
Operating Cash Flow/Cash Dividends |
|
|
|
|
|
Operating Cash Flow |
|
$8,599,000 |
$5,457,000 |
$4,222,000 |
|
Cash Dividends |
|
– |
– |
– |
|
Operating Cash Flow to Cash Dividends |
|
– |
– |
– |
The operating cash flow to cash dividends measures the firm’s ability to cover cash dividends with the specified yearly cash flow. Facebook currently does not pay dividends so they are in no danger of not being able to pay them.