Facebook, 2019 -2018

All the formulas used are changed according to the company data.

Analysis of financial condition and results of operations (2019) (In billions)

1. Total cost and expensive = Cost of Revenue + RandD + marketing and sales +
General and administrative
46,711 = 12,770 + 13,600 + 9,876 + 10,465
If to compare those with the previous year, 2018, when total cost and expensive
= 30,925, so 46,711/30,925 x 100 = 151% of the previous year means the
increase in 2019 is 51 %.
2. Income from operations = Revenue - Total cost and expensive
23,986 = 70,697 - 46,711
If to compare those with the previous year, 2018, when Income from operations
= 24,913, so 23,986 /24,913 x 100 = 96% of the previous year means the
decrease in 2019 is 4 %.
3. Income before income taxes = Income from operations + Interest and other
Income
24,812 = 23,986 + 826
If to compare those with the previous year, 2018, when Income before income
taxes = 25,361, so 24,812 /25,361 x 100 = 98% of the previous year means the
decrease in 2019 is 2 %.
4. Net Income = Income before income taxes – Income Taxes
18,485 = 24,812 – 6,327
If to compare those with the previous year, 2018, when Net Income = 22,112,
so 18,485 /22,112 x 100 = 84% of the previous year means the decrease in 2019
is 16 %.
5. Total current liabilities = Account payable + Partners payable + Accrued
expenditures and other + Deferred revenue and deposits
7, 017 = 820+541+5,509+147
If to compare those with the previous year, 2018, when Total current liabilities
= 3,76, so 7,017 /3,76 x 100 = 187% of the previous year means the increase in
2019 is 87 %!
6. Total liabilities = Total current liabilities + Other liabilities
13,207 = 7, 017 + 6,190
If to compare those with the previous year, 2018, when Total liabilities =
10,177, so 13,207 /10,177 x 100 = 130% of the previous year means the
increase in 2019 is 30 %.
7. Retained earnings = Additional paid-in capital – Other comprehensive lose
41,981 =42,906 – 720
If to compare those with the previous year, 2018, when Retained earnings
= 33,990, so 41,981/33,990 x 100 = 124% of the previous year means the
increase in 2019 is 24 %.
8. Total stakeholders’ equity = Additional paid-in capital + Retained earnings
84,127= 42,906 + 41,981
If to compare those with the previous year, 2018, when Total stakeholders’
equity
= 74,35, so 84,127/74,35 x 100 = 113% of the previous year means the increase
in 2019 is 13 %.
9. Total liabilities and stakeholders’ equity = Total stakeholders’ equity + Total
liabilities
97,334= 84,127+13,207
If to compare those with the previous year, 2018, when Total stakeholders’
equity
= 84,524, so 97,224/84,524 x 100 = 115% of the previous year means the
increase in 2019 is 15 %.

Category 2019(b$) 2018(b$) Change in %

Total cost and 46,711 30,925 + 51%
expensive
Income from 23,986 24,913 -4%
operations
Income before 24,812 25,361 -2%
income taxes
Net Income 18, 485 22,112 -16%
Total current 7,017 3,76 +87%
liabilities
Total liabilities 13,207 10,177 +30%
Retained earnings 41,981 33,990 +24%
Total 84,127 74,35 +13%
stakeholders’
equity
Total liabilities
and stakeholders’ 97,334 84,524 +15%
equity

Conclusion:
Comparing all the above data, we can confidently say that despite the well-
known scandal of 2018, in 2019 most of them grew on average from 15% to
80%! It should be noted that despite the decrease in some important data, the
company was able to increase the overall increase in stock prices, which fully
characterizes their market maturity.
Facebook's Advertising Revenues Have Been Steadily Growing at a Record $
16.91 Billion The number of scandals that shocked the FB for the year was also
a record, which surprisingly does not affect media budgets.
Its return on shares is relatively satisfactory, since it is carried out
independently - without resorting to leverage. The same applies to the
profitability of invested capital, and this allows you to measure the
effectiveness of the company.

References:
https://www.investing.com/equities/facebook-inc-financial-summary
Tyshchenko Anastasiia 2162