Scenario 35: Financial Statement Analysis - Facebook, Inc.

Facebook, Inc. has reported the following financial data for the fiscal year ended December 31, 2023:

• Total Assets: $174,632 million
• Total Liabilities: $66,920 million
• Net Income: $47,950 million
• Total Revenue: $118,894 million
• Total Expenses: $70,944 million
• Average Shareholders' Equity: $107,712 million

Calculate the following financial ratios for Facebook, Inc.:

a) Return on Assets (ROA) b) Return on Equity (ROE) c) Debt-to-Equity Ratio d) Gross Profit Margin e) Net Profit Margin

Interpret each ratio and discuss the financial performance of Facebook, Inc. based on these ratios.