Facebook Return On Equity vs. Profit Margin

FB -- USA Stock  

USD 162.32  1.87  1.17%

The Drivers Module shows relationships between Facebook's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Facebook over time as well as its relative position and ranking within its peers. Additionally see Investing Opportunities

Facebook Profit Margin vs. Return On Equity Fundamental Analysis

Facebook is rated below average in return on equity category among related companies. It is rated below average in profit margin category among related companies fabricating about  1.50  of Profit Margin per Return On Equity.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
Facebook 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
=
26.14 %
For most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Facebook 
Profit Margin 
 = 
Net Income 
Revenue 
X
100 
=
39.32 %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.

Facebook Profit Margin Comparison

  Profit Margin 
      Facebook Comparables 
Facebook is rated # 5 in profit margin category among related companies.
Facebook is rated # 5 in return on equity category among related companies.
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