Question
Facebook, Inc. (Meta Platforms, Inc.) provided an income statement for the year ended December 31, 2023, showing revenue of $148,180 million and cost of revenue
Facebook, Inc. (Meta Platforms, Inc.) provided an income statement for the year ended December 31, 2023, showing revenue of $148,180 million and cost of revenue of $23,318 million. The company reported a gross profit of $124,862 million and operating expenses of $76,691 million, resulting in an operating income of $48,171 million. After accounting for interest expenses of $610 million and income taxes of $11,690 million, Facebook, Inc. reported a net income of $35,871 million.
a. Calculate Facebook, Inc.'s gross profit margin. b. Determine the operating income margin for Facebook, Inc. c. Discuss the impact of Facebook, Inc.'s interest expense on its profitability. d. Analyze the effective tax rate of Facebook, Inc. and its implications for shareholders.
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