Balance Sheet

a) Using the 2012 Annual Report, which reflects the fiscal year ended December 31, 2012, Facebook lists short-term liabilities on its balance sheet of $1.052 billion, split between several categories. The largest of these is the accrued expenses, followed by the capital lease obligations. The long-term debt on the company's balance sheet is $1.50 billion with the total long-term liabilities being $2.296 billion.

b) The market capitalization of Facebook is $107 billion, according to Yahoo Finance.

The debt ratio of the company, using the book value of the company's equity, is 3348 / 15103 = 22.1%. The debt-to-equity ratio is 3348 / 11755 = 28.6%.

For short-term liabilities only, the STL Debt ratio is 1052 / 15103 = 6.9% and the STL/Equity ratio is 1052 / 11755 = 8.9%. The LTD debt ratio is 2296 / 15103 = 15.2% and the LTL/Equity ratio is 2295 / 11755 =...
[ View Full Essay]