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Facebook Marketable Securities

Questions › Category: Financials Quadrant › Facebook Marketable Securities
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Gloria asked 2 years ago

Hi Victor/Rusmin
I’m looking at Facebook’s 2012 statement and noted that under current assets, they have CCE and marketable securities (consisting of U.S. government and U.S. government agency securities).  May I check if marketable securities should be added into cash when doing the analysis sheet?
Thanks!

Gloria replied 2 years ago

Hi Victor/Rusmin

Further to the question above, I have two more queries:
-For trade payables, should we include platform partners payables?
-For number of shares, do we include both Class A and Class B shares?

Thanks very much!

1 Answers
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Victor Chng answered 2 years ago

Hi Gloria,
 

  1. You can consider the marketable securities as cash since it can be readily liquidated.
  2. Usually investors will just use trade payables but if you want to be conservative you can add the partners payables.
  3. The net income in FB financial statement is the combined of Class A & B. So when computing, you have to add both the class A & B shares together.
Gloria replied 2 years ago

Thanks very much!

Victor Chng replied 2 years ago

welcome :)