Alphabet Inc Class C (GOOG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.07% | 56.36% | 55.13% | 56.94% | 53.58% |
| Operating profit margin | 32.21% | 27.59% | 26.61% | 30.55% | 22.59% |
| Pretax margin | 34.33% | 28.05% | 25.36% | 35.22% | 26.34% |
| Net profit margin | 28.69% | 24.15% | 21.32% | 29.51% | 22.06% |
Alphabet Inc Class C has shown an improvement in its profitability ratios over the years based on the provided data. The gross profit margin increased from 53.58% in December 31, 2020, to 58.07% in December 31, 2024, indicating the company's ability to efficiently manage its production costs and generate more revenue from its core activities.
Similarly, the operating profit margin has shown a significant improvement, rising from 22.59% in December 31, 2020, to 32.21% in December 31, 2024. This suggests that Alphabet Inc Class C has been effective in controlling its operating expenses and increasing profitability from its core operations.
The pretax margin also exhibits a positive trend, increasing from 26.34% in December 31, 2020, to 34.33% in December 31, 2024. This indicates the company's ability to generate more income before accounting for taxes relative to its total revenue.
Furthermore, the net profit margin, which reflects the company's bottom line profitability after all expenses have been deducted, has shown improvement from 22.06% in December 31, 2020, to 28.69% in December 31, 2024. This signifies an enhancement in Alphabet Inc Class C's ability to convert revenue into profit.
Overall, the increasing trend in gross profit margin, operating profit margin, pretax margin, and net profit margin for Alphabet Inc Class C highlights the company's effective cost management, operational efficiency, and profitability growth over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 24.96% | 20.95% | 20.49% | 21.91% | 12.90% |
| Return on assets (ROA) | 22.24% | 18.34% | 16.42% | 21.16% | 12.60% |
| Return on total capital | 33.45% | 29.14% | 26.94% | 34.50% | 20.38% |
| Return on equity (ROE) | 30.80% | 26.04% | 23.41% | 30.22% | 18.09% |
Alphabet Inc Class C has demonstrated consistent and improving profitability over the years based on various key ratios.
- Operating return on assets (Operating ROA) has shown a positive trend, increasing from 12.90% in December 2020 to 24.96% in December 2024. This indicates the company's ability to generate operating profits from its assets has significantly improved.
- Return on assets (ROA) also exhibits a similar positive trend, rising from 12.60% in December 2020 to 22.24% in December 2024. This suggests that Alphabet Inc has been effectively utilizing its assets to generate profits for shareholders.
- Return on total capital reflects a consistent growth pattern, increasing from 20.38% in December 2020 to 33.45% in December 2024. This ratio indicates the efficiency of the company in generating returns on both debt and equity investments.
- Return on equity (ROE) has shown a steady improvement, from 18.09% in December 2020 to 30.80% in December 2024. This indicates the company's ability to generate profits from the shareholders' equity investment.
Overall, the profitability ratios of Alphabet Inc Class C paint a favorable picture, showcasing the company's effective use of assets and capital to generate increasing returns for its stakeholders over the years.