Alphabet Inc Class C (GOOG)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 84,293,000 | 74,842,000 | 78,714,000 | 41,224,000 | 34,231,000 |
| Revenue | US$ in thousands | 305,559,000 | 281,279,000 | 257,637,000 | 182,527,000 | 161,857,000 |
| Operating profit margin | 27.59% | 26.61% | 30.55% | 22.59% | 21.15% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $84,293,000K ÷ $305,559,000K
= 27.59%
Alphabet Inc's operating profit margin has shown a positive trend over the past five years, indicating a strong ability to generate profits from its core operations. The operating profit margin increased from 22.20% in 2019 to 30.55% in 2021, reflecting improved operational efficiency and cost management.
However, there was a slight dip in the operating profit margin in 2022 to 26.33%, which could be attributed to various factors such as increased operating expenses or changes in revenue mix. Nevertheless, the company was able to bounce back in 2023 with an operating profit margin of 27.23%.
Overall, Alphabet Inc's operating profit margin demonstrates a consistent ability to generate profits relative to its revenue, highlighting the company's solid operational performance and financial stability.
Peer comparison
Dec 31, 2023