Alphabet Inc Class C (GOOG)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 402,392,000 | 365,264,000 | 359,268,000 | 319,616,000 | 275,909,000 |
| Operating ROA | 20.95% | 20.49% | 21.91% | 12.90% | 12.41% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $84,293,000K ÷ $402,392,000K
= 20.95%
Alphabet Inc's operating return on assets (operating ROA) has shown favorable performance in recent years. The ratio has exhibited an increasing trend from 2019 to 2021, indicating the company's ability to generate more operating income from its assets. The highest operating ROA was observed in 2021 at 21.91%, reflecting efficient asset utilization to generate operating income. Although there was a slight dip in 2022, the operating ROA remained relatively high at 20.39%. The most recent data for 2023 shows a further improvement, with the operating ROA reaching 20.80%. This trend suggests that Alphabet Inc has been effectively managing its assets to generate operating income, which is a positive indicator of operational efficiency and profitability.
Peer comparison
Dec 31, 2023