Alphabet Inc Class C (GOOG)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 112,390,000 | 84,293,000 | 74,842,000 | 78,714,000 | 41,224,000 |
| Total assets | US$ in thousands | 450,256,000 | 402,392,000 | 365,264,000 | 359,268,000 | 319,616,000 |
| Operating ROA | 24.96% | 20.95% | 20.49% | 21.91% | 12.90% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $112,390,000K ÷ $450,256,000K
= 24.96%
Based on the provided data, Alphabet Inc Class C's operating return on assets (operating ROA) has shown a positive trend over the past five years, increasing from 12.90% as of December 31, 2020, to 24.96% as of December 31, 2024. This improvement indicates that the company has been more efficient in generating operating profits relative to its total assets.
The significant increase in operating ROA from 2020 to 2024 suggests that Alphabet Inc Class C has been enhancing its operational performance and/or effectively managing its assets to generate higher returns. A rising operating ROA generally reflects that the company is utilizing its assets efficiently to drive profitability.
Alphabet Inc Class C's operating ROA reaching 21.91% in 2021, 20.49% in 2022, and 20.95% in 2023 indicates consistency in its ability to generate operating income relative to its asset base.
Overall, Alphabet Inc Class C's improving trend in operating ROA signifies operational effectiveness and efficient asset utilization, which can be considered a positive indicator of the company's financial health and management performance.
Peer comparison
Dec 31, 2024