Alphabet Inc Class C (GOOG)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 402,392,000 | 396,711,000 | 383,044,000 | 369,491,000 | 365,264,000 | 358,255,000 | 355,185,000 | 357,096,000 | 359,268,000 | 347,403,000 | 335,387,000 | 327,095,000 | 319,616,000 | 299,243,000 | 278,492,000 | 273,403,000 | 275,909,000 | 263,044,000 | 257,101,000 | 245,349,000 |
| Operating ROA | 20.95% | 19.85% | 19.46% | 19.53% | 20.49% | 21.93% | 23.22% | 23.07% | 21.91% | 20.86% | 18.68% | 15.19% | 12.90% | 11.64% | 11.78% | 13.02% | 12.41% | 12.62% | 12.69% | 10.80% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $84,293,000K ÷ $402,392,000K
= 20.95%
Operating return on assets (operating ROA) is a key financial ratio that measures a company's ability to generate operating profits from its assets. Alphabet Inc's operating ROA has exhibited fluctuations over the past eight quarters. Starting from Q1 2022 and peaking at 23.22% in Q3 2022, the ratio showed a downward trend throughout 2023, reaching its lowest point at 19.33% in Q2 2023 before slightly recovering in Q4 2023 to 20.80%.
The decreasing trend in operating ROA could indicate challenges faced by Alphabet Inc in efficiently utilizing its assets to generate operating income. Investors and analysts may scrutinize the company's operational efficiency and asset management strategies to understand the reasons behind the declining trend in operating ROA. Further analysis of the company's financial performance and operational activities may provide insights into potential areas for improvement to enhance profitability and efficiency.
Peer comparison
Dec 31, 2023