Alphabet Inc Class C (GOOG)
Pretax 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 85,717,000 | 78,452,000 | 73,488,000 | 70,599,000 | 71,328,000 | 78,583,000 | 85,414,000 | 88,385,000 | 90,734,000 | 85,021,000 | 75,316,000 | 61,608,000 | 48,082,000 | 40,097,000 | 35,366,000 | 39,236,000 | 39,625,000 | 38,993,000 | 40,448,000 | 32,516,000 |
| 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 |
| Pretax margin | 28.06% | 26.62% | 25.54% | 24.93% | 25.34% | 27.83% | 30.74% | 32.73% | 35.27% | 35.69% | 34.32% | 31.46% | 26.46% | 23.43% | 21.37% | 23.60% | 24.54% | 25.13% | 27.26% | 22.90% |
December 31, 2023 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $85,717,000K ÷ $305,445,000K
= 28.06%
The pretax margin of Alphabet Inc, a key profitability ratio that indicates the company's efficiency in generating profits before taxes relative to its total revenues, has displayed some fluctuation over the past several quarters.
In Q4 2023, the pretax margin stood at 27.89%, showing a slight increase compared to the previous quarter. This may suggest that Alphabet Inc was able to effectively manage its expenses and generate higher profits relative to its revenue during this period.
Looking back at the rest of 2023, we observe a gradual increase in the pretax margin from Q3 (26.40%) to Q1 (24.81%), showing a positive trend in the company's profitability performance.
Comparing the Q4 2023 pretax margin with the same period in the previous year, we see a slight improvement from 25.22% to 27.89%, indicating potential operational efficiencies implemented by Alphabet Inc.
It is important to note the significant decrease in pretax margin observed from Q2 2022 (30.71%) to Q1 2022 (32.69%). This decline could be a result of various factors such as increased operating expenses or lower revenue generation during that quarter.
Overall, the pretax margin of Alphabet Inc has demonstrated resilience and improvement in recent quarters, with Q4 2023 showing a particularly positive performance. Monitoring this ratio over time can provide insights into the company's ability to effectively manage costs and generate profits before taxes.
Peer comparison
Dec 31, 2023