Alphabet Inc Class C (GOOG)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 56.35% | 55.51% | 55.16% | 55.07% | 55.17% | 56.14% | 56.70% | 56.88% | 56.88% | 56.33% | 55.56% | 54.12% | 53.37% | 53.63% | 54.20% | 55.16% | 55.66% | 55.66% | 55.86% | 56.28% |
| 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% |
| 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% |
| Net profit margin | 24.16% | 22.65% | 21.18% | 20.69% | 21.30% | 23.72% | 25.92% | 27.61% | 29.55% | 29.64% | 28.68% | 26.22% | 22.16% | 20.87% | 19.05% | 20.76% | 21.27% | 21.02% | 23.41% | 19.71% |
Alphabet Inc's profitability ratios show the company's ability to generate profits from its operations. The gross profit margin, which indicates the percentage of revenue that exceeds the cost of goods sold, has been relatively stable around 55-56% over the quarters, reflecting efficient cost management.
The operating profit margin, which measures the percentage of revenue remaining after deducting operating expenses, has shown a slight decrease from Q1 2022 to Q4 2023, indicating that the company's profitability from core business activities has decreased slightly.
Similarly, the pretax margin, representing the portion of revenue that remains after accounting for operating and non-operating expenses but before taxes, has shown a decreasing trend from Q1 2022 to Q4 2023. This may suggest increasing non-operating expenses or reduced profitability from operations.
The net profit margin, which shows the percentage of revenue that translates into net income after all expenses are deducted, has also exhibited a downward trend from Q1 2022 to Q4 2023. This indicates that Alphabet Inc's bottom-line profitability has been decreasing over the quarters, possibly due to rising expenses or other factors affecting net income.
Overall, while Alphabet Inc maintains healthy profitability margins compared to industry peers, the decreasing trend in operating, pretax, and net profit margins signals a need for the company to closely monitor and manage expenses to sustain or improve its profitability in the future.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 18.34% | 16.82% | 15.91% | 15.86% | 16.42% | 18.70% | 20.28% | 20.87% | 21.16% | 20.33% | 18.76% | 15.70% | 12.60% | 11.93% | 11.32% | 12.63% | 12.45% | 12.40% | 13.51% | 11.41% |
| Return on total capital | 29.29% | 27.86% | 26.62% | 26.17% | 26.94% | 29.99% | 32.27% | 33.44% | 34.50% | 33.21% | 30.23% | 25.43% | 20.38% | 17.72% | 16.85% | 18.94% | 19.34% | 19.66% | 20.68% | 17.41% |
| Return on equity (ROE) | 26.04% | 24.43% | 22.82% | 22.46% | 23.41% | 26.41% | 28.20% | 29.35% | 30.22% | 28.87% | 26.49% | 22.33% | 18.09% | 16.77% | 15.21% | 16.95% | 17.05% | 16.73% | 18.08% | 15.26% |
Alphabet Inc's profitability ratios exhibit a consistent performance over the past eight quarters. The Operating return on assets (Operating ROA) has remained relatively stable, ranging between 19.33% to 23.22%. This indicates that the company has been efficient in generating operating income relative to its total assets during this period.
Similarly, the Return on assets (ROA) has shown a steady trend, with values fluctuating between 15.86% to 18.70%. This metric suggests Alphabet's ability to generate profit from its assets has been consistently strong.
The Return on total capital and Return on equity (ROE) ratios both demonstrate a positive trend, showcasing the company's ability to deliver returns to both investors and debt holders. The Return on total capital has ranged from 26.16% to 30.73%, while the ROE has varied between 22.46% to 29.35% over the past eight quarters.
Overall, Alphabet Inc's profitability ratios indicate solid performance in utilizing its assets and capital effectively to generate returns for stakeholders. The company's consistent profitability metrics reflect strong management and operational efficiency during the period under review.