Alphabet Inc Class C (GOOG)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 73,795,000 | 59,972,000 | 76,033,000 | 40,269,000 | 34,343,000 |
| Total assets | US$ in thousands | 402,392,000 | 365,264,000 | 359,268,000 | 319,616,000 | 275,909,000 |
| ROA | 18.34% | 16.42% | 21.16% | 12.60% | 12.45% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $73,795,000K ÷ $402,392,000K
= 18.34%
Alphabet Inc's return on assets (ROA) has been fluctuating over the past five years. The ROA stood at 12.45% in 2019 and increased to 12.60% in 2020, indicating a slight improvement. However, there was a substantial rise in ROA to 21.16% in 2021, suggesting a significant increase in the company's profitability in effectively utilizing its assets to generate earnings. Subsequently, in 2022, the ROA decreased to 16.42%, but it rebounded to 18.34% in 2023, demonstrating a positive trend in generating returns from its assets. Overall, the fluctuation in ROA suggests varying levels of efficiency in generating profits from its asset base, with the company experiencing both improvements and declines in recent years.
Peer comparison
Dec 31, 2023