Alphabet Inc Class C (GOOG)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 283,379,000 | 256,144,000 | 251,635,000 | 222,544,000 | 201,442,000 |
| ROE | 26.04% | 23.41% | 30.22% | 18.09% | 17.05% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $73,795,000K ÷ $283,379,000K
= 26.04%
The return on equity (ROE) of Alphabet Inc has shown a positive trend over the past five years, indicating the company's ability to generate strong returns from shareholders' equity. In 2023, the ROE increased to 26.04% from 23.41% in 2022, continuing the upward trajectory observed since 2020. This improvement suggests that the company has been effectively utilizing its equity to generate profits and create value for shareholders. The consistent growth in ROE reflects the company's efficient management of its resources and the ability to generate higher profits relative to its equity base. This trend is favorable as it indicates the company's ability to generate increasing returns for its shareholders, which can be viewed positively by potential investors and stakeholders.
Peer comparison
Dec 31, 2023