Alphabet Inc Class C (GOOG)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	100,118,000	73,795,000	59,972,000	76,033,000	40,269,000
Total stockholders’ equity	US$ in thousands	325,084,000	283,379,000	256,144,000	251,635,000	222,544,000
ROE		30.80%	26.04%	23.41%	30.22%	18.09%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $100,118,000K ÷ $325,084,000K
= 30.80%

Alphabet Inc Class C's return on equity (ROE) has shown a positive trend over the years, increasing from 18.09% as of December 31, 2020, to 30.80% as of December 31, 2024. This indicates that the company has been efficiently utilizing its shareholder's equity to generate profits and create value for its investors.

The ROE of 30.80% as of December 31, 2024, suggests that for every dollar of equity invested by shareholders, Alphabet Inc Class C generated a return of 30.80 cents. This signifies a strong performance in terms of profitability and efficiency in utilizing shareholder funds.

The fluctuation in ROE over the years (ranging from 18.09% to 30.80%) may be due to various factors such as changes in revenue, expenses, debt levels, and asset management. Overall, the increasing trend in ROE reflects positively on Alphabet Inc Class C's ability to generate returns for its shareholders and indicates effective management of the company's resources to drive profitability and growth.