Alphabet Inc Class C (GOOG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 112,390,000 | 86,025,000 | 71,685,000 | 91,080,000 | 48,217,000 |
| Long-term debt | US$ in thousands | 10,883,000 | 11,870,000 | 9,900,000 | 12,400,000 | 14,000,000 |
| Total stockholders’ equity | US$ in thousands | 325,084,000 | 283,379,000 | 256,144,000 | 251,635,000 | 222,544,000 |
| Return on total capital | 33.45% | 29.14% | 26.94% | 34.50% | 20.38% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $112,390,000K ÷ ($10,883,000K + $325,084,000K)
= 33.45%
The return on total capital for Alphabet Inc Class C has shown a positive trend over the five-year period from December 31, 2020, to December 31, 2024. Starting at 20.38% in 2020, the return on total capital increased to 34.50% by the end of 2021, indicating improved efficiency in generating profits relative to the total capital employed.
Although there was a slight dip to 26.94% in 2022, the return on total capital bounced back to 29.14% in 2023, reflecting a continued focus on maximizing returns from the company's total capital base. Notably, the return on total capital further increased to 33.45% by the end of 2024, suggesting enhanced capital utilization efficiency and potentially indicating successful investment strategies or operational improvements.
Overall, the upward trend in return on total capital for Alphabet Inc Class C demonstrates the company's ability to generate higher returns relative to the capital invested, which is a positive indicator of operational performance and financial management.
Peer comparison
Dec 31, 2024