Alphabet Inc Class C (GOOG)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 86,025,000 | 78,781,000 | 73,802,000 | 70,953,000 | 71,685,000 | 78,967,000 | 85,774,000 | 88,738,000 | 91,080,000 | 85,303,000 | 75,569,000 | 61,798,000 | 48,217,000 | 40,196,000 | 35,440,000 | 39,322,000 | 39,725,000 | 39,105,000 | 40,565,000 | 32,635,000 |
| Long-term debt | US$ in thousands | 10,300,000 | 9,600,000 | 10,100,000 | 10,200,000 | 9,900,000 | 9,700,000 | 10,400,000 | 11,400,000 | 12,400,000 | 12,300,000 | 12,400,000 | 13,000,000 | 14,000,000 | 13,900,000 | 2,963,000 | 3,960,000 | 3,958,000 | 3,956,000 | 3,954,000 | 3,952,000 |
| Total stockholders’ equity | US$ in thousands | 283,379,000 | 273,202,000 | 267,141,000 | 260,894,000 | 256,144,000 | 253,626,000 | 255,419,000 | 254,004,000 | 251,635,000 | 244,567,000 | 237,565,000 | 230,013,000 | 222,544,000 | 212,920,000 | 207,322,000 | 203,659,000 | 201,442,000 | 194,969,000 | 192,192,000 | 183,472,000 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $86,025,000K ÷ ($10,300,000K + $283,379,000K)
= 29.29%
Alphabet Inc's return on total capital has exhibited a stable trend over the past eight quarters, ranging from 26.16% to 30.73%. The company's ability to generate returns from its total invested capital has been consistently strong, with an average of approximately 28.34% over this period.
The slight decrease in return on total capital from Q3 2022 to Q4 2022, followed by a subsequent increase in Q1 2023, indicates some fluctuations in the company's performance. However, overall, Alphabet Inc has maintained a robust performance in utilizing its total capital efficiently to generate profits.
The consistently high return on total capital suggests that Alphabet Inc has been effectively utilizing its capital to generate profits for its investors. This performance reflects the company's operational efficiency and strategic investment decisions, which have translated into strong returns for shareholders over the past two years.
Peer comparison
Dec 31, 2023