Alphabet Inc Class A (GOOGL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.07% | 56.36% | 55.13% | 56.94% | 53.58% |
| Operating profit margin | 32.21% | 27.59% | 26.61% | 30.55% | 22.59% |
| Pretax margin | 34.33% | 28.05% | 25.36% | 35.22% | 26.34% |
| Net profit margin | 28.69% | 24.15% | 21.32% | 29.51% | 22.06% |
Alphabet Inc Class A has shown a consistent improvement in its profitability ratios over the years. The gross profit margin has steadily increased from 53.58% in December 2020 to 58.07% in December 2024, indicating the company's ability to efficiently manage its production costs.
The operating profit margin has also shown a significant increase, from 22.59% in December 2020 to 32.21% in December 2024, reflecting the company's effectiveness in controlling its operational expenses and generating operating income.
Moreover, the pretax margin has increased from 26.34% in December 2020 to 34.33% in December 2024, demonstrating Alphabet Inc's ability to generate profits before accounting for taxes.
Lastly, the net profit margin has shown a consistent improvement, rising from 22.06% in December 2020 to 28.69% in December 2024. This indicates the company's efficiency in managing its overall expenses and generating profits for its shareholders.
Overall, Alphabet Inc Class A's profitability ratios reflect a positive trend, showcasing the company's strong financial performance and effective management of its operations.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 24.96% | 20.95% | 20.49% | 21.91% | 12.90% |
| Return on assets (ROA) | 22.24% | 18.34% | 16.42% | 21.16% | 12.60% |
| Return on total capital | 33.45% | 29.14% | 26.94% | 34.50% | 20.38% |
| Return on equity (ROE) | 30.80% | 26.04% | 23.41% | 30.22% | 18.09% |
Alphabet Inc Class A has exhibited positive trends in profitability ratios over the past five years based on the provided data.
1. Operating Return on Assets (Operating ROA): The company's operating ROA has shown consistent improvement, increasing from 12.90% in December 2020 to 24.96% in December 2024. This indicates that Alphabet Inc has been effectively generating profits from its operational assets.
2. Return on Assets (ROA): The ROA of the company has also seen a positive trajectory, rising from 12.60% in December 2020 to 22.24% in December 2024. This signifies that Alphabet Inc has been efficient in utilizing its total assets to generate profits for its stakeholders.
3. Return on Total Capital: The return on total capital has demonstrated steady growth over the years, escalating from 20.38% in December 2020 to 33.45% in December 2024. This indicates that the company has been successful in generating returns for both equity and debt holders.
4. Return on Equity (ROE): The ROE of Alphabet Inc has shown an upward trend, increasing from 18.09% in December 2020 to 30.80% in December 2024. This suggests that the company has been successful in generating returns for its shareholders based on their equity investments.
Overall, the profitability ratios of Alphabet Inc Class A reflect a strong financial performance and efficient utilization of assets and capital, leading to improved returns for both operational and investment activities.