Alphabet Inc Class A (GOOGL)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 112,390,000 84,293,000 74,842,000 78,714,000 41,224,000
Revenue US$ in thousands 348,963,000 305,559,000 281,279,000 257,637,000 182,527,000
Operating profit margin 32.21% 27.59% 26.61% 30.55% 22.59%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $112,390,000K ÷ $348,963,000K
= 32.21%

The operating profit margin of Alphabet Inc Class A has shown a consistent growth trend from 22.59% as of December 31, 2020, to 32.21% as of December 31, 2024. This indicates an improvement in the company's ability to generate profits from its core operations over the years. The margin peaked in 2024, reflecting enhanced efficiency and effective cost management. Despite a slight fluctuation in 2022, the overall trajectory demonstrates a positive financial performance in terms of profitability. It suggests that Alphabet Inc Class A has been able to optimize its operating expenses and maximize revenue generation, contributing to its sustained profitability over the years.