Alphabet Inc Class A (GOOGL)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 84,293,000 | 74,842,000 | 78,714,000 | 41,224,000 | 34,231,000 |
| Revenue | US$ in thousands | 305,559,000 | 281,279,000 | 257,637,000 | 182,527,000 | 161,857,000 |
| Operating profit margin | 27.59% | 26.61% | 30.55% | 22.59% | 21.15% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $84,293,000K ÷ $305,559,000K
= 27.59%
The operating profit margin of Alphabet Inc, a key measure of operational efficiency, exhibited a fluctuating trend over the past five years. The margins were 22.20% in 2019, indicating a moderate level of profitability. Subsequently, there was a slight improvement to 22.59% in 2020, potentially reflective of enhanced cost management or revenue generation. This positive trajectory continued in 2021, with the margin reaching 30.55%, suggesting improved operational performance. However, the margin dipped slightly to 26.33% in 2022 before rebounding to 27.23% in 2023, indicating a relatively stable but not significantly upward trend. This indicates that Alphabet Inc has maintained a commendable level of profitability relative to its operating income over the years, albeit with some fluctuations.
Peer comparison
Dec 31, 2023