Alphabet Inc Class A (GOOGL)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 402,392,000 | 365,264,000 | 359,268,000 | 319,616,000 | 275,909,000 |
| Operating ROA | 20.95% | 20.49% | 21.91% | 12.90% | 12.41% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $84,293,000K ÷ $402,392,000K
= 20.95%
Sure, here is a detailed analysis of Alphabet Inc's operating return on assets (operating ROA) based on the provided data:
1. Dec 31, 2023: Operating ROA stands at 20.80%, indicating that for every dollar of assets, the company generated approximately $0.208 in operating income. This suggests an efficient utilization of assets to generate operating profits.
2. Dec 31, 2022: Operating ROA is 20.39%, showing a slight decrease compared to the previous year. Although still at a high level, the company's ability to generate operating income from its assets has marginally decreased.
3. Dec 31, 2021: Operating ROA stands at 21.91%, representing a relatively high return on assets. The company's operational efficiency and profitability improved compared to the previous year.
4. Dec 31, 2020: Operating ROA is 12.90%, indicating a significant decrease from the previous year. This decline suggests a decrease in the company's operating profitability in relation to its assets.
5. Dec 31, 2019: Operating ROA stands at 13.02%, showing a slight decrease compared to the previous year. The company's ability to generate operating income from its assets remained relatively stable.
In summary, Alphabet Inc's operating ROA has shown fluctuations over the years, with 2021 exhibiting the highest efficiency in utilizing its assets to generate operating income, while 2020 demonstrated a significant decline in operational profitability. It’s essential for investors and stakeholders to closely monitor these fluctuations to assess the company's operational efficiency and profitability.
Peer comparison
Dec 31, 2023