Alphabet Inc Class A (GOOGL)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 450,256,000 | 402,392,000 | 365,264,000 | 359,268,000 | 319,616,000 |
| Operating ROA | 24.96% | 20.95% | 20.49% | 21.91% | 12.90% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $112,390,000K ÷ $450,256,000K
= 24.96%
The operating return on assets (operating ROA) for Alphabet Inc Class A has shown a positive trend over the past five years. Starting at 12.90% on December 31, 2020, the operating ROA increased steadily to 21.91% by December 31, 2021, indicating an improvement in the company's ability to generate operating income from its assets.
The trend continued with operating ROA figures of 20.49% on December 31, 2022, 20.95% on December 31, 2023, and reaching a peak of 24.96% on December 31, 2024. This upward trajectory suggests that Alphabet Inc Class A has been effectively utilizing its assets to generate operating profits, reflecting strong operational efficiency and performance.
Overall, the increasing trend in operating ROA indicates Alphabet Inc Class A's ability to generate higher operating income relative to its assets over the analyzed period, showcasing the company's operational effectiveness and efficiency in producing returns for its shareholders.
Peer comparison
Dec 31, 2024