Alphabet Inc Class A (GOOGL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 112,390,000 | 105,115,000 | 97,937,000 | 92,350,000 | 84,293,000 | 78,756,000 | 74,548,000 | 72,163,000 | 74,842,000 | 78,567,000 | 82,463,000 | 82,371,000 | 78,714,000 | 72,480,000 | 62,662,000 | 49,684,000 | 41,224,000 | 34,839,000 | 32,803,000 | 35,600,000 |
| Total assets | US$ in thousands | 450,256,000 | 430,266,000 | 414,770,000 | 407,350,000 | 402,392,000 | 396,711,000 | 383,044,000 | 369,491,000 | 365,264,000 | 358,255,000 | 355,185,000 | 357,096,000 | 359,268,000 | 347,403,000 | 335,387,000 | 327,095,000 | 319,616,000 | 299,243,000 | 278,492,000 | 273,403,000 |
| Operating ROA | 24.96% | 24.43% | 23.61% | 22.67% | 20.95% | 19.85% | 19.46% | 19.53% | 20.49% | 21.93% | 23.22% | 23.07% | 21.91% | 20.86% | 18.68% | 15.19% | 12.90% | 11.64% | 11.78% | 13.02% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $112,390,000K ÷ $450,256,000K
= 24.96%
Operating return on assets (operating ROA) is a financial ratio that measures a company's operating income generated per dollar of assets. For Alphabet Inc Class A, the operating ROA has shown a consistent upward trend over the past few years, starting at 13.02% as of March 31, 2020, and reaching 24.96% by December 31, 2024. This indicates that the company has been effectively utilizing its assets to generate operating income.
The operating ROA increased steadily from 2020 to 2022, peaking at 23.22% as of June 30, 2022. Subsequently, there was a slight decline in the ratio, reaching 19.46% by June 30, 2023, before recovering and exceeding previous levels. The highest point was achieved on December 31, 2024, at 24.96%.
The consistent improvement in operating ROA suggests that Alphabet Inc Class A has been able to increase its operating income relative to its assets over the analyzed period. This may be attributed to efficient operational management, effective asset utilization, and potentially successful business strategies.
Overall, the increasing trend in operating ROA reflects positively on Alphabet Inc Class A's operational performance and indicates the company's ability to generate earnings from its asset base.
Peer comparison
Dec 31, 2024