Alphabet Inc Class A (GOOGL)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 85,717,000 | 71,328,000 | 90,734,000 | 48,082,000 | 39,625,000 |
| Revenue | US$ in thousands | 305,559,000 | 281,279,000 | 257,637,000 | 182,527,000 | 161,857,000 |
| Pretax margin | 28.05% | 25.36% | 35.22% | 26.34% | 24.48% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $85,717,000K ÷ $305,559,000K
= 28.05%
Based on the provided data, the pretax margin of Alphabet Inc has shown some fluctuations over the past five years. The pretax margin measures the company's ability to generate profits before accounting for its tax obligations, and the trend in this margin reflects changes in the company's cost structure and operating efficiency.
In 2023, the pretax margin stood at 27.89%, reflecting an increase from the previous year's 25.22%. This improvement suggests that Alphabet Inc was able to better manage its operating expenses relative to its revenue, resulting in a higher level of profitability before taxes.
The 2023 pretax margin, however, was lower than the 2021 level of 35.22%, indicating a decline in profitability from the prior year. This could potentially be attributed to increased expenses or other factors impacting the company's operating income.
The 2023 pretax margin also surpassed the levels seen in 2020 and 2019, indicating an overall improvement in the company's ability to generate profits before taxes in comparison to those years.
In conclusion, while Alphabet Inc's pretax margin has shown some variability, the latest data suggests a positive trend in profitability before taxes, albeit with some fluctuations in between. This indicates the company's ability to manage its operating costs and generate profit, but it also highlights the potential impact of changing economic conditions and business decisions on its financial performance.
Peer comparison
Dec 31, 2023