Alphabet Inc Class A (GOOGL)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 119,815,000 | 85,717,000 | 71,328,000 | 90,734,000 | 48,082,000 |
| Revenue | US$ in thousands | 348,963,000 | 305,559,000 | 281,279,000 | 257,637,000 | 182,527,000 |
| Pretax margin | 34.33% | 28.05% | 25.36% | 35.22% | 26.34% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $119,815,000K ÷ $348,963,000K
= 34.33%
The pretax margin, a key profitability ratio, measures the efficiency of Alphabet Inc Class A in generating profits before taxes relative to its total revenue. The trend analysis of the pretax margin from December 31, 2020, to December 31, 2024, reveals fluctuations in the company's operational performance.
Alphabet Inc Class A's pretax margin has shown a varying pattern over the years, starting at 26.34% in 2020 and reaching its lowest point at 25.36% in 2022. However, the company managed to significantly improve its profitability in the following years, with the pretax margin increasing to 35.22% in 2021, 28.05% in 2023, and peaking at 34.33% in 2024.
The upward trend observed in the pretax margin indicates Alphabet Inc Class A's ability to effectively manage its costs and enhance operational efficiency, leading to higher profitability levels. However, the slight decline in 2023 compared to the previous year suggests potential challenges or fluctuations in the company's financial performance during that period.
Overall, the fluctuating pretax margin of Alphabet Inc Class A underscores the company's adaptability to market conditions and its efforts to optimize profitability, reflecting a mix of operational strengths and possible challenges encountered during the analyzed period.
Peer comparison
Dec 31, 2024