Alphabet Inc Class A (GOOGL)

Pretax margin

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
Earnings before tax but after interest (EBT) (ttm) US$ in thousands 119,815,000 111,984,000 101,475,000 95,827,000 85,717,000 78,452,000 73,488,000 70,599,000 71,328,000 78,583,000 85,414,000 88,385,000 90,734,000 85,021,000 75,316,000 61,608,000 48,082,000 40,097,000 35,366,000 39,236,000
Revenue (ttm) US$ in thousands 348,853,000 338,527,000 326,485,000 316,133,000 305,445,000 294,667,000 287,780,000 283,140,000 281,513,000 282,362,000 277,870,000 270,007,000 257,262,000 238,240,000 219,442,000 195,859,000 181,704,000 171,155,000 165,528,000 166,276,000
Pretax margin 34.35% 33.08% 31.08% 30.31% 28.06% 26.62% 25.54% 24.93% 25.34% 27.83% 30.74% 32.73% 35.27% 35.69% 34.32% 31.46% 26.46% 23.43% 21.37% 23.60%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $119,815,000K ÷ $348,853,000K
= 34.35%

The pretax margin of Alphabet Inc Class A has shown a positive trend over the analyzed period. Starting at 23.60% in March 2020, it dipped slightly to 21.37% by June 2020 before steadily increasing to reach its peak at 35.69% in September 2021. Subsequently, there was a slight decline in the pretax margin to 25.34% by December 2022. However, the margin recovered and maintained an upward trajectory, reaching 34.35% by December 2024.

Overall, the pretax margin reflects Alphabet Inc's ability to efficiently manage costs and generate profits before accounting for taxes. The upward trend indicates improved operational efficiency and profitability during the period under consideration. It is essential to monitor this metric to assess the company's financial health and its ability to generate returns for shareholders.