Alphabet Inc Class A (GOOGL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 58.06% | 57.68% | 57.11% | 56.84% | 56.35% | 55.51% | 55.16% | 55.07% | 55.17% | 56.14% | 56.70% | 56.88% | 56.88% | 56.33% | 55.56% | 54.12% | 53.37% | 53.63% | 54.20% | 55.16% |
| Operating profit margin | 32.22% | 31.05% | 30.00% | 29.21% | 27.60% | 26.73% | 25.90% | 25.49% | 26.59% | 27.82% | 29.68% | 30.51% | 30.60% | 30.42% | 28.56% | 25.37% | 22.69% | 20.36% | 19.82% | 21.41% |
| 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% |
| Net profit margin | 28.70% | 27.85% | 26.85% | 26.07% | 24.16% | 22.65% | 21.18% | 20.69% | 21.30% | 23.72% | 25.92% | 27.61% | 29.55% | 29.64% | 28.68% | 26.22% | 22.16% | 20.87% | 19.05% | 20.76% |
Alphabet Inc Class A has shown steady improvement in its profitability ratios over the past few years. The gross profit margin has increased consistently, reaching 58.06% by December 31, 2024, indicating the company's ability to efficiently generate profit from its core operations.
Similarly, the operating profit margin and pretax margin have shown an upward trend, with operating profit margin increasing to 32.22% by December 31, 2024, and pretax margin reaching 34.35% by the same period. These margins reflect Alphabet Inc's strong operational efficiency and effective cost management.
Moreover, the net profit margin has also shown improvement, rising to 28.70% by December 31, 2024. This demonstrates the company's ability to effectively convert its revenue into net income, indicating solid profitability and financial performance.
Overall, Alphabet Inc Class A's profitability ratios suggest a positive and improving financial outlook, with consistently increasing margins across different profitability metrics.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 22.24% | 21.91% | 21.13% | 20.23% | 18.34% | 16.82% | 15.91% | 15.86% | 16.42% | 18.70% | 20.28% | 20.87% | 21.16% | 20.33% | 18.76% | 15.70% | 12.60% | 11.93% | 11.32% | 12.63% |
| Return on total capital | 34.33% | 33.63% | 32.82% | 31.85% | 29.14% | 27.86% | 26.62% | 26.17% | 26.94% | 29.99% | 32.27% | 33.44% | 34.50% | 33.21% | 30.23% | 25.43% | 20.38% | 17.72% | 16.85% | 18.94% |
| Return on equity (ROE) | 30.80% | 30.01% | 29.15% | 28.14% | 26.04% | 24.43% | 22.82% | 22.46% | 23.41% | 26.41% | 28.20% | 29.35% | 30.22% | 28.87% | 26.49% | 22.33% | 18.09% | 16.77% | 15.21% | 16.95% |
Alphabet Inc Class A's profitability ratios show a positive trend over the periods analyzed.
- The Operating Return on Assets (Operating ROA) increased steadily from 13.02% as of March 31, 2020, to 24.96% by December 31, 2024, indicating the company's efficient utilization of its operating assets to generate profits.
- Similarly, the Return on Assets (ROA) rose from 12.63% in March 2020 to 22.24% by December 31, 2024, demonstrating the company's ability to generate profits from its total assets.
- The Return on Total Capital also exhibited a consistent increase from 18.94% in March 2020 to 34.33% by December 31, 2024, indicating the effectiveness of Alphabet Inc's capital allocation strategies in generating returns for its capital providers.
- The Return on Equity (ROE) followed an upward trajectory from 16.95% in March 2020 to 30.80% by December 31, 2024, depicting the shareholders' return on their investments in the company.
Overall, the improving profitability ratios suggest that Alphabet Inc Class A has been successful in generating higher returns relative to its assets, capital, and equity over the analyzed period, reflecting positively on its operational efficiency and financial management.