Alphabet Inc Class A (GOOGL)
Profitability ratios
Return on sales
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 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% | 55.66% | 55.66% | 55.86% | 56.28% |
| Operating profit margin | 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% | 21.20% | 21.39% | 21.99% | 18.66% |
| Pretax margin | 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% | 24.54% | 25.13% | 27.26% | 22.90% |
| Net profit margin | 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% | 21.27% | 21.02% | 23.41% | 19.71% |
Alphabet Inc's profitability ratios have shown a consistent trend over the past eight quarters. The gross profit margin has remained relatively stable, hovering around the mid-50% range, indicating efficient production and pricing strategies.
The operating profit margin, pretax margin, and net profit margin have all exhibited a gradual decline over this period. Although the operating profit margin has decreased from 30.47% to 27.23%, the company still maintains a healthy level of profitability, suggesting effective cost management. However, the decline in pretax and net profit margins from 32.69% to 27.89% and 27.57% to 24.01% respectively, may indicate increasing operating expenses or declining revenues.
Overall, while Alphabet Inc continues to generate strong profits, the decreasing trend in operating, pretax, and net profit margins warrants further investigation into cost control and revenue generation strategies to sustain the company's profitability in the long term.
Return on investment
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 12.41% | 12.62% | 12.69% | 10.80% |
| Return on assets (ROA) | 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% | 12.45% | 12.40% | 13.51% | 11.41% |
| Return on total capital | 29.29% | 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% | 19.34% | 19.66% | 20.68% | 17.41% |
| Return on equity (ROE) | 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% | 17.05% | 16.73% | 18.08% | 15.26% |
Over the past eight quarters, Alphabet Inc has demonstrated strong profitability, as indicated by its return on assets (ROA) and return on equity (ROE) ratios. The operating return on assets (Operating ROA) has ranged from 19.33% to 23.22%, with the latest figure standing at 20.80%. Similarly, the ROA has varied between 15.86% and 20.87%, reaching 18.34% in the most recent quarter. This indicates that Alphabet Inc has consistently generated significant earnings relative to its assets.
Furthermore, the return on equity (ROE) has ranged from 22.46% to 29.35% over the same period. The latest figure, at 26.04%, reinforces the company's ability to deliver strong returns to its equity shareholders.
Additionally, the return on total capital has also been consistently high, ranging from 26.16% to 30.73%, with the latest figure at 28.22%. This indicates efficient utilization of both equity and debt capital to generate earnings.
Altogether, these profitability ratios reflect the company's ability to generate earnings from its assets and equity, as well as its overall capital structure. The sustained high levels of profitability suggest strong performance and effective management of the company's resources.