Alphabet Inc Class A (GOOGL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 73,795,000 | 59,972,000 | 76,033,000 | 40,269,000 | 34,343,000 |
| Total assets | US$ in thousands | 402,392,000 | 365,264,000 | 359,268,000 | 319,616,000 | 275,909,000 |
| ROA | 18.34% | 16.42% | 21.16% | 12.60% | 12.45% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $73,795,000K ÷ $402,392,000K
= 18.34%
Alphabet Inc's return on assets (ROA) measures its ability to generate profit from its assets. The ROA has shown a consistent upward trend over the past five years, increasing from 12.45% in 2019 to 18.34% in 2023. This indicates that the company has been effectively utilizing its assets to generate higher profits over time. The ROA of 18.34% in 2023 reflects that for every dollar of assets, Alphabet Inc generated 18.34 cents in net income. This trend suggests that the company's management is efficiently deploying its assets to generate increasing profits, which is a favorable sign for investors and stakeholders.
Peer comparison
Dec 31, 2023