Alphabet Inc Class A (GOOGL)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 100,118,000 | 73,795,000 | 59,972,000 | 76,033,000 | 40,269,000 |
| Total stockholders’ equity | US$ in thousands | 325,084,000 | 283,379,000 | 256,144,000 | 251,635,000 | 222,544,000 |
| ROE | 30.80% | 26.04% | 23.41% | 30.22% | 18.09% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $100,118,000K ÷ $325,084,000K
= 30.80%
Alphabet Inc Class A's return on equity (ROE) has experienced fluctuations over the past few years. In December 31, 2020, the ROE stood at 18.09%, which increased significantly to 30.22% by December 31, 2021. This notable improvement indicates the company's ability to generate profit from shareholders' equity.
In the subsequent years, the ROE continued to show positive trends but with some variations. By December 31, 2022, the ROE decreased slightly to 23.41%, indicating a potential slowdown in the efficiency of utilizing equity to generate profits. However, the ROE rebounded to 26.04% by December 31, 2023, suggesting a recovery in profitability performance.
The most recent data point, December 31, 2024, reveals a further increase in ROE to 30.80%. This demonstrates Alphabet Inc Class A's enhanced ability to generate higher returns on shareholder equity, which is a positive indicator of the company's financial health and operational efficiency.
Overall, Alphabet Inc Class A's ROE has shown a general increasing trend over the years, with some fluctuations, reflecting the company's effectiveness in utilizing shareholders' equity to generate profits and create value for investors.
Peer comparison
Dec 31, 2024