Alphabet Inc Class A (GOOGL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 283,379,000 | 256,144,000 | 251,635,000 | 222,544,000 | 201,442,000 |
| ROE | 26.04% | 23.41% | 30.22% | 18.09% | 17.05% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $73,795,000K ÷ $283,379,000K
= 26.04%
Based on the data provided, Alphabet Inc's return on equity (ROE) has shown a generally positive trend over the past five years. The ROE increased from 17.05% in 2019 to 26.04% in 2023. This indicates that the company's ability to generate profits from its shareholders' equity has been improving.
The above-average ROE figures suggest that Alphabet Inc has been effectively utilizing its shareholders' equity to generate earnings. A higher ROE indicates that the company is more efficient in utilizing equity capital to generate profits, which is a positive signal for investors and shareholders.
Overall, the trend in Alphabet Inc's ROE indicates that the company has been successful in increasing its profitability relative to the shareholders' equity invested in the business. This improvement in ROE over the five-year period suggests good financial performance and efficient use of equity capital. However, it is essential to consider other financial metrics and qualitative factors to comprehensively assess the company's financial position and performance.
Peer comparison
Dec 31, 2023