Alphabet Inc Class A (GOOGL)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 100,118,000 | 94,269,000 | 87,657,000 | 82,406,000 | 73,795,000 | 66,732,000 | 60,953,000 | 58,587,000 | 59,972,000 | 66,990,000 | 72,016,000 | 74,539,000 | 76,033,000 | 70,618,000 | 62,929,000 | 51,363,000 | 40,269,000 | 35,713,000 | 31,534,000 | 34,522,000 |
| Total stockholders’ equity | US$ in thousands | 325,084,000 | 314,119,000 | 300,753,000 | 292,844,000 | 283,379,000 | 273,202,000 | 267,141,000 | 260,894,000 | 256,144,000 | 253,626,000 | 255,419,000 | 254,004,000 | 251,635,000 | 244,567,000 | 237,565,000 | 230,013,000 | 222,544,000 | 212,920,000 | 207,322,000 | 203,659,000 |
| 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $100,118,000K ÷ $325,084,000K
= 30.80%
Alphabet Inc Class A's return on equity (ROE) has shown a generally increasing trend over the past few years, starting at 16.95% as of March 31, 2020, and gradually rising to 30.80% by December 31, 2024. This indicates that the company has been effectively utilizing its shareholders' equity to generate profits.
The ROE figures have seen significant growth particularly in the most recent periods, with a notable increase from 22.33% as of March 31, 2021, to 30.22% by December 31, 2021. The trend continued upward through September 30, 2022, reaching a peak of 30.01%. However, there was a slight decline in ROE in the following quarters, although remaining at healthy levels.
Overall, Alphabet Inc Class A's ROE performance demonstrates the company's ability to efficiently generate returns for its shareholders and effectively manage its equity capital. Investors and stakeholders may view the consistent increase in ROE as a positive indicator of the company's financial health and profitability.
Peer comparison
Dec 31, 2024