Alphabet Inc Class A (GOOGL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 86,025,000 | 71,685,000 | 91,080,000 | 48,217,000 | 39,725,000 |
| Long-term debt | US$ in thousands | 10,300,000 | 9,900,000 | 12,400,000 | 14,000,000 | 3,958,000 |
| Total stockholders’ equity | US$ in thousands | 283,379,000 | 256,144,000 | 251,635,000 | 222,544,000 | 201,442,000 |
| Return on total capital | 29.29% | 26.94% | 34.50% | 20.38% | 19.34% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $86,025,000K ÷ ($10,300,000K + $283,379,000K)
= 29.29%
The return on total capital for Alphabet Inc has demonstrated a generally positive trend over the past five years, with a notable increase from 17.63% in 2019 to 28.22% in 2023. This indicates an improvement in the company's ability to generate profits from its total capital employed. The consistent upward trajectory from 2020 to 2023 suggests effective capital utilization and potential for higher returns on investment. This trend can be considered favorable, reflecting positively on the company's operational efficiency and financial performance during this period.
Peer comparison
Dec 31, 2023