Alphabet Inc Class A (GOOGL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 112,390,000 | 86,025,000 | 71,685,000 | 91,080,000 | 48,217,000 |
| Long-term debt | US$ in thousands | 10,883,000 | 11,870,000 | 9,900,000 | 12,400,000 | 14,000,000 |
| Total stockholders’ equity | US$ in thousands | 325,084,000 | 283,379,000 | 256,144,000 | 251,635,000 | 222,544,000 |
| Return on total capital | 33.45% | 29.14% | 26.94% | 34.50% | 20.38% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $112,390,000K ÷ ($10,883,000K + $325,084,000K)
= 33.45%
The return on total capital for Alphabet Inc Class A has shown a positive trend over the years, increasing from 20.38% as of December 31, 2020, to 33.45% as of December 31, 2024. This indicates that the company has been effectively utilizing its capital to generate profits and create value for its shareholders. The significant improvement in return on total capital reflects Alphabet's strong operational performance and efficient use of its resources. It suggests that Alphabet has been successful in generating higher returns relative to the total capital employed in its business activities, which is a positive indicator of financial health and overall efficiency.
Peer comparison
Dec 31, 2024