Alphabet Inc Class A (GOOGL)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 86,025,000 | 78,781,000 | 73,802,000 | 70,953,000 | 71,685,000 | 78,967,000 | 85,774,000 | 88,738,000 | 91,080,000 | 85,303,000 | 75,569,000 | 61,798,000 | 48,217,000 | 40,196,000 | 35,440,000 | 39,322,000 | 39,725,000 | 39,105,000 | 40,565,000 | 32,635,000 |
| Long-term debt | US$ in thousands | 10,300,000 | 9,600,000 | 10,100,000 | 10,200,000 | 9,900,000 | 9,700,000 | 10,400,000 | 11,400,000 | 12,400,000 | 12,300,000 | 12,400,000 | 13,000,000 | 14,000,000 | 13,900,000 | 2,963,000 | 3,960,000 | 3,958,000 | 3,956,000 | 3,954,000 | 3,952,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 201,442,000 | 194,969,000 | 192,192,000 | 183,472,000 |
| Return on total capital | 29.29% | 27.86% | 26.62% | 26.17% | 26.94% | 29.99% | 32.27% | 33.44% | 34.50% | 33.21% | 30.23% | 25.43% | 20.38% | 17.72% | 16.85% | 18.94% | 19.34% | 19.66% | 20.68% | 17.41% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $86,025,000K ÷ ($10,300,000K + $283,379,000K)
= 29.29%
Based on the provided data, Alphabet Inc's return on total capital has been relatively stable over the past eight quarters, ranging from 26.16% to 30.73%. This indicates the company's ability to generate earnings in relation to the total capital employed in its operations. The consistent levels of return on total capital suggest that the company has been effectively utilizing its capital to generate profits. However, it's important to note that a more comprehensive analysis would be required to understand the specific factors driving the changes in return on total capital over this period.
Peer comparison
Dec 31, 2023