Alphabet Inc Class A (GOOGL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 115,327,000 | 108,836,000 | 101,628,000 | 96,149,000 | 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 |
| Long-term debt | US$ in thousands | 10,883,000 | 9,500,000 | 8,900,000 | 9,000,000 | 11,870,000 | 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 |
| 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 |
| Return on total capital | 34.33% | 33.63% | 32.82% | 31.85% | 29.14% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $115,327,000K ÷ ($10,883,000K + $325,084,000K)
= 34.33%
Return on total capital is a key financial metric used to assess a company's efficiency in generating returns from its invested capital. For Alphabet Inc Class A, the trend in return on total capital shows fluctuations over the periods under review.
From March 31, 2020, to December 31, 2020, the return on total capital increased steadily from 18.94% to 20.38%. Subsequently, there was a notable jump in performance, with return on total capital reaching 34.50% by the end of December 31, 2021. This significant increase indicates improved profitability and effective capital utilization by the company.
However, in the following periods up to June 30, 2022, there was a slight decline in return on total capital to 32.27%. The trend continued with a further decrease to 26.94% by December 31, 2022, suggesting a potential dip in profitability or efficiency in capital employment.
Despite this decline, Alphabet Inc Class A managed to improve its performance over the subsequent quarters, with return on total capital gradually increasing to 34.33% by December 31, 2024. This upward trend indicates a recovery in profitability and a potentially more efficient use of capital towards the end of the period analyzed.
Overall, the fluctuating trend in return on total capital for Alphabet Inc Class A reflects changing profitability levels and capital efficiency over the specified time frame, suggesting a mix of positive and challenging periods for the company.
Peer comparison
Dec 31, 2024