Alphabet Inc., adjustment to net income

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (as reported)	73,795)	59,972)	76,033)	40,269)	34,343)
Add: Net change in available-for-sale investments, net of tax	2,512)	(3,713)	(1,376)	800)	1,500)
Net income (adjusted)	76,307)	56,259)	74,657)	41,069)	35,843)

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Alphabet Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	24.01%	21.20%	29.51%	22.06%	21.22%
Adjusted net profit margin	24.82%	19.89%	28.98%	22.50%	22.14%
Return on Equity (ROE)
Reported ROE	26.04%	23.41%	30.22%	18.09%	17.05%
Adjusted ROE	26.93%	21.96%	29.67%	18.45%	17.79%
Return on Assets (ROA)
Reported ROA	18.34%	16.42%	21.16%	12.60%	12.45%
Adjusted ROA	18.96%	15.40%	20.78%	12.85%	12.99%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Alphabet Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Alphabet Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Alphabet Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

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	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	73,795)	59,972)	76,033)	40,269)	34,343)
Revenues	307,394)	282,836)	257,637)	182,527)	161,857)
Profitability Ratio
Net profit margin¹	24.01%	21.20%	29.51%	22.06%	21.22%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	76,307)	56,259)	74,657)	41,069)	35,843)
Revenues	307,394)	282,836)	257,637)	182,527)	161,857)
Profitability Ratio
Adjusted net profit margin²	24.82%	19.89%	28.98%	22.50%	22.14%

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 73,795 ÷ 307,394 = 24.01%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 76,307 ÷ 307,394 = 24.82%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Alphabet Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	73,795)	59,972)	76,033)	40,269)	34,343)
Stockholders’ equity	283,379)	256,144)	251,635)	222,544)	201,442)
Profitability Ratio
ROE¹	26.04%	23.41%	30.22%	18.09%	17.05%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	76,307)	56,259)	74,657)	41,069)	35,843)
Stockholders’ equity	283,379)	256,144)	251,635)	222,544)	201,442)
Profitability Ratio
Adjusted ROE²	26.93%	21.96%	29.67%	18.45%	17.79%

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 73,795 ÷ 283,379 = 26.04%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 76,307 ÷ 283,379 = 26.93%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Alphabet Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	73,795)	59,972)	76,033)	40,269)	34,343)
Total assets	402,392)	365,264)	359,268)	319,616)	275,909)
Profitability Ratio
ROA¹	18.34%	16.42%	21.16%	12.60%	12.45%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	76,307)	56,259)	74,657)	41,069)	35,843)
Total assets	402,392)	365,264)	359,268)	319,616)	275,909)
Profitability Ratio
Adjusted ROA²	18.96%	15.40%	20.78%	12.85%	12.99%

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 73,795 ÷ 402,392 = 18.34%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 76,307 ÷ 402,392 = 18.96%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Alphabet Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Alphabet Inc. (NASDAQ:GOOG)

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