Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
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Alphabet Inc., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The analysis of the annual financial data reveals clear growth trends in several key areas over the five-year period. Revenues show a consistent increase year over year, rising from approximately $182.5 billion at the end of 2020 to around $350 billion by the end of 2024, indicating robust sales growth and expanding business operations.
Cost of revenues also increases each year but at a slower rate compared to revenues, leading to a rising gross profit which grows from about $97.8 billion in 2020 to $203.7 billion in 2024. This improvement in gross profit implies enhanced efficiency or pricing power, contributing positively to the overall profitability.
Expenses in research and development exhibit a steady increase throughout the years, rising from roughly $27.6 billion in 2020 to $49.3 billion in 2024, reflecting significant ongoing investment in innovation and future product development. Sales and marketing expenses grow initially but remain relatively stable in the final year, suggesting potential efficiency gains or a strategic reallocation of spending.
General and administrative expenses increase from 2020 to 2023 but decrease notably in 2024, which may indicate improved operational efficiencies or cost control measures implemented during the latest period. Overall, the operating income trend is positive, with income from operations nearly tripling from approximately $41.2 billion in 2020 to $112.4 billion in 2024, demonstrating strong operational leverage and growing profitability.
Interest income experiences an upward trend, nearly doubling from 2020 to 2024, while interest expense shows a slight decrease, indicating improved net interest margins. Foreign currency exchange losses fluctuate over the years without a clear trend but remain relatively low compared to other financial figures.
Gains and losses on debt and equity securities are more volatile; gains on equity securities peak notably in 2021, followed by a sharp loss in 2022, then partial recovery in subsequent years. Performance fees show variability with losses in earlier years turning into modest gains later, suggesting changing investment income dynamics.
Income and impairment from equity method investments show minor losses in the latter years, which might indicate challenges or restructuring in associated investments. Other income and expense items are somewhat inconsistent, but overall other income shows a positive recovery in the last year observed.
Income before income taxes closely follows the positive operational trends, increasing substantially from about $48.1 billion in 2020 to nearly $120 billion in 2024. Provision for income taxes also rises over the period but at a lower absolute scale compared to income, corresponding with higher pre-tax earnings.
Net income exhibits significant growth, increasing from approximately $40.3 billion in 2020 to over $100 billion in 2024, reflecting the combined effects of rising revenues, controlled costs, and effective tax management. This overall growth in net income highlights strong financial performance and successful execution of business strategies over the observed period.