Net Profit Margin
since 2005
Calculation
Alphabet Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 28.60% | = | 100 | × | 100,118) | ÷ | 350,018) |
| Dec 31, 2023 | 24.01% | = | 100 | × | 73,795) | ÷ | 307,394) |
| Dec 31, 2022 | 21.20% | = | 100 | × | 59,972) | ÷ | 282,836) |
| Dec 31, 2021 | 29.51% | = | 100 | × | 76,033) | ÷ | 257,637) |
| Dec 31, 2020 | 22.06% | = | 100 | × | 40,269) | ÷ | 182,527) |
| Dec 31, 2019 | 21.22% | = | 100 | × | 34,343) | ÷ | 161,857) |
| Dec 31, 2018 | 22.46% | = | 100 | × | 30,736) | ÷ | 136,819) |
| Dec 31, 2017 | 11.42% | = | 100 | × | 12,662) | ÷ | 110,855) |
| Dec 31, 2016 | 21.58% | = | 100 | × | 19,478) | ÷ | 90,272) |
| Dec 31, 2015 | 21.80% | = | 100 | × | 16,348) | ÷ | 74,989) |
| Dec 31, 2014 | 21.88% | = | 100 | × | 14,444) | ÷ | 66,001) |
| Dec 31, 2013 | 21.60% | = | 100 | × | 12,920) | ÷ | 59,825) |
| Dec 31, 2012 | 21.40% | = | 100 | × | 10,737) | ÷ | 50,175) |
| Dec 31, 2011 | 25.69% | = | 100 | × | 9,737) | ÷ | 37,905) |
| Dec 31, 2010 | 29.01% | = | 100 | × | 8,505) | ÷ | 29,321) |
| Dec 31, 2009 | 27.57% | = | 100 | × | 6,520) | ÷ | 23,651) |
| Dec 31, 2008 | 19.39% | = | 100 | × | 4,227) | ÷ | 21,796) |
| Dec 31, 2007 | 25.33% | = | 100 | × | 4,204) | ÷ | 16,594) |
| Dec 31, 2006 | 29.02% | = | 100 | × | 3,077) | ÷ | 10,605) |
| Dec 31, 2005 | 23.87% | = | 100 | × | 1,465) | ÷ | 6,139) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in millions
- Net Income
-
Net income exhibited a generally upward trajectory from 2005 through 2024, increasing from 1,465 million USD in 2005 to 100,118 million USD in 2024. There was a consistent rise with only limited fluctuations until 2017, when net income decreased significantly to 12,662 million USD from 19,478 million USD the previous year. Following this decline, a substantial recovery and subsequent growth occurred, peaking at 76,033 million USD by 2021. Afterward, a decline was noted in 2022, with net income decreasing to 59,972 million USD, but it recovered again in the subsequent years, culminating in the highest recorded figure in 2024.
- Revenues
-
Revenues demonstrated strong and steady growth throughout the entire period, progressing from 6,139 million USD in 2005 to 350,018 million USD in 2024. The increase was consistent year-over-year without notable declines, reflecting sustained expansion of the business. This consistent upward trend highlights robust top-line performance across the two decades.
- Net Profit Margin
-
Net profit margin experienced volatility within the observed period. It began at 23.87% in 2005, peaked at 29.02% in 2006, and subsequently fluctuated between approximately 19% and 29% for most years. There was a noticeable dip to 11.42% in 2017, coinciding with the significant drop in net income. After 2017, margins recovered to levels above 20%, reaching as high as 29.51% in 2021 before decreasing again to 21.20% in 2022. In the last two years, margins improved, finishing at 28.60% in 2024. Overall, despite some dips, the margin remained within a moderately high range, demonstrating the company's ability to maintain profitability alongside growth in revenue.
- Summary of Trends and Insights
-
The data reflect a company experiencing strong and consistent revenue growth accompanied by generally increasing net income levels, except for a notable profit contraction in 2017. The recovery in net income and profit margin after this dip indicates operational resilience and possible strategic adjustments. The sustained high profit margins over most years suggest effective cost management and pricing power. Margins and net income volatility around 2017 may warrant further investigation into specific business or economic conditions affecting that year. Nonetheless, the overall trend is one of significant financial growth and profitability enhancement over the two decades.
Comparison to Competitors
Alphabet Inc., net profit margin, long-term trends, comparison to competitors
| Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2024 | 28.60% | 13.09% | 37.91% | 22.34% | -69.99% | 5.44% |
| Dec 31, 2023 | 24.01% | 12.66% | 28.98% | 16.04% | -21.02% | 2.65% |
| Dec 31, 2022 | 21.20% | 4.42% | 19.90% | 14.21% | 11.93% | 3.80% |
| Dec 31, 2021 | 29.51% | 12.17% | 33.38% | 17.23% | 17.46% | 2.96% |
| Dec 31, 2020 | 22.06% | 10.17% | 33.90% | 11.05% | 13.09% | -4.38% |
| Dec 31, 2019 | 21.22% | 11.99% | 26.15% | 9.26% | 12.51% | 15.89% |
| Dec 31, 2018 | 22.46% | 12.41% | 39.60% | 7.67% | 9.68% | 21.20% |
| Dec 31, 2017 | 11.42% | 26.87% | 39.20% | 4.78% | 3.78% | 16.29% |
| Dec 31, 2016 | 21.58% | 10.81% | 36.97% | 2.11% | -0.59% | 16.88% |
| Dec 31, 2015 | 21.80% | 10.96% | 20.57% | 1.81% | -25.81% | 15.98% |
| Dec 31, 2014 | 21.88% | 12.18% | 23.58% | 4.85% | 15.38% | 15.37% |
| Dec 31, 2013 | 21.60% | 10.54% | 19.05% | 2.57% | -2.43% | 13.62% |
| Dec 31, 2012 | 21.40% | 9.91% | 1.04% | 0.48% | -13.18% | 13.44% |
| Dec 31, 2011 | 25.69% | 7.45% | — | 7.06% | 4.26% | 11.76% |
| Dec 31, 2010 | 29.01% | 9.58% | — | 7.44% | -16.12% | 10.41% |
| Dec 31, 2009 | 27.57% | 10.17% | — | 6.94% | -14.24% | 9.15% |
| Dec 31, 2008 | 19.39% | 7.44% | — | 6.08% | 6.32% | 11.70% |
| Dec 31, 2007 | 25.33% | 8.37% | — | 5.55% | -14.10% | 13.20% |
| Dec 31, 2006 | 29.02% | 10.15% | — | 4.92% | -17.81% | 9.84% |
| Dec 31, 2005 | 23.87% | 4.17% | — | 6.16% | 3.12% | 7.93% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Media & Entertainment)
Alphabet Inc., net profit margin, long-term trends, comparison to sector (media & entertainment)
| Alphabet Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2024 | 28.60% | 24.37% |
| Dec 31, 2023 | 24.01% | 19.50% |
| Dec 31, 2022 | 21.20% | 15.12% |
| Dec 31, 2021 | 29.51% | 23.17% |
| Dec 31, 2020 | 22.06% | 17.24% |
| Dec 31, 2019 | 21.22% | 18.24% |
| Dec 31, 2018 | 22.46% | 21.57% |
| Dec 31, 2017 | 11.42% | 20.00% |
| Dec 31, 2016 | 21.58% | 18.15% |
| Dec 31, 2015 | 21.80% | 15.99% |
| Dec 31, 2014 | 21.88% | 16.62% |
| Dec 31, 2013 | 21.60% | 15.00% |
| Dec 31, 2012 | 21.40% | 13.72% |
| Dec 31, 2011 | 25.69% | 13.66% |
| Dec 31, 2010 | 29.01% | 14.91% |
| Dec 31, 2009 | 27.57% | 13.69% |
| Dec 31, 2008 | 19.39% | 11.76% |
| Dec 31, 2007 | 25.33% | 13.39% |
| Dec 31, 2006 | 29.02% | 12.31% |
| Dec 31, 2005 | 23.87% | 8.05% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Communication Services)
Alphabet Inc., net profit margin, long-term trends, comparison to industry (communication services)
| Alphabet Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2024 | 28.60% | 20.53% |
| Dec 31, 2023 | 24.01% | 16.48% |
| Dec 31, 2022 | 21.20% | 11.47% |
| Dec 31, 2021 | 29.51% | 18.71% |
| Dec 31, 2020 | 22.06% | 11.50% |
| Dec 31, 2019 | 21.22% | 14.62% |
| Dec 31, 2018 | 22.46% | 16.41% |
| Dec 31, 2017 | 11.42% | 19.78% |
| Dec 31, 2016 | 21.58% | 12.77% |
| Dec 31, 2015 | 21.80% | 12.70% |
| Dec 31, 2014 | 21.88% | 10.14% |
| Dec 31, 2013 | 21.60% | 12.53% |
| Dec 31, 2012 | 21.40% | 7.53% |
| Dec 31, 2011 | 25.69% | 6.73% |
| Dec 31, 2010 | 29.01% | 11.37% |
| Dec 31, 2009 | 27.57% | 9.01% |
| Dec 31, 2008 | 19.39% | 9.64% |
| Dec 31, 2007 | 25.33% | 9.70% |
| Dec 31, 2006 | 29.02% | 10.04% |
| Dec 31, 2005 | 23.87% | 9.49% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).