Operating Profit Margin
since 2005
Calculation
Alphabet Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income from operations1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 32.11% | = | 100 | × | 112,390) | ÷ | 350,018) |
| Dec 31, 2023 | 27.42% | = | 100 | × | 84,293) | ÷ | 307,394) |
| Dec 31, 2022 | 26.46% | = | 100 | × | 74,842) | ÷ | 282,836) |
| Dec 31, 2021 | 30.55% | = | 100 | × | 78,714) | ÷ | 257,637) |
| Dec 31, 2020 | 22.59% | = | 100 | × | 41,224) | ÷ | 182,527) |
| Dec 31, 2019 | 21.15% | = | 100 | × | 34,231) | ÷ | 161,857) |
| Dec 31, 2018 | 19.24% | = | 100 | × | 26,321) | ÷ | 136,819) |
| Dec 31, 2017 | 23.59% | = | 100 | × | 26,146) | ÷ | 110,855) |
| Dec 31, 2016 | 26.27% | = | 100 | × | 23,716) | ÷ | 90,272) |
| Dec 31, 2015 | 25.82% | = | 100 | × | 19,360) | ÷ | 74,989) |
| Dec 31, 2014 | 24.99% | = | 100 | × | 16,496) | ÷ | 66,001) |
| Dec 31, 2013 | 23.34% | = | 100 | × | 13,966) | ÷ | 59,825) |
| Dec 31, 2012 | 25.43% | = | 100 | × | 12,760) | ÷ | 50,175) |
| Dec 31, 2011 | 30.98% | = | 100 | × | 11,742) | ÷ | 37,905) |
| Dec 31, 2010 | 35.40% | = | 100 | × | 10,381) | ÷ | 29,321) |
| Dec 31, 2009 | 35.15% | = | 100 | × | 8,312) | ÷ | 23,651) |
| Dec 31, 2008 | 30.43% | = | 100 | × | 6,632) | ÷ | 21,796) |
| Dec 31, 2007 | 30.64% | = | 100 | × | 5,084) | ÷ | 16,594) |
| Dec 31, 2006 | 33.48% | = | 100 | × | 3,550) | ÷ | 10,605) |
| Dec 31, 2005 | 32.86% | = | 100 | × | 2,017) | ÷ | 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
- Revenues
- Revenues exhibited a consistent upward trajectory over the period analyzed. Starting from 6,139 million USD in 2005, the revenues grew significantly year over year, reaching 350,018 million USD by 2024. This steady increase reflects sustained growth throughout the nearly two-decade span, with occasional acceleration in later years, particularly from 2016 onward.
- Income from Operations
- Income from operations also increased significantly, rising from 2,017 million USD in 2005 to 112,390 million USD in 2024. While this growth mirrors the trend in revenues, it is notable that income from operations grew at a generally strong pace but experienced some fluctuations, especially between 2021 and 2024, where the income decreased slightly in 2022 before rising again in subsequent years. Overall, operational income expansion highlights improving operational efficiency and profitability aligned with revenue growth.
- Operating Profit Margin
- The operating profit margin demonstrated variability across the years. Initially, margins were relatively high, above 30%, but declined gradually from 2008 through 2018, reaching as low as approximately 19.24% in 2018. After 2018, margins began to recover, reaching above 32% by 2024. The margin fluctuations suggest changes in cost management, pricing strategies, or possibly increased investment in growth and innovation during the lower-margin periods. The rebound in margin towards the end of the period may indicate improved operational leverage or cost efficiency.
- Overall Analysis
- The company has consistently expanded its revenue base and improved operating income over nearly two decades, signifying strong business growth. Despite fluctuations in operating margins, the ability to maintain and eventually increase profitability margins indicates resilience and effective management. The data implies that while the company may have faced periods of margin pressure, possibly due to increased expenses or competitive challenges, it successfully adapted to restore operational efficiency and profitability.
Comparison to Competitors
Alphabet Inc., operating profit margin, long-term trends, comparison to competitors
| Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Take-Two Interactive Software Inc. | |
|---|---|---|---|---|---|
| Dec 31, 2024 | 32.11% | 18.83% | 42.18% | 26.71% | -67.12% |
| Dec 31, 2023 | 27.42% | 19.18% | 34.66% | 20.62% | -21.78% |
| Dec 31, 2022 | 26.46% | 11.56% | 24.82% | 17.82% | 13.51% |
| Dec 31, 2021 | 30.55% | 17.89% | 39.65% | 20.86% | 18.66% |
| Dec 31, 2020 | 22.59% | 16.89% | 38.01% | 18.34% | 13.77% |
| Dec 31, 2019 | 21.15% | 19.39% | 33.93% | 12.92% | 7.75% |
| Dec 31, 2018 | 19.24% | 20.11% | 44.62% | 10.16% | 7.56% |
| Dec 31, 2017 | 23.59% | 21.28% | 49.70% | 7.17% | 5.13% |
| Dec 31, 2016 | 26.27% | 20.97% | 44.96% | 4.30% | -0.77% |
| Dec 31, 2015 | 25.82% | 21.47% | 34.72% | 4.51% | -23.87% |
| Dec 31, 2014 | 24.99% | 21.67% | 40.06% | 7.31% | 17.67% |
| Dec 31, 2013 | 23.34% | 20.98% | 35.62% | 5.22% | 0.43% |
| Dec 31, 2012 | 25.43% | 19.46% | 10.57% | 1.39% | -10.20% |
| Dec 31, 2011 | 30.98% | 19.20% | — | 11.74% | 6.79% |
| Dec 31, 2010 | 35.40% | 21.03% | — | 13.12% | -9.98% |
| Dec 31, 2009 | 35.15% | 20.18% | — | 11.49% | -13.45% |
| Dec 31, 2008 | 30.43% | 19.65% | — | 8.90% | 7.54% |
| Dec 31, 2007 | 30.64% | 18.05% | — | 7.56% | -12.84% |
| Dec 31, 2006 | 33.48% | 18.50% | — | 6.46% | -18.03% |
| Dec 31, 2005 | 32.86% | 16.58% | — | 0.44% | 3.32% |
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).