Stock Analysis on Net

Alphabet Inc. (NASDAQ:GOOG)

$24.99

Return on Assets (ROA)
since 2005

Microsoft Excel

Calculation

Alphabet Inc., ROA, long-term trends, calculation

Microsoft Excel

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


The data reveals a consistent upward trend in net income and total assets over the analyzed period, indicating overall growth. Net income increased from $1,465 million in 2005 to $100,118 million in 2024, illustrating strong profitability expansion with some variability in growth rates. Total assets grew steadily from $10,272 million in 2005 to $450,256 million in 2024, reflecting considerable asset base enlargement likely supporting business operations and growth initiatives.

Return on Assets (ROA) demonstrates fluctuations over time, suggesting variable efficiency in generating profit from assets. ROA started at 14.27% in 2005, peaked around 16.66% in 2006, then declined to a low of 6.42% in 2017 before recovering significantly to reach 22.24% in 2024. This pattern may imply periods of intensified asset acquisition or investment that temporarily lowered returns, followed by improved profitability management or asset utilization efficiency in later years.

Net income
Displays robust growth with an overall increase of almost 68-fold over the period. A notable period of rapid increase is visible around 2018 to 2021, particularly in 2021 where net income jumped to $76,033 million from $40,269 million in 2020. Although there is a decline in 2022, net income rebounds strongly by 2024.
Total assets
Show consistent annual growth emphasizing ongoing investment and scaling efforts. The asset base more than quadruples from 2005 to 2024, indicating expanding operational capacity and possibly acquisitions or increased capital expenditures.
Return on Assets (ROA)
Reflects an initially strong performance with ROA above 14% through 2010, followed by a downward trend reaching a low in 2017, which coincides with a significant rise in total assets. Post-2017, ROA improves markedly, surpassing previous peaks and indicating enhanced profitability relative to asset size.

Overall, the trends suggest a company undergoing significant growth in both profitability and asset scale, with ROA adjustments reflecting phases of investment and subsequent optimization in asset utilization. The substantial increase in net income towards the later years suggests successful leveraging of assets for earnings growth, enhancing shareholder value.


Comparison to Competitors

Alphabet Inc., ROA, long-term trends, comparison to competitors

Microsoft Excel

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)


Comparison to Industry (Communication Services)