Return on Equity (ROE)
since 2005
Calculation
Alphabet Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 30.80% | = | 100 | × | 100,118) | ÷ | 325,084) |
| Dec 31, 2023 | 26.04% | = | 100 | × | 73,795) | ÷ | 283,379) |
| Dec 31, 2022 | 23.41% | = | 100 | × | 59,972) | ÷ | 256,144) |
| Dec 31, 2021 | 30.22% | = | 100 | × | 76,033) | ÷ | 251,635) |
| Dec 31, 2020 | 18.09% | = | 100 | × | 40,269) | ÷ | 222,544) |
| Dec 31, 2019 | 17.05% | = | 100 | × | 34,343) | ÷ | 201,442) |
| Dec 31, 2018 | 17.30% | = | 100 | × | 30,736) | ÷ | 177,628) |
| Dec 31, 2017 | 8.30% | = | 100 | × | 12,662) | ÷ | 152,502) |
| Dec 31, 2016 | 14.01% | = | 100 | × | 19,478) | ÷ | 139,036) |
| Dec 31, 2015 | 13.59% | = | 100 | × | 16,348) | ÷ | 120,331) |
| Dec 31, 2014 | 13.82% | = | 100 | × | 14,444) | ÷ | 104,500) |
| Dec 31, 2013 | 14.80% | = | 100 | × | 12,920) | ÷ | 87,309) |
| Dec 31, 2012 | 14.97% | = | 100 | × | 10,737) | ÷ | 71,715) |
| Dec 31, 2011 | 16.75% | = | 100 | × | 9,737) | ÷ | 58,145) |
| Dec 31, 2010 | 18.39% | = | 100 | × | 8,505) | ÷ | 46,241) |
| Dec 31, 2009 | 18.11% | = | 100 | × | 6,520) | ÷ | 36,004) |
| Dec 31, 2008 | 14.97% | = | 100 | × | 4,227) | ÷ | 28,239) |
| Dec 31, 2007 | 18.53% | = | 100 | × | 4,204) | ÷ | 22,690) |
| Dec 31, 2006 | 18.06% | = | 100 | × | 3,077) | ÷ | 17,040) |
| Dec 31, 2005 | 15.56% | = | 100 | × | 1,465) | ÷ | 9,419) |
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 demonstrates a general upward trend from 2005 through 2024, increasing from $1,465 million in 2005 to $100,118 million in 2024. Notable growth periods include a steady rise from 2005 to 2016, followed by a substantial peak in 2018 at $30,736 million after a drop from the prior year. After some fluctuations, particularly in 2021 and 2022 where net income fell from $76,033 million to $59,972 million, the figures rebounded significantly in the last two years, reaching the highest value in 2024.
- Stockholders’ Equity
- Stockholders’ equity consistently increased throughout the period, expanding from $9,419 million in 2005 to $325,084 million in 2024. The growth is steady and continuous, reflecting accumulation of retained earnings and other equity components. There are no periods of decline, indicating strong capitalization and reinvestment capacity over the years.
- Return on Equity (ROE)
- The ROE shows variability across the years while remaining generally robust. Initial values in the mid-teens percentage range were observed from 2005 to 2017, with occasional dips, such as the low of 8.3% in 2017. After this dip, ROE surged again, hitting a peak of 30.22% in 2021, then moderating slightly but maintaining high levels of 26.04% in 2023 and 30.8% in 2024. This pattern suggests variable profitability relative to equity, with recent years indicating exceptional returns.
- Overall Analysis
- The data portrays a company with strong growth in net income and equity over two decades, supported by largely favorable ROE metrics. Despite some volatility in annual net income and ROE, the long-term trajectory is positively oriented. The high ROE in recent years indicates effective use of equity capital to generate profits, enhancing shareholder value. The steady increase in stockholders’ equity suggests robust financial health and sustainable growth, while fluctuations in net income may reflect external market conditions or internal strategic decisions impacting yearly profitability.
Comparison to Competitors
Alphabet Inc., ROE, 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 | 30.80% | 18.92% | 34.14% | 35.21% | -66.06% | 4.94% |
| Dec 31, 2023 | 26.04% | 18.61% | 25.53% | 26.27% | -12.44% | 2.37% |
| Dec 31, 2022 | 23.41% | 6.63% | 18.45% | 21.62% | 10.97% | 3.31% |
| Dec 31, 2021 | 30.22% | 14.73% | 31.53% | 32.28% | 17.67% | 2.25% |
| Dec 31, 2020 | 18.09% | 11.66% | 22.72% | 24.96% | 15.93% | -3.43% |
| Dec 31, 2019 | 17.05% | 15.78% | 18.29% | 24.62% | 16.36% | 12.44% |
| Dec 31, 2018 | 17.30% | 16.38% | 26.28% | 23.12% | 11.65% | 25.83% |
| Dec 31, 2017 | 8.30% | 33.11% | 21.43% | 15.60% | 6.71% | 21.74% |
| Dec 31, 2016 | 14.01% | 16.12% | 17.26% | 6.97% | -1.43% | 21.71% |
| Dec 31, 2015 | 13.59% | 15.62% | 8.34% | 5.52% | -49.63% | 18.83% |
| Dec 31, 2014 | 13.82% | 15.90% | 8.14% | 14.36% | 45.10% | 16.68% |
| Dec 31, 2013 | 14.80% | 13.45% | 9.70% | 8.43% | -5.02% | 13.51% |
| Dec 31, 2012 | 14.97% | 12.57% | 0.45% | 2.30% | -18.27% | 14.29% |
| Dec 31, 2011 | 16.75% | 8.80% | — | 35.18% | 7.88% | 12.86% |
| Dec 31, 2010 | 18.39% | 8.20% | — | 55.44% | -23.62% | 10.56% |
| Dec 31, 2009 | 18.11% | 8.52% | — | 58.18% | -27.25% | 9.80% |
| Dec 31, 2008 | 14.97% | 6.30% | — | 23.92% | 15.79% | 13.70% |
| Dec 31, 2007 | 18.53% | 6.26% | — | 15.54% | -29.38% | 15.24% |
| Dec 31, 2006 | 18.06% | 6.15% | — | 11.85% | -33.59% | 10.60% |
| Dec 31, 2005 | 15.56% | 2.31% | — | 18.58% | 5.38% | 9.66% |
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., ROE, long-term trends, comparison to sector (media & entertainment)
| Alphabet Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2024 | 30.80% | 26.04% |
| Dec 31, 2023 | 26.04% | 20.82% |
| Dec 31, 2022 | 23.41% | 16.59% |
| Dec 31, 2021 | 30.22% | 23.65% |
| Dec 31, 2020 | 18.09% | 14.91% |
| Dec 31, 2019 | 17.05% | 16.36% |
| Dec 31, 2018 | 17.30% | 20.20% |
| Dec 31, 2017 | 8.30% | 17.85% |
| Dec 31, 2016 | 14.01% | 16.06% |
| Dec 31, 2015 | 13.59% | 13.79% |
| Dec 31, 2014 | 13.82% | 14.07% |
| Dec 31, 2013 | 14.80% | 13.67% |
| Dec 31, 2012 | 14.97% | 12.98% |
| Dec 31, 2011 | 16.75% | 13.17% |
| Dec 31, 2010 | 18.39% | 12.52% |
| Dec 31, 2009 | 18.11% | 11.88% |
| Dec 31, 2008 | 14.97% | 11.16% |
| Dec 31, 2007 | 18.53% | 11.92% |
| Dec 31, 2006 | 18.06% | 9.72% |
| Dec 31, 2005 | 15.56% | 6.52% |
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., ROE, long-term trends, comparison to industry (communication services)
| Alphabet Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2024 | 30.80% | 23.08% |
| Dec 31, 2023 | 26.04% | 18.63% |
| Dec 31, 2022 | 23.41% | 13.31% |
| Dec 31, 2021 | 30.22% | 20.33% |
| Dec 31, 2020 | 18.09% | 11.51% |
| Dec 31, 2019 | 17.05% | 15.27% |
| Dec 31, 2018 | 17.30% | 17.88% |
| Dec 31, 2017 | 8.30% | 22.82% |
| Dec 31, 2016 | 14.01% | 16.33% |
| Dec 31, 2015 | 13.59% | 16.29% |
| Dec 31, 2014 | 13.82% | 14.07% |
| Dec 31, 2013 | 14.80% | 16.60% |
| Dec 31, 2012 | 14.97% | 10.26% |
| Dec 31, 2011 | 16.75% | 8.87% |
| Dec 31, 2010 | 18.39% | 13.81% |
| Dec 31, 2009 | 18.11% | 11.54% |
| Dec 31, 2008 | 14.97% | 12.78% |
| Dec 31, 2007 | 18.53% | 11.04% |
| Dec 31, 2006 | 18.06% | 8.78% |
| Dec 31, 2005 | 15.56% | 10.04% |
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).