Stock Analysis on Net
Stock Analysis on Net

Alphabet Inc. (NASDAQ:GOOG)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Alphabet Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Activity Ratio
Total Asset Turnover
Reported 0.76 0.77 0.72 0.57 0.59
Adjusted 0.79 0.79 0.72 0.57 0.59
Liquidity Ratio
Current Ratio
Reported 2.10 2.38 2.93 3.07 3.37
Adjusted 2.22 2.53 3.10 3.22 3.54
Solvency Ratios
Debt to Equity
Reported 0.05 0.06 0.06 0.07 0.02
Adjusted 0.11 0.12 0.11 0.12 0.08
Debt to Capital
Reported 0.05 0.06 0.06 0.06 0.02
Adjusted 0.10 0.10 0.10 0.11 0.07
Financial Leverage
Reported 1.42 1.43 1.43 1.44 1.37
Adjusted 1.41 1.41 1.38 1.40 1.34
Profitability Ratios
Net Profit Margin
Reported 24.01% 21.20% 29.51% 22.06% 21.22%
Adjusted 22.70% 16.47% 29.49% 24.41% 22.05%
Return on Equity (ROE)
Reported 26.04% 23.41% 30.22% 18.09% 17.05%
Adjusted 25.18% 18.19% 29.32% 19.55% 17.38%
Return on Assets (ROA)
Reported 18.34% 16.42% 21.16% 12.60% 12.45%
Adjusted 17.88% 12.94% 21.26% 14.01% 12.94%

Based on: 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Alphabet Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Alphabet Inc. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Alphabet Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Alphabet Inc. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Alphabet Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Alphabet Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Alphabet Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Alphabet Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Alphabet Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Revenues 307,394 282,836 257,637 182,527 161,857
Total assets 402,392 365,264 359,268 319,616 275,909
Activity Ratio
Total asset turnover1 0.76 0.77 0.72 0.57 0.59
Adjusted
Selected Financial Data (US$ in millions)
Adjusted revenues2 307,935 283,520 258,436 183,285 161,943
Adjusted total assets3 390,994 360,757 358,534 319,321 275,941
Activity Ratio
Adjusted total asset turnover4 0.79 0.79 0.72 0.57 0.59

Based on: 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).

1 2023 Calculation
Total asset turnover = Revenues ÷ Total assets
= 307,394 ÷ 402,392 = 0.76

2 Adjusted revenues. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 307,935 ÷ 390,994 = 0.79

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Alphabet Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Current assets 171,530 164,795 188,143 174,296 152,578
Current liabilities 81,814 69,300 64,254 56,834 45,221
Liquidity Ratio
Current ratio1 2.10 2.38 2.93 3.07 3.37
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 172,301 165,549 188,693 175,085 153,331
Adjusted current liabilities3 77,677 65,392 60,966 54,291 43,313
Liquidity Ratio
Adjusted current ratio4 2.22 2.53 3.10 3.22 3.54

Based on: 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).

1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 171,530 ÷ 81,814 = 2.10

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2023 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 172,301 ÷ 77,677 = 2.22

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Alphabet Inc. adjusted current ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 14,616 14,999 14,930 15,032 4,669
Stockholders’ equity 283,379 256,144 251,635 222,544 201,442
Solvency Ratio
Debt to equity1 0.05 0.06 0.06 0.07 0.02
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 29,867 29,977 28,508 27,872 16,082
Adjusted stockholders’ equity3 277,591 256,658 259,981 228,834 205,441
Solvency Ratio
Adjusted debt to equity4 0.11 0.12 0.11 0.12 0.08

Based on: 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 14,616 ÷ 283,379 = 0.05

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 29,867 ÷ 277,591 = 0.11

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Alphabet Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total debt 14,616 14,999 14,930 15,032 4,669
Total capital 297,995 271,143 266,565 237,576 206,111
Solvency Ratio
Debt to capital1 0.05 0.06 0.06 0.06 0.02
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 29,867 29,977 28,508 27,872 16,082
Adjusted total capital3 307,458 286,635 288,489 256,706 221,523
Solvency Ratio
Adjusted debt to capital4 0.10 0.10 0.10 0.11 0.07

Based on: 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,616 ÷ 297,995 = 0.05

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 29,867 ÷ 307,458 = 0.10

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Alphabet Inc. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Total assets 402,392 365,264 359,268 319,616 275,909
Stockholders’ equity 283,379 256,144 251,635 222,544 201,442
Solvency Ratio
Financial leverage1 1.42 1.43 1.43 1.44 1.37
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 390,994 360,757 358,534 319,321 275,941
Adjusted stockholders’ equity3 277,591 256,658 259,981 228,834 205,441
Solvency Ratio
Adjusted financial leverage4 1.41 1.41 1.38 1.40 1.34

Based on: 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 402,392 ÷ 283,379 = 1.42

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 390,994 ÷ 277,591 = 1.41

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Alphabet Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 73,795 59,972 76,033 40,269 34,343
Revenues 307,394 282,836 257,637 182,527 161,857
Profitability Ratio
Net profit margin1 24.01% 21.20% 29.51% 22.06% 21.22%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 69,902 46,682 76,220 44,743 35,702
Adjusted revenues3 307,935 283,520 258,436 183,285 161,943
Profitability Ratio
Adjusted net profit margin4 22.70% 16.47% 29.49% 24.41% 22.05%

Based on: 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).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 73,795 ÷ 307,394 = 24.01%

2 Adjusted net income. See details »

3 Adjusted revenues. See details »

4 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenues
= 100 × 69,902 ÷ 307,935 = 22.70%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Alphabet Inc. adjusted net profit margin ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 73,795 59,972 76,033 40,269 34,343
Stockholders’ equity 283,379 256,144 251,635 222,544 201,442
Profitability Ratio
ROE1 26.04% 23.41% 30.22% 18.09% 17.05%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 69,902 46,682 76,220 44,743 35,702
Adjusted stockholders’ equity3 277,591 256,658 259,981 228,834 205,441
Profitability Ratio
Adjusted ROE4 25.18% 18.19% 29.32% 19.55% 17.38%

Based on: 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).

1 2023 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 73,795 ÷ 283,379 = 26.04%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 69,902 ÷ 277,591 = 25.18%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Alphabet Inc. adjusted ROE deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Reported
Selected Financial Data (US$ in millions)
Net income 73,795 59,972 76,033 40,269 34,343
Total assets 402,392 365,264 359,268 319,616 275,909
Profitability Ratio
ROA1 18.34% 16.42% 21.16% 12.60% 12.45%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 69,902 46,682 76,220 44,743 35,702
Adjusted total assets3 390,994 360,757 358,534 319,321 275,941
Profitability Ratio
Adjusted ROA4 17.88% 12.94% 21.26% 14.01% 12.94%

Based on: 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).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 73,795 ÷ 402,392 = 18.34%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 69,902 ÷ 390,994 = 17.88%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Alphabet Inc. adjusted ROA deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.