Alphabet Inc. (NASDAQ:GOOG)

Total Asset Turnover

The reported total asset turnover shows an overall increasing trend from 0.57 in 2020 to 0.78 in 2024, indicating improved efficiency in utilizing assets to generate revenue. The adjusted total asset turnover is slightly higher than the reported figures from 2022 onwards, reaching 0.81 by 2024, which suggests adjustments have enhanced the perception of asset utilization efficiency.

Current Ratio

Both reported and adjusted current ratios exhibit a declining trend over the period. The reported current ratio decreases from 3.07 in 2020 to 1.84 in 2024, signaling a reduced short-term liquidity buffer. The adjusted current ratio, while slightly higher than reported, also declines from 3.22 to 1.96 over five years, which may suggest a diminishing ability to cover short-term liabilities with current assets.

Debt to Equity Ratio

Reported debt to equity remains low and relatively stable, decreasing slightly from 0.07 in 2020 to 0.05 in 2024, reflecting modest reliance on debt financing relative to equity. Adjusted debt to equity ratios are generally higher than reported but also show a slight downward trend from 0.12 to 0.10, reinforcing a conservative capital structure with minimal debt increase.

Debt to Capital Ratio

This ratio remains fairly stable with a small decrease in both reported and adjusted figures. Reported values hold at 0.06 in the early years before dipping to 0.05 in 2024. Adjusted ratios show a slight reduction from 0.11 to 0.09. This stability suggests consistent use of debt relative to total capital with a modest tendency toward deleveraging.

Financial Leverage

Reported financial leverage ratios remain stable around 1.44 to 1.39, indicating a steady relationship between total assets and equity. Adjusted financial leverage follows a similar pattern with a minor fluctuation, ending at 1.38. This consistency points to a stable capital structure without significant changes in leverage risk.

Net Profit Margin

There is volatility in net profit margins across the period. The reported margin peaks at 29.51% in 2021, then declines in 2022 to 21.20%, and recovers to 28.60% in 2024. Adjusted margins follow similar fluctuations but dip more significantly in 2022 to 16.47%. Overall, margins remain strong with recovery in later years indicating improved profitability after a temporary decline.

Return on Equity (ROE)

The reported ROE shows an upward trend from 18.09% in 2020 to 30.80% in 2024, except for a decrease in 2022. Adjusted ROE trends similarly but with more pronounced dips in 2022 and a recovery by 2024. This suggests improved effectiveness in generating shareholder returns over time, with temporary challenges in the mid-period.

Return on Assets (ROA)

Reported ROA increases significantly from 12.60% in 2020 to 22.24% in 2024, with a noticeable dip in 2022 followed by recovery. Adjusted ROA reflects similar patterns but with lower values in 2022, highlighting the impact of adjustments on asset profitability measurements. The upward trend indicates better asset utilization to generate profits.

The financial data over the presented periods reveal a consistent growth pattern in both revenue and asset-related metrics. Revenues have increased steadily from 182,527 million US dollars in 2020 to 350,018 million US dollars in 2024. This upward trend reflects sustained growth in the company's sales or service income over the five-year period.

Total assets have also shown a continuous increase, rising from 319,616 million US dollars in 2020 to 450,256 million US dollars in 2024. This indicates ongoing asset accumulation which may imply expansion, investment, or capital expenditure activities contributing to the company's asset base enlargement.

The reported total asset turnover ratio, which measures the efficiency of asset utilization in generating revenues, improved from 0.57 in 2020 to 0.78 in 2024. This suggests enhanced effectiveness in leveraging assets to produce revenue, with a particularly notable increase between 2020 and 2022, followed by stabilization around the 0.76 to 0.78 range in the later years.

The adjusted figures for revenues and total assets also show similar trends. Adjusted revenues increased from 183,285 million US dollars in 2020 to 350,970 million US dollars in 2024, closely mirroring the growth pattern of reported revenues. Adjusted total assets, starting at 319,321 million US dollars in 2020, rose to 433,955 million US dollars in 2024, indicating that the adjustments did not materially alter the asset growth trajectory.

The adjusted total asset turnover ratio increased from 0.57 in 2020 to 0.81 in 2024, displaying a slightly stronger upward trend relative to the reported ratio. The adjusted ratio remained stable at about 0.79 from 2022 to 2023 before further improvement to 0.81 in 2024, reinforcing the observation of enhanced asset efficiency.

Revenue Growth

Consistent and significant increase over the five-year span, with an approximate doubling from 2020 to 2024.

Asset Growth

Steady increase in total assets, implying investment and expansion activities supporting business growth.

Asset Turnover Efficiency

Marked improvement in both reported and adjusted asset turnover ratios, indicating better asset utilization to generate revenue.

Adjusted Figures vs. Reported Figures

Adjusted revenues and assets closely track the reported values, with adjusted turnover ratios slightly higher, suggesting adjustments that marginally improve the view of operational efficiency.

Overall, the data suggests that the company has been expanding its operations, increasing its asset base while concurrently improving its ability to efficiently utilize these assets to generate higher revenue streams. The asset turnover ratios' upward trend is positive as it reflects enhanced operational performance despite the growth in asset levels.

The financial data over the five-year period reveals several notable trends in liquidity and working capital management.

Current assets

There is an overall decline in current assets from US$174,296 million in 2020 to US$163,711 million in 2024. Despite a slight increase between 2022 and 2023, the trend shows a diminishing pool of current assets over time.

Current liabilities

Current liabilities have steadily increased from US$56,834 million in 2020 to US$89,122 million in 2024. This consistent rise indicates growing short-term obligations.

Reported current ratio

The reported current ratio exhibits a clear downward trend, declining from 3.07 in 2020 to 1.84 in 2024. This reduction suggests a weakening liquidity position, signaling a lower margin of safety in meeting short-term liabilities with current assets.

Adjusted current assets

The pattern for adjusted current assets mirrors that of reported current assets, showing a gradual decline from US$175,085 million in 2020 to US$164,590 million in 2024. Adjustments do not significantly change the observed downward trend.

Adjusted current liabilities

Adjusted current liabilities also increase steadily from US$54,291 million in 2020 to US$84,086 million in 2024, paralleling the trend seen with reported current liabilities, reflecting higher levels of short-term commitments.

Adjusted current ratio

The adjusted current ratio declines from 3.22 in 2020 to 1.96 in 2024, reinforcing the observation of deteriorating short-term liquidity, although remaining marginally higher than the reported current ratio in each year.

In summary, the data highlights a consistent decrease in liquidity ratios driven by declining current assets and increasing current liabilities. The reduced current ratios, both reported and adjusted, suggest a tightening financial position over the analyzed period, which may warrant closer attention to working capital management strategies.

Total Debt

The total debt remained relatively stable from 2020 to 2023, with values fluctuating slightly around 15,000 million US dollars. However, there was an increase observed in 2024, where total debt rose to 15,859 million US dollars, indicating a modest rise in borrowing or obligations in the most recent period.

Stockholders’ Equity

Stockholders’ equity demonstrated a consistent upward trend over the five-year period. Starting at 222,544 million US dollars in 2020, it increased substantially each year to reach 325,084 million US dollars by the end of 2024. This increase suggests significant growth in the company's net assets and retained earnings over time.

Reported Debt to Equity Ratio

The reported debt to equity ratio showed a gradual decrease from 0.07 in 2020 to 0.05 in both 2023 and 2024. This decreasing ratio implies an improving capital structure with relatively lower reliance on debt financing compared to equity.

Adjusted Total Debt

The adjusted total debt values are consistently higher than the reported total debt, reflecting additional considerations beyond the standard debt figure. Adjusted debt rose from 27,872 million US dollars in 2020 to 30,437 million US dollars in 2024, with minor fluctuations but an overall moderate upward trend.

Adjusted Stockholders’ Equity

The adjusted stockholders’ equity fluctuated slightly from 228,834 million US dollars in 2020, peaking at 259,981 million US dollars in 2021, then slightly decreasing in 2022 before increasing to 315,503 million US dollars in 2024. This pattern suggests some volatility but an overall positive trend, indicating adjusted measures of equity reflecting growth during the period.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio remained relatively stable, fluctuating between 0.10 and 0.12 throughout the observed years. The ratio slightly decreased to 0.10 by 2024, indicating a modest improvement in the capital structure when considering adjusted figures.

The financial data over the five-year period reveals several key trends pertaining to debt levels, capital structure, and leverage ratios.

Total Debt and Total Capital

Total debt remained relatively stable from 2020 through 2023, fluctuating narrowly between approximately 14,600 million and 15,000 million US dollars. However, in the final year, 2024, total debt increased notably to 15,859 million US dollars. In contrast, total capital experienced a consistent upward trajectory throughout the period. It rose from about 237,576 million US dollars in 2020 to 340,943 million US dollars in 2024, reflecting a substantial expansion in capital base.

Reported Debt to Capital Ratio

The reported debt to capital ratio stayed low and stable from 2020 to 2022 at 0.06, then decreased slightly in 2023 and 2024, reaching 0.05. This pattern indicates that despite the increase in total debt in 2024, capital growth outpaced debt growth, maintaining a conservative leverage profile from the perspective of reported debt and capital figures.

Adjusted Total Debt and Adjusted Total Capital

Adjusted total debt showed a gradual increase over the five years, rising from about 27,872 million US dollars in 2020 to 30,437 million in 2024. Adjusted total capital followed a similar growth trend, increasing from roughly 256,706 million US dollars in 2020 to 345,940 million in 2024. Both adjusted debt and capital figures suggest an upward revaluation or inclusion of additional debt components beyond the reported figures, resulting in higher absolute levels.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio decreased steadily from 0.11 in 2020 to 0.09 in 2024. This indicates that the growth in adjusted capital surpassed the growth in adjusted debt over the period. The declining ratio suggests improving capital structure quality and a reduction in leverage risk from the perspective of adjusted financial data.

In summary, the company exhibited a pattern of stable or moderately increasing debt levels alongside robust capital growth, resulting in declining leverage ratios both on a reported and adjusted basis. The sustained low reported debt to capital ratios and the downward trend in adjusted debt to capital imply a cautious approach to leverage and strengthened capital position over the five-year span. The notable increase in total debt in 2024, while significant, was offset by more substantial capital expansion, preserving the overall conservative leverage stance.

The financial data reveals a clear upward trajectory in the total assets of the company over the five-year period. Total assets increased steadily from US$319,616 million in 2020 to US$450,256 million in 2024, reflecting consistent asset growth.

Similarly, stockholders’ equity has shown a continuous increase from US$222,544 million in 2020 to US$325,084 million in 2024. This indicates a strengthening equity base, which complements the increase in total assets and suggests enhanced capitalization.

The reported financial leverage ratio remained relatively stable, with a slight decline observed over the period. Starting at 1.44 in 2020, the ratio gradually decreased to 1.39 by 2024. This trend suggests a modest reduction in reliance on debt financing relative to equity.

When examining the adjusted figures, adjusted total assets also display growth, rising from US$319,321 million in 2020 to US$433,955 million in 2024. Adjusted stockholders’ equity follows a similar pattern, increasing from US$228,834 million to US$315,503 million over the same timeframe.

The adjusted financial leverage ratio fluctuates slightly but remains close to the reported leverage, starting at 1.40 in 2020, peaking at 1.41 in 2022 and 2023, and reducing back to 1.38 in 2024. This stability in adjusted leverage reaffirms the company’s consistent capital structure management.

Asset Growth

Total assets grew by approximately 40.8% from 2020 to 2024, illustrating sustained expansion in asset holdings.

Equity Growth

Stockholders’ equity increased by about 46.1% during the same period, indicating improved equity financing and potential retained earnings accumulation.

Leverage Trends

Both reported and adjusted financial leverage ratios show minor declines, implying cautious leverage management and relatively stable debt levels compared to equity.

Adjusted vs. Reported Values

The adjusted figures closely track the reported values with slight variations, maintaining consistent growth patterns and leverage ratios, which suggests the adjustments do not significantly alter the overall financial position assessment.

Overall, the data indicates a healthy and growing financial profile characterized by increasing asset and equity bases with stable leverage ratios, reflecting prudent financial management over the analyzed timeframe.

Net Income and Revenue Trends

Over the five-year period, net income exhibits a generally upward trend with some fluctuations. It nearly doubled from 40,269 million US dollars in 2020 to 76,033 million in 2021, followed by a decline in 2022 to 59,972 million. Subsequently, it rises again to 73,795 million in 2023 and reaches a peak of 100,118 million in 2024. Revenues steadily increase every year from 182,527 million US dollars in 2020 to 350,018 million in 2024, indicating sustained top-line growth.

Reported Net Profit Margin Analysis

The reported net profit margin displays variability with an initial increase from 22.06% in 2020 to 29.51% in 2021. Following this peak, the margin declines sharply to 21.2% in 2022 but then recovers to 24.01% in 2023 and further improves to 28.6% in 2024. This pattern suggests some volatility in profitability efficiency relative to revenue during this period.

Adjusted Net Income and Adjusted Revenues

Adjusted net income mirrors the reported net income trend but with more pronounced fluctuations. It increases from 44,743 million US dollars in 2020 to 76,220 million in 2021, falls to 46,682 million in 2022, then climbs to 69,825 million in 2023, and attains 95,524 million in 2024. Adjusted revenues also show a consistent upward trend from 183,285 million to 350,970 million US dollars over the five years, closely aligning with the pattern observed in reported revenues.

Adjusted Net Profit Margin Dynamics

The adjusted net profit margin reveals a different pattern from the reported margin, with a notable drop in 2022 to 16.47% from 29.49% in 2021. Before 2022, it rises gradually from 24.41% in 2020, then recovers to 22.68% in 2023 and improves further to 27.22% in 2024. This margin underscores a more substantial dip in profitability on an adjusted basis in 2022, followed by a recovery phase.

Overall Observations

The data indicates strong revenue growth throughout the analyzed period, accompanied by variable profitability levels. The year 2022 stands out as an atypical period with decreased net income and significantly compressed profit margins, especially in adjusted terms. Recovery and improvement in profit margins occur in the subsequent years, suggesting operational or market factors impacting profitability temporarily in 2022. The distinction between reported and adjusted figures highlights differences in accounting or one-time items affecting net income and margins.

Net Income

Net income has shown overall growth throughout the observed periods, increasing from 40,269 million US dollars in 2020 to 100,118 million US dollars in 2024. There was a notable peak in 2021 at 76,033 million US dollars, followed by a decline in 2022 to 59,972 million US dollars, and then a recovery in the subsequent years up to 2024.

Stockholders’ Equity

Stockholders’ equity demonstrated a steady upward trend from 222,544 million US dollars in 2020 to 325,084 million US dollars in 2024. The growth in equity appears consistent year-over-year, indicating strengthening financial stability and value accumulation.

Reported Return on Equity (ROE)

The reported ROE exhibited variability but generally maintained an upward trajectory. Starting at 18.09% in 2020, it peaked at 30.22% in 2021, followed by a decline to 23.41% in 2022, and then an increase again to 30.8% in 2024. This fluctuation reflects variations in profitability relative to equity, with the 2024 figure representing the highest return over the period.

Adjusted Net Income

Adjusted net income followed a pattern similar to that of reported net income, with a peak in 2021 at 76,220 million US dollars and a subsequent decline in 2022 to 46,682 million US dollars. It then rose steadily reaching 95,524 million US dollars by 2024. The adjusted figures are generally close to the reported net income, with some distinctions in levels.

Adjusted Stockholders’ Equity

Adjusted stockholders' equity showed consistent growth, though the increases are somewhat less pronounced than the reported equity figures. Starting at 228,834 million US dollars in 2020 and rising to 315,503 million US dollars in 2024, the trend supports a solid foundation for the company's financial resources.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE trends experienced fluctuations similar to the reported ROE. It started at 19.55% in 2020, peaked at 29.32% in 2021, decreased significantly to 18.19% in 2022, then recovered to 30.28% in 2024. This pattern indicates variability in the company's efficiency in generating earnings from its equity base after adjustments.

The financial data reveals several notable trends over the five-year period.

Net Income

Net income experienced a significant increase from 40,269 million US dollars in 2020 to 76,033 million in 2021. This was followed by a decline to 59,972 million in 2022, before rising again to 73,795 million in 2023 and reaching a peak of 100,118 million in 2024. The pattern indicates strong profitability with some volatility in the intermediate years.

Total Assets

Total assets steadily increased throughout the period, starting at 319,616 million US dollars in 2020 and growing to 450,256 million by 2024. This represents a continuous expansion in asset base, with the largest increments observed between 2022 and 2024, suggesting ongoing investment or acquisition activities.

Reported Return on Assets (ROA)

The reported ROA shows a rising trend from 12.6% in 2020 to 21.16% in 2021. A decline to 16.42% in 2022 is evident, followed by a recovery to 18.34% in 2023 and an increase to 22.24% in 2024. This trend closely mirrors the net income pattern and reflects fluctuating efficiency in asset utilization.

Adjusted Net Income

Adjusted net income rose markedly from 44,743 million in 2020 to 76,220 million in 2021, then decreased to 46,682 million in 2022, after which it increased again to 69,825 million in 2023 and to 95,524 million in 2024. The adjusted figures highlight more pronounced volatility compared to reported net income, especially the sharp drop in 2022.

Adjusted Total Assets

Adjusted total assets grew consistently from 319,321 million in 2020 to 433,955 million in 2024. The growth trend is steady, albeit with a slightly lower increase between 2021 and 2022, indicating some adjustment in asset values or portfolio composition.

Adjusted Return on Assets (Adjusted ROA)

Adjusted ROA increased from 14.01% in 2020 to 21.26% in 2021, then dropped sharply to 12.94% in 2022. It rebounded to 17.86% in 2023 and further improved to 22.01% in 2024. The adjusted ROA suggests significant fluctuations in underlying profitability and asset efficiency, particularly in 2022 when it registered the lowest point within the period.

Overall, the data indicates a general growth in both net income and total assets, reflecting an expanding scale of operations. Profitability ratios, both reported and adjusted, exhibit volatility with a notable dip in 2022, followed by a strong recovery in subsequent years. The steady increase in assets combined with improving ROA towards 2024 suggests enhanced operational efficiency and effective use of resources over the longer term despite intermittent short-term fluctuations.