Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.
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Two-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial data reveals several notable trends in the company's performance over the periods observed. Key profitability indicators, namely Return on Assets (ROA) and Return on Equity (ROE), demonstrate an overall positive trajectory with some fluctuations, while the Financial Leverage ratio remains relatively stable with minor variations.
- Return on Assets (ROA)
- The ROA shows a steady increase from 12.6% in early 2020 to a peak above 20% by the end of 2021, indicating improved efficiency in asset utilization over this period. A slight decline is observed throughout 2022, with values decreasing from 20.87% to 16.42%. From 2023 onwards, the ROA gradually recovers, climbing from approximately 15.86% in early 2023 to 23.35% by mid-2025, showing enhanced asset profitability in the latest period.
- Financial Leverage
- The Financial Leverage ratio remains fairly constant throughout the entire timeline, fluctuating narrowly between 1.34 and 1.45. This consistency indicates stable use of debt relative to equity, suggesting a conservative and steady capital structure management without aggressive leveraging.
- Return on Equity (ROE)
- ROE also demonstrates an upward trend, increasing from 18.09% beginning in 2020 to a high of 30.22% by early 2022. A moderate decline occurs during late 2022 and early 2023, dipping to 22.46%. Following this period, ROE steadily rises, reaching over 32% by the middle of 2025. The overall increasing ROE trend reflects growing profitability and efficient equity utilization.
In summary, the company exhibits improving returns on both assets and equity across the periods, with minor setbacks mostly observed in 2022 and early 2023. The stable financial leverage ratio underscores a consistent capital structure approach. These factors collectively suggest enhanced operational efficiency and shareholder value creation over time.
Three-Component Disaggregation of ROE
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
The financial data reveals several notable trends in key performance indicators over the analyzed periods.
- Net Profit Margin
- The net profit margin increased significantly from 22.06% in Q1 2021 to a peak near 29.52% by Q4 2021. Following this peak, a gradual decline occurred through 2022, reaching around 20.58% by Q2 2023. Beginning mid-2023, the margin improved steadily again, surpassing previous highs to reach 31.12% by Q2 2025. This indicates periods of both contraction and expansion in profitability, suggesting effective cost control and revenue management challenges during the mid-period, with substantial recovery and growth in recent quarters.
- Asset Turnover
- Asset turnover exhibited an overall upward trend from 0.57 in Q1 2021 to a high near 0.79 in late 2022. However, this was followed by a slight decrease and stabilization around 0.74 to 0.78 in subsequent quarters through mid-2025. This pattern suggests improving efficiency in asset utilization initially, with a plateau in efficiency gains after late 2022.
- Financial Leverage
- Financial leverage maintained a relatively stable range from 1.34 at the start of 2020, with minor fluctuations around 1.38 to 1.45 across the observed periods. The leverage ratio oscillated slightly but did not indicate significant changes in the company’s capital structure or risk profile during the timeline.
- Return on Equity (ROE)
- ROE showed a strong upward trajectory from 18.09% in Q1 2021, gradually increasing to around 30.22% in Q1 2022. After a moderate decline through 2022 and early 2023, ROE later resumed growth, reaching over 32% by mid-2025. This trend reflects overall improving profitability and efficient equity use, aligned with the trends observed in profit margins and asset turnover.
In summary, the company demonstrated resilience in maintaining and improving profitability and return metrics after a period of contraction. Asset efficiency improved initially but showed signs of stabilization recently, while leverage remained stable, indicating a consistent financial strategy. The interplay of these factors underpins a solid financial performance characterized by strong returns on equity driven by fluctuations in profit margins and operational efficiency.
Two-Component Disaggregation of ROA
Based on: 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31).
- Net Profit Margin
- The net profit margin demonstrates an overall increasing trend from the first recorded period in March 2020 through June 2025. Beginning at 22.06% in March 2020, the margin rose steadily to reach a peak around 29.52% by December 2020. Subsequently, the margin experienced a decline phase through December 2022, reaching a low of approximately 20.58%. After this trough, the margin resumed growth, progressing to 31.12% by June 2025. This pattern indicates periods of both contraction and expansion in profitability relative to revenue, with a strong recovery and improvement noted in the most recent periods.
- Asset Turnover
- The asset turnover ratio shows a consistent upward trajectory from March 2020 through December 2021, moving from 0.57 to a peak near 0.79. Following this peak, the ratio slightly decreased and then stabilized, fluctuating in a narrow range around 0.74 to 0.79 between March 2022 and June 2025. The initial increase suggests improved efficiency in utilizing assets to generate revenue, while the later stabilization implies the company may have reached a steady state in asset utilization efficiency.
- Return on Assets (ROA)
- ROA experienced a notable increase from 12.6% in March 2020 to a peak of approximately 21.16% in March 2021, reflecting enhanced profitability in relation to asset base. After reaching this level, ROA underwent a decline to a low near 15.86% towards June 2023. From this point onward, the ratio showed a resumed upward trend, climbing steadily to 23.35% by March 2025 before slightly moderating to 23.02% by June 2025. This trajectory indicates phases of both improved and weakened asset profit generation capacity, with a significant recovery and strengthening in the later stages of the data.