Analysis of Geographic Areas
Alphabet Inc. operates in 2 regions: United States and International.
Area Asset Turnover
Alphabet Inc., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 1.23 | 1.33 | 1.44 | 1.47 | 1.23 |
| International | 3.93 | 4.19 | 4.36 | 4.60 | 3.52 |
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).
- United States Asset Turnover
- The asset turnover ratio in the United States showed an upward trend from 1.23 in 2020 to a peak of 1.47 in 2021. However, from 2021 onwards, this ratio gradually declined each year, falling to 1.44 in 2022, then to 1.33 in 2023, and further decreasing to 1.23 by 2024, returning to the initial level observed in 2020. This indicates a diminishing efficiency in using assets to generate revenue in the U.S. market over the last three years following an initial improvement.
- International Asset Turnover
- In contrast, the international asset turnover displayed consistently higher values compared to the U.S. throughout the period. It increased significantly from 3.52 in 2020 to 4.60 in 2021, marking the highest point in the timeline. Subsequently, the ratio experienced a gradual decline over the next three years, moving from 4.36 in 2022 to 4.19 in 2023, and down to 3.93 in 2024. Despite this decline, international asset turnover remained substantially stronger than domestic figures, suggesting a relatively more productive use of assets in international operations, albeit with some reduction in efficiency in recent years.
- Overall Trends and Insights
- Both geographic areas exhibited peak efficiency in 2021, followed by a consistent decline through 2024. The international segment maintained a significantly higher asset turnover ratio relative to the United States, indicating a more effective utilization of assets internationally. The diminishing trend in both regions post-2021 could signal challenges in asset management or shifts in operational dynamics that may require strategic attention to enhance asset productivity going forward.
Area Asset Turnover: United States
Alphabet Inc.; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 170,447) | 146,286) | 134,814) | 117,854) | 85,014) |
| Long-lived assets | 138,993) | 110,053) | 93,565) | 80,207) | 69,315) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 1.23 | 1.33 | 1.44 | 1.47 | 1.23 |
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).
1 2024 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 170,447 ÷ 138,993 = 1.23
- Revenues
- The revenues demonstrate a consistent upward trajectory over the five-year period. Starting at 85,014 million US dollars in 2020, revenues increased notably each year, reaching 170,447 million US dollars by 2024. This represents a doubling of revenue within five years, indicating strong growth in the geographic area concerned.
- Long-lived assets
- There is a clear and substantial increase in long-lived assets throughout the years. From 69,315 million US dollars in 2020, assets rose steadily each year to reach 138,993 million US dollars in 2024. This growth in asset base suggests significant investment and expansion activities in the location.
- Area asset turnover
- The area asset turnover ratio experienced growth in the initial years, rising from 1.23 in 2020 to a peak of 1.47 in 2021, indicating improved efficiency in utilizing assets to generate revenues. However, following 2021, this ratio showed a gradual decline, falling back to 1.23 by 2024. The declining trend after 2021 may imply that revenue growth is not keeping pace with the increase in assets, reflecting a reduction in asset utilization efficiency.
Area Asset Turnover: International
Alphabet Inc.; International; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 179,360) | 160,872) | 146,062) | 139,634) | 97,337) |
| Long-lived assets | 45,631) | 38,383) | 33,484) | 30,351) | 27,645) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 3.93 | 4.19 | 4.36 | 4.60 | 3.52 |
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).
1 2024 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= 179,360 ÷ 45,631 = 3.93
- Revenues
- The revenues attributable to the "International" geographic area show a consistent upward trend over the five-year period. Starting at $97,337 million in 2020, revenues increase significantly to $139,634 million in 2021, marking a strong growth of over 43%. This growth continues at a slower pace through 2022 and 2023, reaching $160,872 million, and further climbs to $179,360 million in 2024. The trend demonstrates robust expansion and increasing international market presence.
- Long-lived assets
- Long-lived assets also exhibit steady growth across the five years, rising from $27,645 million in 2020 to $45,631 million in 2024. The asset base enlarged substantially, especially noticeable between 2023 and 2024. This increase in assets suggests ongoing investment and capital expenditure in international operations, possibly to support revenue growth and expansion strategies.
- Area asset turnover
- The area asset turnover ratio, which measures how efficiently the company utilizes its assets to generate revenue, shows a declining trend after peaking in 2021. The ratio increased from 3.52 in 2020 to a high of 4.60 in 2021, indicating very efficient asset use. However, the ratio then gradually decreases each subsequent year to 3.93 by 2024. This decline implies that although revenues and assets are growing, asset utilization efficiency is diminishing, possibly due to higher asset accumulation outpacing revenue gains.
Revenues
Alphabet Inc., revenues by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 170,447) | 146,286) | 134,814) | 117,854) | 85,014) |
| International | 179,360) | 160,872) | 146,062) | 139,634) | 97,337) |
| Hedging gains (losses) | 211) | 236) | 1,960) | 149) | 176) |
| Total | 350,018) | 307,394) | 282,836) | 257,637) | 182,527) |
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).
- United States Revenue
- There is a consistent upward trend in revenue from the United States over the analyzed period. Beginning at $85,014 million in 2020, the figure rose sharply to $117,854 million in 2021, representing a significant increase. Growth continued through subsequent years, reaching $170,447 million by the end of 2024. This steady growth indicates a strong and expanding market presence within the United States.
- International Revenue
- International revenue exhibits a similar upward trend, starting at $97,337 million in 2020. It increased substantially to $139,634 million in 2021, followed by steady growth each year thereafter, culminating at $179,360 million in 2024. The international segment contributes a larger absolute revenue amount compared to the United States across all years, highlighting a broad global footprint and successful international operations.
- Hedging Gains (Losses)
- Hedging gains and losses remain relatively minor compared to total revenues, fluctuating across the years. A notable spike occurred in 2022 with a gain of $1,960 million, contrasting with lower levels in other years ranging from $149 million to $236 million. The 2024 figure of $211 million suggests that the large gain in 2022 was an outlier rather than an ongoing trend.
- Total Revenue
- Total revenue shows a consistent and robust increase over the period, from $182,527 million in 2020 to $350,018 million in 2024. This growth trajectory reflects the combined expansion of both domestic and international revenues, with no observable declines or stagnations. The steady upward movement corroborates overall business growth and market expansion in both geographic segments.
- Overall Insights
- The data reveals sustained revenue growth across both geographic areas, with international revenue consistently exceeding that of the United States. The proportionate increases in both regions suggest balanced growth rather than a reliance on a single market. The sporadic nature of hedging gains indicates occasional favorable financial instruments activity, but this is not a primary driver of revenue increases. Overall, the company demonstrates strong performance and expansion in its key geographic markets over the five-year period.
Long-lived assets
Alphabet Inc., long-lived assets by geographic area
US$ in millions
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 138,993) | 110,053) | 93,565) | 80,207) | 69,315) |
| International | 45,631) | 38,383) | 33,484) | 30,351) | 27,645) |
| Total | 184,624) | 148,436) | 127,049) | 110,558) | 96,960) |
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).
- United States Long-Lived Assets
- The value of long-lived assets in the United States demonstrates a consistent upward trend over the five-year period. Starting at 69,315 million US dollars in 2020, the assets increased annually, reaching 138,993 million US dollars by the end of 2024. This represents a growth of approximately 100% over the five years, indicating strong domestic investment or asset accumulation.
- International Long-Lived Assets
- International long-lived assets also show steady growth throughout the period. Beginning at 27,645 million US dollars in 2020, these assets rose to 45,631 million US dollars by the end of 2024. This corresponds to an approximate 65% increase over five years, suggesting ongoing expansion or asset development outside the domestic market, although at a slower pace compared to the United States.
- Total Long-Lived Assets
- The combined total of long-lived assets reflects the aggregation of domestic and international growth trends, rising from 96,960 million US dollars in 2020 to 184,624 million US dollars in 2024. This overall increase of nearly 90% indicates substantial asset growth company-wide. The total figures underscore the dominant contribution of the United States to the asset base, with international assets representing an increasing but smaller portion of the total.
- Observations on Trends and Proportions
- The data reveal a persistent expansion of long-lived assets across both geographic areas, with the United States exhibiting a higher absolute increase and a faster growth rate than the international segment. Although international assets grow at a slower pace, their consistent increase contributes positively to total asset growth. The proportion of assets held in the United States remains significantly higher than international assets throughout the period, suggesting a primary focus on domestic asset investment.