Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Long-term Activity Ratios (Summary)
Alphabet Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibited an upward trend from 2.15 at the end of 2020 to a peak of 2.64 in 2021. Subsequently, it showed a declining pattern over the next three years, decreasing to 2.51 in 2022, 2.29 in 2023, and further to 2.05 in 2024. This suggests that the efficiency in utilizing net fixed assets to generate sales improved initially but has gradually weakened in the later years.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When considering operating lease right-of-use assets, the turnover ratio followed a similar trajectory. Starting at 1.88 in 2020, it increased to 2.33 in 2021, then declined steadily to 2.23 in 2022, 2.07 in 2023, and 1.90 in 2024. The pattern indicates a consistent decrease in asset utilization efficiency when including leased assets after the 2021 peak.
- Total Asset Turnover
- The total asset turnover ratio demonstrated continuous improvement during the period under review. It rose from 0.57 in 2020 to 0.72 in 2021, followed by a further increase to 0.77 in 2022. Despite a slight dip to 0.76 in 2023, the ratio rebounded to 0.78 in 2024, reflecting an overall enhancement in the ability to generate revenue from total assets.
- Equity Turnover
- Equity turnover experienced a notable increase from 0.82 in 2020 to 1.02 in 2021, continuing to rise to 1.10 in 2022. The ratio then stabilized somewhat, registering 1.08 in both 2023 and 2024. This stability following a period of growth indicates sustained effectiveness in utilizing shareholder equity to generate sales in the most recent years.
Net Fixed Asset Turnover
Alphabet Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- Revenues demonstrated a consistent upward trend over the five-year period. Starting from $182,527 million in 2020, revenues increased steadily each year to reach $350,018 million by the end of 2024. This represents a significant growth, nearly doubling over the examined timeframe.
- Property and Equipment, Net
- The net value of property and equipment also showed a continuous increase each year, rising from $84,749 million in 2020 to $171,036 million in 2024. This upward movement indicates ongoing investments in fixed assets, with the asset base more than doubling during the period.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures revenue generated per dollar of net fixed assets, depicted a declining trend despite the growth in both revenues and asset values. The ratio decreased from 2.15 in 2020 to 2.05 in 2024, with minor fluctuations in intermediate years. This suggests that while revenues expanded, the increase in property and equipment outpaced revenue growth, indicating potentially lower efficiency or a lag in asset utilization improvements.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Alphabet Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Property and equipment, net | ||||||
| Operating lease assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | ||||||
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- Revenues demonstrate a consistent upward trajectory over the five-year period, increasing from $182.5 billion in 2020 to $350.0 billion in 2024. This represents a near doubling of revenue, highlighting robust growth. The annual increments show steady acceleration, particularly notable between 2023 and 2024.
- Property and Equipment (Net)
- The net value of property and equipment, inclusive of operating lease right-of-use assets, also shows significant growth throughout the analyzed period. Starting at approximately $97.0 billion in 2020, this asset base expanded to $184.6 billion by 2024. This more than 90% increase signifies substantial capital investment and asset accumulation, potentially reflecting strategic expansion or modernization efforts.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures how efficiently the fixed assets generate revenue, exhibits a declining trend after an initial increase. It rose from 1.88 in 2020 to a peak of 2.33 in 2021, indicating improved asset utilization in that year. However, subsequent years show a gradual decrease to 1.9 by 2024. This decline suggests that while revenues are growing, the increase in net fixed assets is outpacing revenue growth, potentially indicating decreasing efficiency in asset utilization or reflecting recent sizeable asset investments not yet fully contributing to revenue.
- Overall Analysis
- The data reflects strong revenue growth paired with substantial investment in fixed assets. The initial increase and subsequent decrease in the net fixed asset turnover ratio imply an evolving balance between asset base expansion and revenue generation. This pattern could be indicative of a shift towards long-term capacity building, with asset growth temporarily outstripping revenue gains. Continuous monitoring of this ratio in relation to the company's operational strategies would be advisable to ensure assets are effectively leveraged for revenue growth.
Total Asset Turnover
Alphabet Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Total Asset Turnover, Industry | ||||||
| Communication Services | ||||||
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
Total asset turnover = Revenues ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The annual financial data demonstrates a consistent upward trajectory in several key performance indicators over the analyzed five-year period.
- Revenues
- Revenues have shown a steady and significant increase each year. Starting from 182,527 million US dollars in 2020, revenues rose to 257,637 million in 2021, followed by further growth to 282,836 million in 2022. The upward trend continued with revenues reaching 307,394 million in 2023 and 350,018 million in 2024. This represents an approximate overall increase of 91.7% over the five years, reflecting robust top-line growth.
- Total Assets
- Total assets also exhibited a consistent and gradual increase. Beginning at 319,616 million US dollars in 2020, assets grew to 359,268 million in 2021, with subsequent increments to 365,264 million in 2022, 402,392 million in 2023, and finally 450,256 million in 2024. The total assets increased by about 40.8% across the period, indicating ongoing investment and asset accumulation supporting the company's operations and expansion.
- Total Asset Turnover Ratio
- The total asset turnover ratio, which measures the efficiency in using assets to generate revenue, showed a positive trend overall. It increased from 0.57 in 2020 to 0.72 in 2021, rising further to 0.77 in 2022. Although relatively stable in 2023 at 0.76, it improved again to 0.78 in 2024. The upward trend in this ratio suggests an enhancement in asset utilization effectiveness, indicating that revenues are growing at a faster rate relative to asset growth.
Overall, the data reflects strong revenue growth accompanied by proportional asset base expansion and improved operational efficiency, as indicated by rising asset turnover. These trends imply that the company has been effectively scaling its business while enhancing its ability to convert assets into revenue over the period analyzed.
Equity Turnover
Alphabet Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Take-Two Interactive Software Inc. | ||||||
| Walt Disney Co. | ||||||
| Equity Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Equity Turnover, Industry | ||||||
| Communication Services | ||||||
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
Equity turnover = Revenues ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Revenues
- The reported revenues show a consistent upward trend over the five-year period. Beginning at 182,527 million US dollars in 2020, revenues increased to 257,637 million in 2021, representing a significant growth. This positive trajectory continued, reaching 282,836 million in 2022, 307,394 million in 2023, and culminating at 350,018 million in 2024. The annual revenue growth indicates strong sales performance and expanding business operations throughout the years analyzed.
- Stockholders’ Equity
- Stockholders' equity also exhibits a steady increase from 222,544 million US dollars in 2020 to 325,084 million in 2024. The equity rose to 251,635 million in 2021, followed by moderate gains to 256,144 million in 2022. The upward trend accelerated in the subsequent years, achieving 283,379 million in 2023 and 325,084 million in 2024. This growth suggests the accumulation of retained earnings or additional equity injections and reflects a strengthening capital base.
- Equity Turnover
- Equity turnover improved notably from 0.82 in 2020 to 1.02 in 2021, indicating better utilization of equity to generate revenues. It continued to increase to 1.10 in 2022, signaling enhanced efficiency. However, from 2022 onwards, the ratio stabilized slightly, with values of 1.08 in both 2023 and 2024. This stabilization points to a period where the relationship between revenues and equity maintains relative consistency, indicative of controlled growth and operational efficiency.