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.
Long-term Activity Ratios (Summary)
Alphabet Inc., long-term (investment) activity ratios
Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-11).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Alphabet Inc.’s net fixed asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Alphabet Inc.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2017 to 2018 and from 2018 to 2019. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Alphabet Inc.’s total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Alphabet Inc.’s equity turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |
Net Fixed Asset Turnover
Alphabet Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 161,857 | 136,819 | 110,855 | 90,272 | 74,989 | |
| Property and equipment, net | 73,646 | 59,719 | 42,383 | 34,234 | 29,016 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 2.20 | 2.29 | 2.62 | 2.64 | 2.58 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Adobe Inc. | 8.64 | 8.40 | 7.79 | 7.17 | 6.09 | |
| Autodesk Inc. | 17.17 | 14.18 | 12.81 | 14.79 | 15.78 | |
| Facebook Inc. | 2.00 | 2.26 | 2.96 | 3.22 | 3.15 | |
| International Business Machines Corp. | 7.71 | 7.38 | 7.12 | 7.38 | 7.62 | |
| Intuit Inc. | 8.70 | 7.34 | 5.03 | 4.55 | 6.15 | |
| Microsoft Corp. | 3.45 | 3.75 | 3.79 | 4.65 | 6.35 | |
| Oracle Corp. | 6.32 | 6.75 | 7.10 | 9.26 | 10.37 | |
| salesforce.com inc. | 6.48 | 5.38 | 4.69 | 3.89 | 4.77 | |
| ServiceNow Inc. | 7.39 | 7.51 | 7.89 | 7.66 | 6.95 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Software & Computer Services | 3.08 | 3.36 | 3.82 | 4.27 | 4.86 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Technology | 3.38 | 3.69 | 3.99 | 4.42 | 5.20 | |
Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= 161,857 ÷ 73,646 = 2.20
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Alphabet Inc.’s net fixed asset turnover ratio deteriorated from 2017 to 2018 and from 2018 to 2019. |
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, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 161,857 | 136,819 | 110,855 | 90,272 | 74,989 | |
| Property and equipment, net | 73,646 | 59,719 | 42,383 | 34,234 | 29,016 | |
| Operating lease assets | 10,941 | — | — | — | — | |
| Property and equipment, net (including operating lease, right-of-use asset) | 84,587 | 59,719 | 42,383 | 34,234 | 29,016 | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.91 | 2.29 | 2.62 | 2.64 | 2.58 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Adobe Inc. | 8.64 | 8.40 | 7.79 | 7.17 | 6.09 | |
| Autodesk Inc. | 17.17 | 14.18 | 12.81 | 14.79 | 15.78 | |
| Facebook Inc. | 1.58 | 2.26 | 2.96 | 3.22 | 3.15 | |
| International Business Machines Corp. | 5.14 | 7.38 | 7.12 | 7.38 | 7.62 | |
| Intuit Inc. | 8.70 | 7.34 | 5.03 | 4.55 | 6.15 | |
| Microsoft Corp. | 2.87 | 3.05 | 3.79 | 4.65 | 6.35 | |
| Oracle Corp. | 6.32 | 6.75 | 7.10 | 9.26 | 10.37 | |
| salesforce.com inc. | 6.48 | 5.38 | 4.69 | 3.89 | 4.77 | |
| ServiceNow Inc. | 3.98 | 7.51 | 7.89 | 7.66 | 6.95 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Software & Computer Services | 2.57 | 3.20 | 3.82 | 4.27 | 4.86 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Technology | 3.04 | 3.60 | 3.99 | 4.42 | 5.20 | |
Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 161,857 ÷ 84,587 = 1.91
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Alphabet Inc.’s net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2017 to 2018 and from 2018 to 2019. |
Total Asset Turnover
Alphabet Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 161,857 | 136,819 | 110,855 | 90,272 | 74,989 | |
| Total assets | 275,909 | 232,792 | 197,295 | 167,497 | 147,461 | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.59 | 0.59 | 0.56 | 0.54 | 0.51 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Adobe Inc. | 0.54 | 0.48 | 0.50 | 0.46 | 0.41 | |
| Autodesk Inc. | 0.54 | 0.50 | 0.42 | 0.45 | 0.51 | |
| Facebook Inc. | 0.53 | 0.57 | 0.48 | 0.43 | 0.36 | |
| International Business Machines Corp. | 0.51 | 0.65 | 0.63 | 0.68 | 0.74 | |
| Intuit Inc. | 1.08 | 1.15 | 1.27 | 1.10 | 0.84 | |
| Microsoft Corp. | 0.44 | 0.43 | 0.37 | 0.44 | 0.53 | |
| Oracle Corp. | 0.36 | 0.29 | 0.28 | 0.33 | 0.34 | |
| salesforce.com inc. | 0.43 | 0.50 | 0.48 | 0.52 | 0.50 | |
| ServiceNow Inc. | 0.57 | 0.67 | 0.57 | 0.68 | 0.56 | |
| Total Asset Turnover, Sector | ||||||
| Software & Computer Services | 0.50 | 0.50 | 0.46 | 0.49 | 0.52 | |
| Total Asset Turnover, Industry | ||||||
| Technology | 0.56 | 0.57 | 0.49 | 0.53 | 0.59 | |
Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Total asset turnover = Revenues ÷ Total assets
= 161,857 ÷ 275,909 = 0.59
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Alphabet Inc.’s total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019. |
Equity Turnover
Alphabet Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 161,857 | 136,819 | 110,855 | 90,272 | 74,989 | |
| Stockholders’ equity | 201,442 | 177,628 | 152,502 | 139,036 | 120,331 | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.80 | 0.77 | 0.73 | 0.65 | 0.62 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Adobe Inc. | 1.06 | 0.96 | 0.86 | 0.79 | 0.68 | |
| Autodesk Inc. | — | — | 2.77 | 1.55 | 1.13 | |
| Facebook Inc. | 0.70 | 0.66 | 0.55 | 0.47 | 0.41 | |
| International Business Machines Corp. | 3.70 | 4.74 | 4.50 | 4.38 | 5.73 | |
| Intuit Inc. | 1.81 | 2.53 | 3.82 | 4.04 | 1.80 | |
| Microsoft Corp. | 1.23 | 1.33 | 1.24 | 1.19 | 1.17 | |
| Oracle Corp. | 1.81 | 0.87 | 0.70 | 0.78 | 0.79 | |
| salesforce.com inc. | 0.85 | 1.12 | 1.12 | 1.33 | 1.35 | |
| ServiceNow Inc. | 1.63 | 2.35 | 3.31 | 3.59 | 1.77 | |
| Equity Turnover, Sector | ||||||
| Software & Computer Services | 1.07 | 1.06 | 0.98 | 0.97 | 1.00 | |
| Equity Turnover, Industry | ||||||
| Technology | 1.30 | 1.30 | 1.09 | 1.07 | 1.17 | |
Based on: 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-02-11).
1 2019 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= 161,857 ÷ 201,442 = 0.80
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Alphabet Inc.’s equity turnover ratio improved from 2017 to 2018 and from 2018 to 2019. |