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 (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| 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. net fixed asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| 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. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Alphabet Inc. total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Alphabet Inc. equity turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Net Fixed Asset Turnover
Alphabet Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 257,637) | 182,527) | 161,857) | 136,819) | 110,855) | |
| Property and equipment, net | 97,599) | 84,749) | 73,646) | 59,719) | 42,383) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 2.64 | 2.15 | 2.20 | 2.29 | 2.62 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Charter Communications Inc. | 1.51 | 1.40 | 1.32 | 1.24 | 1.23 | |
| Comcast Corp. | 2.15 | 1.99 | 2.25 | 2.13 | 2.20 | |
| Meta Platforms Inc. | 2.04 | 1.88 | 2.00 | 2.26 | 2.96 | |
| Netflix Inc. | 22.44 | 26.03 | 35.66 | 37.76 | 36.61 | |
| Walt Disney Co. | 2.05 | 2.02 | 2.19 | 2.00 | 1.93 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | 2.30 | 2.04 | 2.13 | 2.09 | 2.19 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | 1.87 | 1.70 | 1.77 | 1.71 | 1.71 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= 257,637 ÷ 97,599 = 2.64
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. net fixed asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
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, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 257,637) | 182,527) | 161,857) | 136,819) | 110,855) | |
| Property and equipment, net | 97,599) | 84,749) | 73,646) | 59,719) | 42,383) | |
| Operating lease assets | 12,959) | 12,211) | 10,941) | —) | —) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 110,558) | 96,960) | 84,587) | 59,719) | 42,383) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 2.33 | 1.88 | 1.91 | 2.29 | 2.62 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Charter Communications Inc. | 1.45 | 1.35 | 1.28 | 1.24 | 1.23 | |
| Comcast Corp. | 1.92 | 1.86 | 2.08 | 2.13 | 2.20 | |
| Meta Platforms Inc. | 1.69 | 1.56 | 1.58 | 2.26 | 2.96 | |
| Netflix Inc. | 7.88 | 8.34 | 9.61 | 37.76 | 36.61 | |
| Walt Disney Co. | 1.83 | 1.81 | 2.19 | 2.00 | 1.93 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | 2.02 | 1.81 | 1.90 | 2.09 | 2.19 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | 1.54 | 1.41 | 1.50 | 1.71 | 1.71 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 257,637 ÷ 110,558 = 2.33
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. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Total Asset Turnover
Alphabet Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 257,637) | 182,527) | 161,857) | 136,819) | 110,855) | |
| Total assets | 359,268) | 319,616) | 275,909) | 232,792) | 197,295) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.72 | 0.57 | 0.59 | 0.59 | 0.56 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Charter Communications Inc. | 0.36 | 0.33 | 0.31 | 0.30 | 0.28 | |
| Comcast Corp. | 0.42 | 0.38 | 0.41 | 0.38 | 0.45 | |
| Meta Platforms Inc. | 0.71 | 0.54 | 0.53 | 0.57 | 0.48 | |
| Netflix Inc. | 0.67 | 0.64 | 0.59 | 0.61 | 0.61 | |
| Walt Disney Co. | 0.33 | 0.32 | 0.36 | 0.60 | 0.58 | |
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | 0.54 | 0.45 | 0.45 | 0.48 | 0.47 | |
| Total Asset Turnover, Industry | ||||||
| Communication Services | 0.44 | 0.40 | 0.42 | 0.44 | 0.45 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Total asset turnover = Revenues ÷ Total assets
= 257,637 ÷ 359,268 = 0.72
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. total asset turnover ratio deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Equity Turnover
Alphabet Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 257,637) | 182,527) | 161,857) | 136,819) | 110,855) | |
| Stockholders’ equity | 251,635) | 222,544) | 201,442) | 177,628) | 152,502) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.02 | 0.82 | 0.80 | 0.77 | 0.73 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Charter Communications Inc. | 3.68 | 2.02 | 1.46 | 1.20 | 1.06 | |
| Comcast Corp. | 1.21 | 1.15 | 1.32 | 1.32 | 1.23 | |
| Meta Platforms Inc. | 0.94 | 0.67 | 0.70 | 0.66 | 0.55 | |
| Netflix Inc. | 1.87 | 2.26 | 2.66 | 3.01 | 3.26 | |
| Walt Disney Co. | 0.76 | 0.78 | 0.78 | 1.22 | 1.33 | |
| Equity Turnover, Sector | ||||||
| Media & Entertainment | 1.08 | 0.91 | 0.93 | 0.96 | 0.91 | |
| Equity Turnover, Industry | ||||||
| Communication Services | 1.13 | 1.03 | 1.06 | 1.10 | 1.15 | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 2021 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= 257,637 ÷ 251,635 = 1.02
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. equity turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |