Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Alphabet Inc. (NASDAQ:GOOG)

Analysis of Long-term (Investment) Activity Ratios

Beginner level

Long-term Activity Ratios (Summary)

Alphabet Inc., long-term (investment) activity ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015
Net fixed asset turnover 2.20 2.29 2.62 2.64 2.58
Net fixed asset turnover (including operating lease, right-of-use asset) 1.91 2.29 2.62 2.64 2.58
Total asset turnover 0.59 0.59 0.56 0.54 0.51
Equity turnover 0.80 0.77 0.73 0.65 0.62

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.