Analysis of Long-term (Investment) Activity Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
An analysis of long-term activity ratios reveals a consistent decline in asset utilization efficiency over the observed period, with a notable acceleration in this downward trend during the final six quarters.
- Fixed Asset Utilization
- Both the net fixed asset turnover and the net fixed asset turnover including operating leases exhibit a steady, linear decrease. Net fixed asset turnover declined from 2.59 in March 2022 to 1.39 by June 2026. This persistent contraction suggests that the growth in the company's fixed asset base has significantly outpaced the growth in the revenue generated from those assets, indicating a period of aggressive capital expenditure that has yet to yield proportional top-line returns.
- Total Asset Efficiency
- Total asset turnover remained relatively stable between 0.74 and 0.79 from March 2022 through December 2024. However, a sharp deterioration began in early 2025, with the ratio falling precipitously to 0.48 by June 2026. This pattern indicates a substantial expansion of the total asset base in the latter part of the period, which has led to a marked reduction in overall asset productivity.
- Equity Productivity
- Equity turnover mirrors the trend seen in total asset turnover, maintaining a stable range between 1.02 and 1.11 for the first three years. Starting in March 2025, a significant decline is observed, with the ratio dropping to 0.70 by June 2026. This suggests that while equity has increased, it is being utilized less efficiently to generate revenue in the most recent quarters.
In summary, the data indicates a transition from a period of stable asset productivity to a phase of declining efficiency. The divergent patterns between the linear decline of fixed asset turnover and the sharp drop in total asset and equity turnover suggest that while fixed asset investment was gradual, other balance sheet expansions occurred more abruptly toward the end of the period.
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Net Fixed Asset Turnover
Alphabet Inc., net fixed asset turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenues | 119,796) | 109,896) | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | ||||||
| Property and equipment, net | 321,212) | 281,020) | 246,597) | 223,787) | 203,231) | 185,062) | 171,036) | 161,270) | 151,155) | 143,182) | 134,345) | 125,705) | 121,208) | 117,560) | 112,668) | 108,363) | 106,223) | 104,218) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover1 | 1.39 | 1.50 | 1.63 | 1.72 | 1.83 | 1.94 | 2.05 | 2.11 | 2.17 | 2.22 | 2.29 | 2.36 | 2.39 | 2.42 | 2.51 | 2.60 | 2.62 | 2.59 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Comcast Corp. | 1.89 | 1.91 | 1.88 | 1.90 | 1.94 | 1.95 | 1.98 | 1.99 | 2.00 | 2.04 | 2.04 | 2.08 | 2.12 | 2.13 | 2.19 | 2.26 | 2.27 | 2.23 | ||||||
| Meta Platforms Inc. | 1.01 | 1.10 | 1.14 | 1.18 | 1.22 | 1.28 | 1.36 | 1.39 | 1.45 | 1.44 | 1.40 | 1.38 | 1.37 | 1.39 | 1.47 | 1.60 | 1.77 | 1.94 | ||||||
| Netflix Inc. | 20.16 | 21.83 | 22.54 | 23.60 | 23.91 | 24.43 | 24.47 | 23.97 | 24.03 | 23.27 | 22.61 | 21.85 | 21.83 | 22.58 | 22.61 | 22.93 | 22.78 | 21.97 | ||||||
| Trade Desk Inc. | 6.57 | 7.63 | 7.30 | 8.65 | 8.64 | 10.24 | 11.68 | 11.67 | 11.33 | 13.65 | 12.06 | 11.98 | 10.84 | 9.65 | 9.08 | 8.93 | 9.98 | 9.89 | ||||||
| Walt Disney Co. | 2.20 | 2.22 | 2.29 | 2.35 | 2.41 | 2.43 | 2.47 | 2.50 | 2.51 | 2.52 | 2.54 | 2.54 | 2.52 | 2.47 | 2.46 | 2.42 | 2.33 | 2.23 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Net fixed asset turnover
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Property and equipment, net
= (119,796 + 109,896 + 113,828 + 102,346)
÷ 321,212 = 1.39
2 Click competitor name to see calculations.
An analysis of the investment activity reveals a persistent divergence between revenue growth and the expansion of the fixed asset base. While top-line revenues have increased over the observed period, the rate of investment in net property and equipment has significantly outpaced this growth, resulting in a consistent decline in asset utilization efficiency.
- Revenue Trends
- Revenues demonstrated a steady upward trajectory, growing from 68,011 million USD in March 2022 to 119,796 million USD by June 2026. The growth pattern shows recurring seasonal peaks, particularly in the fourth quarter of each fiscal year, though the overall trend remains positive.
- Fixed Asset Expansion
- Net property and equipment experienced aggressive growth, increasing from 104,218 million USD in March 2022 to 321,212 million USD by June 2026. This represents a substantial increase in the company's long-term infrastructure investment, with the pace of acquisition accelerating markedly from March 2024 through the end of the period.
- Net Fixed Asset Turnover Performance
- The net fixed asset turnover ratio exhibited a continuous and linear decline, falling from 2.59 in March 2022 to 1.39 in June 2026. This downward trend confirms that each unit of investment in net fixed assets is generating progressively less revenue, indicating that the capital expenditure cycle has not yet yielded proportional increases in revenue generation.
The overall financial pattern suggests a strategic phase of heavy capital investment. The steady erosion of the turnover ratio indicates that the expansion of the asset base is currently operating as a lead indicator, with the capacity being built ahead of the corresponding revenue realization.
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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 (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenues | 119,796) | 109,896) | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | ||||||
| Property and equipment, net | 321,212) | 281,020) | 246,597) | 223,787) | 203,231) | 185,062) | 171,036) | 161,270) | 151,155) | 143,182) | 134,345) | 125,705) | 121,208) | 117,560) | 112,668) | 108,363) | 106,223) | 104,218) | ||||||
| Operating lease assets | 17,694) | 15,509) | 15,221) | 14,524) | 14,255) | 13,722) | 13,588) | 13,561) | 13,606) | 13,768) | 14,091) | 14,199) | 14,469) | 14,447) | 14,381) | 13,677) | 13,398) | 12,992) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | 338,906) | 296,529) | 261,818) | 238,311) | 217,486) | 198,784) | 184,624) | 174,831) | 164,761) | 156,950) | 148,436) | 139,904) | 135,677) | 132,007) | 127,049) | 122,040) | 119,621) | 117,210) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.32 | 1.42 | 1.54 | 1.62 | 1.71 | 1.81 | 1.90 | 1.94 | 1.99 | 2.03 | 2.07 | 2.12 | 2.13 | 2.16 | 2.23 | 2.31 | 2.33 | 2.31 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||||||||||||||||||||
| Meta Platforms Inc. | 0.91 | 0.99 | 1.02 | 1.07 | 1.10 | 1.14 | 1.21 | 1.23 | 1.28 | 1.27 | 1.23 | 1.21 | 1.19 | 1.21 | 1.26 | 1.35 | 1.46 | 1.62 | ||||||
| Trade Desk Inc. | 3.78 | 4.15 | 3.92 | 4.58 | 4.62 | 4.85 | 5.17 | 5.24 | 5.16 | 5.83 | 5.42 | 5.07 | 4.66 | 4.30 | 4.00 | 3.73 | 3.81 | 3.59 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset)
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Property and equipment, net (including operating lease, right-of-use asset)
= (119,796 + 109,896 + 113,828 + 102,346)
÷ 338,906 = 1.32
2 Click competitor name to see calculations.
A comprehensive analysis of the financial metrics from March 2022 through June 2026 reveals a significant divergence between revenue growth and the expansion of the fixed asset base. While revenues exhibit a consistent upward trajectory, the growth in net property and equipment, including right-of-use assets, has accelerated at a disproportionately higher rate, leading to a steady decline in the net fixed asset turnover ratio.
- Revenue Trends
- Revenues increased from 68,011 million US dollars in March 2022 to 119,796 million US dollars by June 2026. This growth reflects a strong expansion in top-line performance, characterized by a general upward trend despite periodic quarterly fluctuations.
- Fixed Asset Expansion
- Net property and equipment, including operating lease right-of-use assets, experienced substantial growth, rising from 117,210 million US dollars in March 2022 to 338,906 million US dollars by June 2026. The pace of asset accumulation accelerated markedly starting in late 2024, suggesting a period of intensive capital investment in infrastructure.
- Net Fixed Asset Turnover Analysis
- The net fixed asset turnover ratio demonstrates a continuous downward trend throughout the analyzed period, falling from 2.31 in March 2022 to 1.32 in June 2026. This decline indicates that for every dollar invested in net fixed assets, the amount of revenue generated has diminished over time.
- Operational Implications
- The inverse relationship between the rising asset base and the falling turnover ratio suggests that capital deployment is outpacing revenue generation. This pattern is typical of a heavy investment phase where significant infrastructure is deployed in anticipation of future scaling, resulting in a temporary reduction in asset utilization efficiency.
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Total Asset Turnover
Alphabet Inc., total asset turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenues | 119,796) | 109,896) | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | ||||||
| Total assets | 921,983) | 703,919) | 595,281) | 536,469) | 502,053) | 475,374) | 450,256) | 430,266) | 414,770) | 407,350) | 402,392) | 396,711) | 383,044) | 369,491) | 365,264) | 358,255) | 355,185) | 357,096) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Total asset turnover1 | 0.48 | 0.60 | 0.68 | 0.72 | 0.74 | 0.76 | 0.78 | 0.79 | 0.79 | 0.78 | 0.76 | 0.75 | 0.76 | 0.77 | 0.77 | 0.79 | 0.78 | 0.76 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Total Asset Turnover, Competitors2 | ||||||||||||||||||||||||
| Comcast Corp. | 0.48 | 0.48 | 0.45 | 0.45 | 0.45 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.46 | 0.47 | 0.48 | 0.46 | 0.44 | ||||||
| Meta Platforms Inc. | 0.51 | 0.54 | 0.55 | 0.62 | 0.61 | 0.61 | 0.60 | 0.61 | 0.65 | 0.64 | 0.59 | 0.59 | 0.58 | 0.64 | 0.63 | 0.66 | 0.70 | 0.73 | ||||||
| Netflix Inc. | 0.83 | 0.77 | 0.81 | 0.79 | 0.79 | 0.77 | 0.73 | 0.72 | 0.74 | 0.72 | 0.69 | 0.66 | 0.63 | 0.64 | 0.65 | 0.66 | 0.67 | 0.67 | ||||||
| Trade Desk Inc. | 0.52 | 0.52 | 0.47 | 0.47 | 0.45 | 0.45 | 0.40 | 0.42 | 0.42 | 0.44 | 0.40 | 0.41 | 0.40 | 0.41 | 0.36 | 0.38 | 0.38 | 0.38 | ||||||
| Walt Disney Co. | 0.47 | 0.47 | 0.48 | 0.48 | 0.48 | 0.47 | 0.47 | 0.46 | 0.46 | 0.45 | 0.43 | 0.43 | 0.42 | 0.42 | 0.41 | 0.40 | 0.38 | 0.36 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Total asset turnover
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Total assets
= (119,796 + 109,896 + 113,828 + 102,346)
÷ 921,983 = 0.48
2 Click competitor name to see calculations.
The analysis of the financial data from March 2022 through June 2026 reveals a period of consistent revenue growth coupled with an accelerating expansion of the asset base, resulting in a significant decline in asset utilization efficiency during the latter half of the observed period.
- Revenue Performance
- Quarterly revenues exhibited a steady upward trajectory, increasing from 68,011 million USD in March 2022 to 119,796 million USD by June 2026. While minor quarterly fluctuations occurred, the overall trend demonstrates sustained growth in top-line performance over the five-year span.
- Asset Base Expansion
- Total assets grew from 357,096 million USD in March 2022 to 921,983 million USD in June 2026. The growth pattern is characterized by a moderate increase through 2024, followed by a rapid acceleration starting in late 2024 and continuing through 2026. Specifically, assets nearly doubled between December 2024 and June 2026, rising from 450,256 million USD to 921,983 million USD.
- Total Asset Turnover Trends
- The total asset turnover ratio remained relatively stable between 0.75 and 0.79 from March 2022 until September 2024, suggesting a balanced relationship between asset investment and revenue generation. However, a consistent downward trend emerged after September 2024. The ratio declined from a peak of 0.79 in September 2024 to 0.48 by June 2026.
- Operational Efficiency Insights
- The divergence between the rate of asset growth and the rate of revenue growth led to a marked reduction in the asset turnover ratio. This indicates that while the company continued to expand its revenue, the scale of investment in assets far outpaced the resulting income generation. The sharp drop to 0.48 in the final quarter suggests a significant decrease in the efficiency of the total asset base in producing sales.
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Equity Turnover
Alphabet Inc., equity turnover calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||||||||
| Revenues | 119,796) | 109,896) | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | ||||||
| Stockholders’ equity | 640,480) | 478,746) | 415,265) | 386,867) | 362,916) | 345,267) | 325,084) | 314,119) | 300,753) | 292,844) | 283,379) | 273,202) | 267,141) | 260,894) | 256,144) | 253,626) | 255,419) | 254,004) | ||||||
| Long-term Activity Ratio | ||||||||||||||||||||||||
| Equity turnover1 | 0.70 | 0.88 | 0.97 | 1.00 | 1.02 | 1.04 | 1.08 | 1.08 | 1.09 | 1.09 | 1.08 | 1.09 | 1.08 | 1.09 | 1.10 | 1.11 | 1.09 | 1.06 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Equity Turnover, Competitors2 | ||||||||||||||||||||||||
| Comcast Corp. | 1.39 | 1.42 | 1.28 | 1.27 | 1.28 | 1.43 | 1.45 | 1.43 | 1.46 | 1.48 | 1.47 | 1.46 | 1.43 | 1.46 | 1.50 | 1.51 | 1.33 | 1.27 | ||||||
| Meta Platforms Inc. | 0.87 | 0.88 | 0.93 | 0.98 | 0.92 | 0.92 | 0.90 | 0.95 | 0.96 | 0.95 | 0.88 | 0.89 | 0.90 | 0.94 | 0.93 | 0.95 | 0.95 | 0.97 | ||||||
| Netflix Inc. | 1.60 | 1.51 | 1.70 | 1.67 | 1.67 | 1.67 | 1.58 | 1.65 | 1.64 | 1.63 | 1.64 | 1.48 | 1.41 | 1.46 | 1.52 | 1.53 | 1.63 | 1.73 | ||||||
| Trade Desk Inc. | 1.16 | 1.21 | 1.17 | 1.07 | 0.99 | 0.95 | 0.83 | 0.88 | 0.90 | 0.95 | 0.90 | 0.85 | 0.84 | 0.85 | 0.75 | 0.77 | 0.78 | 0.78 | ||||||
| Walt Disney Co. | 0.89 | 0.88 | 0.86 | 0.87 | 0.90 | 0.91 | 0.91 | 0.89 | 0.90 | 0.88 | 0.90 | 0.90 | 0.89 | 0.88 | 0.87 | 0.88 | 0.85 | 0.81 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q2 2026 Calculation
Equity turnover
= (RevenuesQ2 2026
+ RevenuesQ1 2026
+ RevenuesQ4 2025
+ RevenuesQ3 2025)
÷ Stockholders’ equity
= (119,796 + 109,896 + 113,828 + 102,346)
÷ 640,480 = 0.70
2 Click competitor name to see calculations.
An analysis of the equity turnover ratio reveals a transition from a period of operational stability to a significant decline in capital efficiency over the observed timeframe.
- Revenue Growth Patterns
- Revenues demonstrate a consistent long-term upward trajectory, rising from 68,011 million US$ in March 2022 to 119,796 million US$ by June 2026. The growth pattern is characterized by recurring quarterly seasonality, where first-quarter dips are typically followed by recovery and expansion throughout the remainder of the year.
- Equity Base Expansion
- Stockholders' equity experienced steady growth from March 2022 through December 2025, moving from 254,004 million US$ to 415,265 million US$. A sharp acceleration in equity accumulation is observed in the first half of 2026, with the balance increasing rapidly to 640,480 million US$ by June 2026.
- Equity Turnover Trend Analysis
- The equity turnover ratio remained stable between 1.06 and 1.11 from March 2022 through December 2023, indicating a proportional relationship between the equity base and revenue generation. A gradual decline began in early 2024, with the ratio dropping to 1.04 by March 2025. This trend accelerated sharply in 2026, with the ratio falling to 0.88 in March and ending at 0.70 in June 2026.
- Efficiency Implications
- The contraction of the equity turnover ratio is primarily driven by the disproportionate growth of stockholders' equity relative to revenue growth in the final periods. While revenues continued to increase, the substantial surge in the equity base during 2026 significantly outpaced revenue gains, resulting in a marked decrease in the efficiency of equity utilization for generating sales.
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