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Microsoft Excel LibreOffice Calc


Profitability Analysis

Difficulty: Beginner


Ratios (Summary)

Alphabet Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Return on Sales
Gross profit margin hidden% hidden% hidden% hidden% hidden%
Operating profit margin hidden% hidden% hidden% hidden% hidden%
Net profit margin hidden% hidden% hidden% hidden% hidden%
Return on Investment
Return on equity (ROE) hidden% hidden% hidden% hidden% hidden%
Return on assets (ROA) hidden% hidden% hidden% hidden% hidden%

Source: Based on data from Alphabet Inc. Annual Reports

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Alphabet Inc.'s gross profit margin deteriorated from 2015 to 2016 and from 2016 to 2017.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Alphabet Inc.'s operating profit margin improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Alphabet Inc.'s net profit margin deteriorated from 2015 to 2016 and from 2016 to 2017.
ROE A profitability ratio calculated as net income divided by shareholders' equity. Alphabet Inc.'s ROE improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.
ROA A profitability ratio calculated as net income divided by total assets. Alphabet Inc.'s ROA improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Gross Profit Margin

Alphabet Inc., gross profit margin calculation

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Gross profit hidden hidden hidden hidden hidden
Revenues hidden hidden hidden hidden hidden
Ratio
Gross profit margin1 hidden% hidden% hidden% hidden% hidden%
Benchmarks
Gross Profit Margin, Competitors
Adobe Systems Inc. hidden% hidden% hidden% hidden% hidden%
Facebook Inc. hidden% hidden% hidden% hidden% hidden%
International Business Machines Corp. hidden% hidden% hidden% hidden% hidden%
Microsoft Corp. hidden% hidden% hidden% hidden% hidden%
Oracle Corp. hidden% hidden% hidden% hidden% hidden%
salesforce.com inc. hidden% hidden% hidden% hidden% hidden%

Source: Based on data from Alphabet Inc. Annual Reports

2017 Calculations

1 Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × hidden ÷ hidden = hidden%

Ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Alphabet Inc.'s gross profit margin deteriorated from 2015 to 2016 and from 2016 to 2017.

Operating Profit Margin

Alphabet Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Income from operations hidden hidden hidden hidden hidden
Revenues hidden hidden hidden hidden hidden
Ratio
Operating profit margin1 hidden% hidden% hidden% hidden% hidden%
Benchmarks
Operating Profit Margin, Competitors
Adobe Systems Inc. hidden% hidden% hidden% hidden% hidden%
Facebook Inc. hidden% hidden% hidden% hidden% hidden%
International Business Machines Corp. hidden% hidden% hidden% hidden% hidden%
Microsoft Corp. hidden% hidden% hidden% hidden% hidden%
Oracle Corp. hidden% hidden% hidden% hidden% hidden%
salesforce.com inc. hidden% hidden% hidden% hidden% hidden%
Operating Profit Margin, Sector
Software & Computer Services hidden% hidden% hidden% hidden% hidden%
Operating Profit Margin, Industry
Technology hidden% hidden% hidden% hidden% hidden%

Source: Based on data from Alphabet Inc. Annual Reports

2017 Calculations

1 Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × hidden ÷ hidden = hidden%

Ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Alphabet Inc.'s operating profit margin improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Net Profit Margin

Alphabet Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net income hidden hidden hidden hidden hidden
Revenues hidden hidden hidden hidden hidden
Ratio
Net profit margin1 hidden% hidden% hidden% hidden% hidden%
Benchmarks
Net Profit Margin, Competitors
Adobe Systems Inc. hidden% hidden% hidden% hidden% hidden%
Facebook Inc. hidden% hidden% hidden% hidden% hidden%
International Business Machines Corp. hidden% hidden% hidden% hidden% hidden%
Microsoft Corp. hidden% hidden% hidden% hidden% hidden%
Oracle Corp. hidden% hidden% hidden% hidden% hidden%
salesforce.com inc. hidden% hidden% hidden% hidden% hidden%
Net Profit Margin, Sector
Software & Computer Services hidden% hidden% hidden% hidden% hidden%
Net Profit Margin, Industry
Technology hidden% hidden% hidden% hidden% hidden%

Source: Based on data from Alphabet Inc. Annual Reports

2017 Calculations

1 Net profit margin = 100 × Net income ÷ Revenues
= 100 × hidden ÷ hidden = hidden%

Ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Alphabet Inc.'s net profit margin deteriorated from 2015 to 2016 and from 2016 to 2017.

Return on Equity (ROE)

Alphabet Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net income hidden hidden hidden hidden hidden
Stockholders' equity hidden hidden hidden hidden hidden
Ratio
ROE1 hidden% hidden% hidden% hidden% hidden%
Benchmarks
ROE, Competitors
Adobe Systems Inc. hidden% hidden% hidden% hidden% hidden%
Facebook Inc. hidden% hidden% hidden% hidden% hidden%
International Business Machines Corp. hidden% hidden% hidden% hidden% hidden%
Microsoft Corp. hidden% hidden% hidden% hidden% hidden%
Oracle Corp. hidden% hidden% hidden% hidden% hidden%
salesforce.com inc. hidden% hidden% hidden% hidden% hidden%
ROE, Sector
Software & Computer Services hidden% hidden% hidden% hidden% hidden%
ROE, Industry
Technology hidden% hidden% hidden% hidden% hidden%

Source: Based on data from Alphabet Inc. Annual Reports

2017 Calculations

1 ROE = 100 × Net income ÷ Stockholders' equity
= 100 × hidden ÷ hidden = hidden%

Ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders' equity. Alphabet Inc.'s ROE improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.

Return on Assets (ROA)

Alphabet Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Selected Financial Data (USD $ in millions)
Net income hidden hidden hidden hidden hidden
Total assets hidden hidden hidden hidden hidden
Ratio
ROA1 hidden% hidden% hidden% hidden% hidden%
Benchmarks
ROA, Competitors
Adobe Systems Inc. hidden% hidden% hidden% hidden% hidden%
Facebook Inc. hidden% hidden% hidden% hidden% hidden%
International Business Machines Corp. hidden% hidden% hidden% hidden% hidden%
Microsoft Corp. hidden% hidden% hidden% hidden% hidden%
Oracle Corp. hidden% hidden% hidden% hidden% hidden%
salesforce.com inc. hidden% hidden% hidden% hidden% hidden%
ROA, Sector
Software & Computer Services hidden% hidden% hidden% hidden% hidden%
ROA, Industry
Technology hidden% hidden% hidden% hidden% hidden%

Source: Based on data from Alphabet Inc. Annual Reports

2017 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × hidden ÷ hidden = hidden%

Ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Alphabet Inc.'s ROA improved from 2015 to 2016 but then deteriorated significantly from 2016 to 2017.