Alphabet Inc. (NASDAQ:GOOG)

The financial performance indicators demonstrate a fluctuating pattern over the five-year period. Net income, Earnings Before Tax (EBT), Earnings Before Interest and Tax (EBIT), and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) all exhibit varying degrees of growth and contraction.

Overall Trend

A general upward trend is discernible across all presented metrics from 2021 to 2025. However, this progression is not linear, with a noticeable decline observed between 2021 and 2022 before a recovery and subsequent acceleration in later years.

EBITDA Performance

EBITDA began at US$101,353 million in 2021, decreased to US$85,160 million in 2022, and then increased steadily to US$97,971 million in 2023. This growth continued, reaching US$135,394 million in 2024 and culminating in US$180,698 million in 2025. The 2024-2025 increase represents the most substantial period of growth within the observed timeframe.

Relationship between Metrics

EBITDA consistently exceeds EBIT, EBT, and Net Income, as expected, due to the addition of depreciation and amortization expenses. The difference between these metrics remains relatively stable year-over-year, suggesting consistent accounting practices and expense structures. The proximity of EBIT and EBT values indicates minimal interest expense relative to earnings.

Year-over-Year Changes

The largest year-over-year decrease occurred between 2021 and 2022 for all metrics. Conversely, the most significant year-over-year increase was observed between 2024 and 2025. The rate of increase accelerated in the latter part of the period, indicating improving profitability and operational efficiency.

In summary, while a dip in performance occurred in 2022, the overall trajectory indicates a positive trend in profitability, culminating in substantial growth by 2025. The consistent relationship between the presented earnings metrics suggests a stable underlying business model.

The Enterprise Value to EBITDA ratio exhibited fluctuations over the five-year period. Initial observation reveals a decrease followed by an increase in the ratio, suggesting shifts in the market’s assessment of the company’s value relative to its operating performance.

Enterprise Value (EV)

Enterprise Value decreased significantly from 2021 to 2022, falling from US$1,832,285 million to US$1,248,790 million. A subsequent recovery was observed in 2023, reaching US$1,666,699 million, and continued upward through 2025, culminating in US$3,932,299 million. This indicates a substantial increase in the company’s total value as defined by market capitalization plus debt, minus cash.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA experienced a decline from US$101,353 million in 2021 to US$85,160 million in 2022. It then demonstrated a recovery, increasing to US$97,971 million in 2023. Continued growth was apparent in subsequent years, reaching US$135,394 million in 2024 and US$180,698 million in 2025. This suggests improving operational profitability over the period.

EV/EBITDA Ratio

The EV/EBITDA ratio began at 18.08 in 2021, decreased to 14.66 in 2022, and then rose to 17.01 in 2023. A slight decrease to 16.81 was noted in 2024, followed by a more pronounced increase to 21.76 in 2025. The initial decline in the ratio coincided with a larger decrease in Enterprise Value than in EBITDA. The subsequent increases suggest that Enterprise Value grew at a faster rate than EBITDA, potentially indicating increased investor optimism or a premium placed on future growth prospects. The ratio’s final value in 2025 represents the highest point within the observed period.

In summary, while both Enterprise Value and EBITDA experienced fluctuations, the EV/EBITDA ratio’s trajectory indicates a changing valuation dynamic. The increasing ratio in later years suggests a potentially higher valuation relative to operating performance, warranting further investigation into the underlying drivers of this trend.