Financial statement analysis and common stock valuation

Income Statement
Quarterly Data

The income statement (statement of earnings) reports on the performance of Alphabet Inc., the result of its operating activities.

Analysis of Revenues

• Revenues as Reported

Aggregate Accruals

Financial reporting quality relates to the accuracy with which Alphabet Inc. reported financial statements reflect its operating performance and to their usefulness for forecasting future cash flows.
Aggregate accruals deriving measures of the accrual component of Alphabet Inc. earnings.

• Balance-Sheet-Based Accruals Ratio
• Cash-Flow-Statement-Based Accruals Ratio

Dividend Discount Model (DDM)

The dividend discount model (DDM) is a technique for estimating the value of a share of Alphabet Inc. common stock issue as the present value of all future dividends.

• Intrinsic Stock Value (Valuation Summary)
• Required Rate of Return (r)
• Dividend Growth Rate (g)

Analysis of Solvency Ratios
Quarterly Data

Examines Alphabet Inc. capital structure in terms of the mix of its financing sources and the ability of the firm to satisfy its longer-term debt and investment obligations.

• Solvency Ratios (Summary)
• Debt to Equity
• Debt to Equity (including Operating Lease Liability)
• Debt to Capital
• Debt to Capital (including Operating Lease Liability)
• Debt to Assets
• Debt to Assets (including Operating Lease Liability)
• Financial Leverage

Analysis of Liquidity Ratios
Quarterly Data

Measures the adequacy of a Alphabet Inc. cash resources to meet its near-term cash obligations.

• Liquidity Ratios (Summary)
• Current Ratio
• Quick Ratio
• Cash Ratio

Analysis of Reportable Segments

Alphabet Inc. operates in 3 segments: Google Services; Google Cloud; and Other Bets.

• Segment Profit Margin
• Revenues
• Operating income (loss)

Analysis of Long-term (Investment) Activity Ratios

Measures how efficiently Alphabet Inc. generates revenues from its investments in fixed or total assets.

• Long-term Activity Ratios (Summary)
• Net Fixed Asset Turnover
• Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
• Total Asset Turnover
• Equity Turnover

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

An approach to decomposing Alphabet Inc. return on equity, return on assets, and net profit margin ratio as the product of other financial ratios.

• Two-Component Disaggregation of ROE
• Three-Component Disaggregation of ROE
• Five-Component Disaggregation of ROE
• Two-Component Disaggregation of ROA
• Four-Component Disaggregation of ROA
• Disaggregation of Net Profit Margin

Common-Size Balance Sheet: Assets

Assets components shown as percentage of total assets.

Balance Sheet: Assets
Quarterly Data

The assets reports major classes and amounts of resources owned or controlled by Alphabet Inc..

Cash Flow Statement
Quarterly Data

The cash flow statement provides information about Alphabet Inc. cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on Alphabet Inc. balance sheet.