Stock Analysis on Net
Stock Analysis on Net

Alphabet Inc. (NASDAQ:GOOG)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Adjustments to Financial Statements: Removal of Goodwill

Alphabet Inc., adjustments to financial statements

US$ in millions

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported) 450,256 402,392 365,264 359,268 319,616
Less: Goodwill 31,885 29,198 28,960 22,956 21,175
Total assets (adjusted) 418,371 373,194 336,304 336,312 298,441
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 325,084 283,379 256,144 251,635 222,544
Less: Goodwill 31,885 29,198 28,960 22,956 21,175
Stockholders’ equity (adjusted) 293,199 254,181 227,184 228,679 201,369

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Alphabet Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Alphabet Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total Asset Turnover
Reported total asset turnover 0.78 0.76 0.77 0.72 0.57
Adjusted total asset turnover 0.84 0.82 0.84 0.77 0.61
Financial Leverage
Reported financial leverage 1.39 1.42 1.43 1.43 1.44
Adjusted financial leverage 1.43 1.47 1.48 1.47 1.48
Return on Equity (ROE)
Reported ROE 30.80% 26.04% 23.41% 30.22% 18.09%
Adjusted ROE 34.15% 29.03% 26.40% 33.25% 20.00%
Return on Assets (ROA)
Reported ROA 22.24% 18.34% 16.42% 21.16% 12.60%
Adjusted ROA 23.93% 19.77% 17.83% 22.61% 13.49%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Alphabet Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Alphabet Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Alphabet Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Alphabet Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

Alphabet Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Revenues 350,018 307,394 282,836 257,637 182,527
Total assets 450,256 402,392 365,264 359,268 319,616
Activity Ratio
Total asset turnover1 0.78 0.76 0.77 0.72 0.57
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Revenues 350,018 307,394 282,836 257,637 182,527
Adjusted total assets 418,371 373,194 336,304 336,312 298,441
Activity Ratio
Adjusted total asset turnover2 0.84 0.82 0.84 0.77 0.61

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 350,018 ÷ 450,256 = 0.78

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 350,018 ÷ 418,371 = 0.84

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Alphabet Inc. adjusted total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 not reaching 2022 level.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Total assets 450,256 402,392 365,264 359,268 319,616
Stockholders’ equity 325,084 283,379 256,144 251,635 222,544
Solvency Ratio
Financial leverage1 1.39 1.42 1.43 1.43 1.44
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets 418,371 373,194 336,304 336,312 298,441
Adjusted stockholders’ equity 293,199 254,181 227,184 228,679 201,369
Solvency Ratio
Adjusted financial leverage2 1.43 1.47 1.48 1.47 1.48

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 450,256 ÷ 325,084 = 1.39

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 418,371 ÷ 293,199 = 1.43

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Alphabet Inc. adjusted financial leverage ratio decreased from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 100,118 73,795 59,972 76,033 40,269
Stockholders’ equity 325,084 283,379 256,144 251,635 222,544
Profitability Ratio
ROE1 30.80% 26.04% 23.41% 30.22% 18.09%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 100,118 73,795 59,972 76,033 40,269
Adjusted stockholders’ equity 293,199 254,181 227,184 228,679 201,369
Profitability Ratio
Adjusted ROE2 34.15% 29.03% 26.40% 33.25% 20.00%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 100,118 ÷ 325,084 = 30.80%

2 Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 100,118 ÷ 293,199 = 34.15%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Alphabet Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
As Reported
Selected Financial Data (US$ in millions)
Net income 100,118 73,795 59,972 76,033 40,269
Total assets 450,256 402,392 365,264 359,268 319,616
Profitability Ratio
ROA1 22.24% 18.34% 16.42% 21.16% 12.60%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income 100,118 73,795 59,972 76,033 40,269
Adjusted total assets 418,371 373,194 336,304 336,312 298,441
Profitability Ratio
Adjusted ROA2 23.93% 19.77% 17.83% 22.61% 13.49%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

2024 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 100,118 ÷ 450,256 = 22.24%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 100,118 ÷ 418,371 = 23.93%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Alphabet Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.