Alphabet Inc., adjustment to net income

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income (as reported)	100,118)	73,795)	59,972)	76,033)	40,269)
Add: Net change in available-for-sale investments, net of income tax	666)	2,512)	(3,713)	(1,376)	800)
Net income (adjusted)	100,784)	76,307)	56,259)	74,657)	41,069)

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Alphabet Inc., adjusted profitability ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	28.60%	24.01%	21.20%	29.51%	22.06%
Adjusted net profit margin	28.79%	24.82%	19.89%	28.98%	22.50%
Return on Equity (ROE)
Reported ROE	30.80%	26.04%	23.41%	30.22%	18.09%
Adjusted ROE	31.00%	26.93%	21.96%	29.67%	18.45%
Return on Assets (ROA)
Reported ROA	22.24%	18.34%	16.42%	21.16%	12.60%
Adjusted ROA	22.38%	18.96%	15.40%	20.78%	12.85%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Alphabet Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Alphabet Inc. adjusted ROE improved from 2022 to 2023 and from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Alphabet Inc. adjusted ROA improved from 2022 to 2023 and from 2023 to 2024.

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	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)
Revenues	350,018)	307,394)	282,836)	257,637)	182,527)
Profitability Ratio
Net profit margin¹	28.60%	24.01%	21.20%	29.51%	22.06%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	100,784)	76,307)	56,259)	74,657)	41,069)
Revenues	350,018)	307,394)	282,836)	257,637)	182,527)
Profitability Ratio
Adjusted net profit margin²	28.79%	24.82%	19.89%	28.98%	22.50%

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenues
= 100 × 100,118 ÷ 350,018 = 28.60%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenues
= 100 × 100,784 ÷ 350,018 = 28.79%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Alphabet Inc. adjusted net profit margin ratio improved from 2022 to 2023 and from 2023 to 2024.

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	100,784)	76,307)	56,259)	74,657)	41,069)
Stockholders’ equity	325,084)	283,379)	256,144)	251,635)	222,544)
Profitability Ratio
Adjusted ROE²	31.00%	26.93%	21.96%	29.67%	18.45%

2024 Calculations

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

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 100,784 ÷ 325,084 = 31.00%

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

	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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in millions)
Adjusted net income	100,784)	76,307)	56,259)	74,657)	41,069)
Total assets	450,256)	402,392)	365,264)	359,268)	319,616)
Profitability Ratio
Adjusted ROA²	22.38%	18.96%	15.40%	20.78%	12.85%

2024 Calculations

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

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 100,784 ÷ 450,256 = 22.38%

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

Alphabet Inc. (NASDAQ:GOOG)

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