Stock Analysis on Net
Stock Analysis on Net

Alphabet Inc. (NASDAQ:GOOG)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Alphabet Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Activity Ratio
Total Asset Turnover
Reported 0.78 0.76 0.77 0.72 0.57
Adjusted 0.81 0.79 0.79 0.72 0.57
Liquidity Ratio
Current Ratio
Reported 1.84 2.10 2.38 2.93 3.07
Adjusted 1.96 2.22 2.53 3.10 3.22
Solvency Ratios
Debt to Equity
Reported 0.05 0.05 0.06 0.06 0.07
Adjusted 0.10 0.11 0.12 0.11 0.12
Debt to Capital
Reported 0.05 0.05 0.06 0.06 0.06
Adjusted 0.09 0.10 0.10 0.10 0.11
Financial Leverage
Reported 1.39 1.42 1.43 1.43 1.44
Adjusted 1.38 1.41 1.41 1.38 1.40
Profitability Ratios
Net Profit Margin
Reported 28.60% 24.01% 21.20% 29.51% 22.06%
Adjusted 27.22% 22.68% 16.47% 29.49% 24.41%
Return on Equity (ROE)
Reported 30.80% 26.04% 23.41% 30.22% 18.09%
Adjusted 30.28% 25.16% 18.19% 29.32% 19.55%
Return on Assets (ROA)
Reported 22.24% 18.34% 16.42% 21.16% 12.60%
Adjusted 22.01% 17.86% 12.94% 21.26% 14.01%

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 improved from 2022 to 2023 and from 2023 to 2024.
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Alphabet Inc. adjusted current ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Alphabet Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 and from 2023 to 2024.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Alphabet Inc. adjusted debt-to-capital ratio improved from 2022 to 2023 and from 2023 to 2024.
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 increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total 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 adjusted total 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 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
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
Selected Financial Data (US$ in millions)
Adjusted revenues2 350,970 307,935 283,520 258,436 183,285
Adjusted total assets3 433,955 390,994 360,757 358,534 319,321
Activity Ratio
Adjusted total asset turnover4 0.81 0.79 0.79 0.72 0.57

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).

1 2024 Calculation
Total asset turnover = Revenues ÷ Total assets
= 350,018 ÷ 450,256 = 0.78

2 Adjusted revenues. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted total asset turnover = Adjusted revenues ÷ Adjusted total assets
= 350,970 ÷ 433,955 = 0.81

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 improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Current Ratio

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Current assets 163,711 171,530 164,795 188,143 174,296
Current liabilities 89,122 81,814 69,300 64,254 56,834
Liquidity Ratio
Current ratio1 1.84 2.10 2.38 2.93 3.07
Adjusted
Selected Financial Data (US$ in millions)
Adjusted current assets2 164,590 172,301 165,549 188,693 175,085
Adjusted current liabilities3 84,086 77,677 65,392 60,966 54,291
Liquidity Ratio
Adjusted current ratio4 1.96 2.22 2.53 3.10 3.22

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).

1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= 163,711 ÷ 89,122 = 1.84

2 Adjusted current assets. See details »

3 Adjusted current liabilities. See details »

4 2024 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 164,590 ÷ 84,086 = 1.96

Liquidity ratio Description The company
Adjusted current ratio A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities. Alphabet Inc. adjusted current ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Adjusted Debt to Equity

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Total debt 15,859 14,616 14,999 14,930 15,032
Stockholders’ equity 325,084 283,379 256,144 251,635 222,544
Solvency Ratio
Debt to equity1 0.05 0.05 0.06 0.06 0.07
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 30,437 29,867 29,977 28,508 27,872
Adjusted stockholders’ equity3 315,503 277,514 256,658 259,981 228,834
Solvency Ratio
Adjusted debt to equity4 0.10 0.11 0.12 0.11 0.12

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).

1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 15,859 ÷ 325,084 = 0.05

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 30,437 ÷ 315,503 = 0.10

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Alphabet Inc. adjusted debt-to-equity ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Debt to Capital

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Reported
Selected Financial Data (US$ in millions)
Total debt 15,859 14,616 14,999 14,930 15,032
Total capital 340,943 297,995 271,143 266,565 237,576
Solvency Ratio
Debt to capital1 0.05 0.05 0.06 0.06 0.06
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 30,437 29,867 29,977 28,508 27,872
Adjusted total capital3 345,940 307,381 286,635 288,489 256,706
Solvency Ratio
Adjusted debt to capital4 0.09 0.10 0.10 0.10 0.11

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).

1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 15,859 ÷ 340,943 = 0.05

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2024 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 30,437 ÷ 345,940 = 0.09

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Alphabet Inc. adjusted debt-to-capital ratio improved from 2022 to 2023 and from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Selected Financial Data (US$ in millions)
Adjusted total assets2 433,955 390,994 360,757 358,534 319,321
Adjusted stockholders’ equity3 315,503 277,514 256,658 259,981 228,834
Solvency Ratio
Adjusted financial leverage4 1.38 1.41 1.41 1.38 1.40

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).

1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 450,256 ÷ 325,084 = 1.39

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 433,955 ÷ 315,503 = 1.38

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 increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
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
Selected Financial Data (US$ in millions)
Adjusted net income2 95,524 69,825 46,682 76,220 44,743
Adjusted revenues3 350,970 307,935 283,520 258,436 183,285
Profitability Ratio
Adjusted net profit margin4 27.22% 22.68% 16.47% 29.49% 24.41%

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).

1 2024 Calculation
Net profit margin = 100 × Net income ÷ Revenues
= 100 × 100,118 ÷ 350,018 = 28.60%

2 Adjusted net income. See details »

3 Adjusted revenues. See details »

4 2024 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted revenues
= 100 × 95,524 ÷ 350,970 = 27.22%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Alphabet Inc. adjusted net profit margin ratio improved 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
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
Selected Financial Data (US$ in millions)
Adjusted net income2 95,524 69,825 46,682 76,220 44,743
Adjusted stockholders’ equity3 315,503 277,514 256,658 259,981 228,834
Profitability Ratio
Adjusted ROE4 30.28% 25.16% 18.19% 29.32% 19.55%

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).

1 2024 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 100,118 ÷ 325,084 = 30.80%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2024 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 95,524 ÷ 315,503 = 30.28%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total 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
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
Selected Financial Data (US$ in millions)
Adjusted net income2 95,524 69,825 46,682 76,220 44,743
Adjusted total assets3 433,955 390,994 360,757 358,534 319,321
Profitability Ratio
Adjusted ROA4 22.01% 17.86% 12.94% 21.26% 14.01%

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).

1 2024 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 100,118 ÷ 450,256 = 22.24%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2024 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 95,524 ÷ 433,955 = 22.01%

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