Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Alphabet Inc., long-term (investment) activity ratios
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).
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Alphabet Inc. net fixed asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Alphabet Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2022 to 2023 and from 2023 to 2024. |
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Alphabet Inc. total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Alphabet Inc. equity turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Net Fixed Asset Turnover
Alphabet Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 350,018) | 307,394) | 282,836) | 257,637) | 182,527) | |
| Property and equipment, net | 171,036) | 134,345) | 112,668) | 97,599) | 84,749) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 2.05 | 2.29 | 2.51 | 2.64 | 2.15 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Comcast Corp. | 1.98 | 2.04 | 2.19 | 2.15 | 1.99 | |
| Meta Platforms Inc. | 1.36 | 1.40 | 1.47 | 2.04 | 1.88 | |
| Netflix Inc. | 24.47 | 22.61 | 22.61 | 22.44 | 26.03 | |
| Walt Disney Co. | 2.45 | 2.52 | 2.44 | 2.05 | 2.02 | |
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | 1.95 | 2.10 | 2.24 | 2.42 | 2.14 | |
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | 1.65 | 1.68 | 1.73 | 1.90 | 1.72 | |
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 fixed asset turnover = Revenues ÷ Property and equipment, net
= 350,018 ÷ 171,036 = 2.05
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover | An activity ratio calculated as total revenue divided by net fixed assets. | Alphabet Inc. net fixed asset turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Alphabet Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 350,018) | 307,394) | 282,836) | 257,637) | 182,527) | |
| Property and equipment, net | 171,036) | 134,345) | 112,668) | 97,599) | 84,749) | |
| Operating lease assets | 13,588) | 14,091) | 14,381) | 12,959) | 12,211) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 184,624) | 148,436) | 127,049) | 110,558) | 96,960) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.90 | 2.07 | 2.23 | 2.33 | 1.88 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Comcast Corp. | 1.82 | 1.86 | 1.98 | 1.92 | 1.86 | |
| Meta Platforms Inc. | 1.21 | 1.23 | 1.26 | 1.69 | 1.56 | |
| Netflix Inc. | 10.55 | 9.45 | 8.72 | 7.88 | 8.34 | |
| Walt Disney Co. | 2.25 | 2.25 | 2.18 | 1.83 | 1.81 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | 1.77 | 1.87 | 1.97 | 2.09 | 1.87 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | 1.41 | 1.42 | 1.43 | 1.54 | 1.41 | |
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 fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 350,018 ÷ 184,624 = 1.90
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Net fixed asset turnover (including operating lease, right-of-use asset) | An activity ratio calculated as total revenue divided by net fixed assets (including operating lease, right-of-use asset). | Alphabet Inc. net fixed asset turnover ratio (with operating lease, right-of-use asset) deteriorated from 2022 to 2023 and from 2023 to 2024. |
Total Asset Turnover
Alphabet Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.78 | 0.76 | 0.77 | 0.72 | 0.57 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Comcast Corp. | 0.46 | 0.46 | 0.47 | 0.42 | 0.38 | |
| Meta Platforms Inc. | 0.60 | 0.59 | 0.63 | 0.71 | 0.54 | |
| Netflix Inc. | 0.73 | 0.69 | 0.65 | 0.67 | 0.64 | |
| Walt Disney Co. | 0.47 | 0.43 | 0.41 | 0.33 | 0.32 | |
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | 0.62 | 0.60 | 0.60 | 0.56 | 0.47 | |
| Total Asset Turnover, Industry | ||||||
| Communication Services | 0.50 | 0.48 | 0.47 | 0.45 | 0.41 | |
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
Total asset turnover = Revenues ÷ Total assets
= 350,018 ÷ 450,256 = 0.78
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Total asset turnover | An activity ratio calculated as total revenue divided by total assets. | Alphabet Inc. total asset turnover ratio deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level. |
Equity Turnover
Alphabet Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenues | 350,018) | 307,394) | 282,836) | 257,637) | 182,527) | |
| Stockholders’ equity | 325,084) | 283,379) | 256,144) | 251,635) | 222,544) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 1.08 | 1.08 | 1.10 | 1.02 | 0.82 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Comcast Corp. | 1.45 | 1.47 | 1.50 | 1.21 | 1.15 | |
| Meta Platforms Inc. | 0.90 | 0.88 | 0.93 | 0.94 | 0.67 | |
| Netflix Inc. | 1.58 | 1.64 | 1.52 | 1.87 | 2.26 | |
| Walt Disney Co. | 0.91 | 0.90 | 0.87 | 0.76 | 0.78 | |
| Equity Turnover, Sector | ||||||
| Media & Entertainment | 1.07 | 1.07 | 1.10 | 1.02 | 0.86 | |
| Equity Turnover, Industry | ||||||
| Communication Services | 1.13 | 1.14 | 1.16 | 1.09 | 1.00 | |
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).
1 2024 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= 350,018 ÷ 325,084 = 1.08
2 Click competitor name to see calculations.
| Long-term activity ratio | Description | The company |
|---|---|---|
| Equity turnover | An activity ratio calculated as total revenue divided by shareholders’ equity. | Alphabet Inc. equity turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024. |