Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Alphabet Inc., profitability ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The profitability ratios demonstrate a consistent upward trend over the observed period, spanning from March 31, 2022, to December 31, 2025. This improvement is evident across all measured metrics – gross profit margin, operating profit margin, net profit margin, return on equity, and return on assets. The rate of increase varies between ratios, with some exhibiting more pronounced gains than others, particularly in the later years of the period.
- Gross Profit Margin
- The gross profit margin experienced a steady increase throughout the period, rising from 56.93% in March 2022 to 59.65% in December 2025. While fluctuations were minimal in the earlier quarters, the rate of growth accelerated from September 2023 onwards, indicating improved cost management or pricing strategies.
- Operating Profit Margin
- The operating profit margin followed a similar trajectory, albeit with more noticeable quarterly variations. It began at 30.47% in March 2022 and reached 32.03% by December 2025. A significant dip was observed between March 2022 and December 2022, followed by a recovery and continued growth, suggesting effective control of operating expenses after an initial period of pressure.
- Net Profit Margin
- The net profit margin exhibited the most substantial improvement among the measured ratios. Starting at 27.57% in March 2022, it climbed to 32.81% in December 2025. The growth was particularly strong from June 2023, indicating increasing efficiency in managing all aspects of profitability, including non-operating items.
- Return on Equity (ROE)
- Return on equity demonstrated a clear upward trend, increasing from 29.35% in March 2022 to 31.83% in December 2025. The growth was relatively consistent, with a slight plateau observed in the first half of 2025, before resuming its upward momentum. This suggests increasing effectiveness in generating profits from shareholder investments.
- Return on Assets (ROA)
- The return on assets also showed a positive trend, rising from 20.87% in March 2022 to 22.20% in December 2025. Similar to ROE, the growth was generally consistent, indicating improved efficiency in utilizing assets to generate earnings. The rate of increase was slightly slower compared to the profit margins and ROE, potentially due to asset base expansion.
Overall, the observed trends suggest strengthening financial performance and increasing profitability across all key metrics. The consistent improvements in margins and returns indicate effective management strategies and a positive outlook for future financial health.
Return on Sales
Return on Investment
Gross Profit Margin
Alphabet Inc., gross profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Gross profit | 68,062) | 60,977) | 57,389) | 53,873) | 55,856) | 51,794) | 49,235) | 46,827) | 48,735) | 43,464) | 42,688) | 39,175) | 40,706) | 37,934) | 39,581) | 38,412) | |||||
| Revenues | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Gross profit margin1 | 59.65% | 59.17% | 58.94% | 58.59% | 58.20% | 57.84% | 57.35% | 57.12% | 56.63% | 55.88% | 55.44% | 55.30% | 55.38% | 56.10% | 56.74% | 56.93% | |||||
| Benchmarks | |||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||
| Comcast Corp. | 71.75% | 71.88% | 70.82% | 70.36% | 70.08% | 69.73% | 70.53% | 70.00% | 69.76% | 69.96% | 69.65% | 69.49% | 68.53% | 68.41% | 67.34% | 66.64% | |||||
| Meta Platforms Inc. | 82.00% | 82.00% | 81.95% | 81.75% | 81.67% | 81.43% | 81.40% | 81.44% | 80.76% | 79.05% | 78.34% | 78.40% | 78.35% | 80.31% | 80.47% | 80.34% | |||||
| Netflix Inc. | 48.49% | 48.09% | 48.49% | 46.92% | 46.06% | 45.25% | 43.84% | 43.06% | 41.54% | 39.49% | 38.77% | 38.30% | 39.37% | 39.62% | 40.63% | 41.62% | |||||
| Trade Desk Inc. | — | 78.81% | 79.41% | 80.11% | 80.69% | 81.06% | 81.23% | 81.29% | 81.21% | 81.18% | 81.46% | 81.64% | 82.18% | 81.90% | 81.88% | 81.82% | |||||
| Walt Disney Co. | 37.76% | 37.61% | 37.10% | 36.74% | 35.75% | 35.36% | 35.03% | 34.33% | 33.41% | 32.77% | 33.04% | 33.40% | 34.24% | 34.43% | 33.79% | 34.34% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Gross profit margin = 100
× (Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025)
÷ (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
= 100 × (68,062 + 60,977 + 57,389 + 53,873)
÷ (113,828 + 102,346 + 96,428 + 90,234)
= 59.65%
2 Click competitor name to see calculations.
The gross profit margin exhibited a generally increasing trend over the observed period, spanning from March 31, 2022, to December 31, 2025. While fluctuations occurred, the overall trajectory indicates improving profitability from revenue generation. Initial values were in the mid-56% range, culminating in a margin approaching 60% by the end of the analyzed timeframe.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The gross profit margin began at 56.93% in March 2022. A slight decline was observed through September 2022, reaching 56.10%. A modest recovery followed in December 2022, with the margin settling at 55.38%. This initial period demonstrates relative stability with minor variations.
- Growth Phase (Mar 31, 2023 – Dec 31, 2023)
- From March 2023 through December 2023, a consistent upward trend in gross profit margin is apparent. Starting at 55.30%, the margin increased to 56.63% by the end of the year. This suggests improved cost management or pricing strategies during this period.
- Continued Improvement (Mar 31, 2024 – Dec 31, 2024)
- The upward trend continued into 2024, with the gross profit margin rising from 57.12% in March to 58.20% in December. This indicates sustained positive momentum in profitability.
- Peak Performance (Mar 31, 2025 – Dec 31, 2025)
- The most significant gains in gross profit margin occurred in 2025. The margin increased from 58.59% in March to 59.65% by December. This represents the highest point in the observed period and suggests successful implementation of strategies to enhance profitability.
The gross profit figures demonstrate a corresponding increase alongside the margin, indicating that revenue growth is contributing to the overall improvement in gross profit. The consistent rise in the gross profit margin throughout the period suggests effective operational efficiency and pricing power.
Operating Profit Margin
Alphabet Inc., operating profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Income from operations | 35,934) | 31,228) | 31,271) | 30,606) | 30,972) | 28,521) | 27,425) | 25,472) | 23,697) | 21,343) | 21,838) | 17,415) | 18,160) | 17,135) | 19,453) | 20,094) | |||||
| Revenues | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Operating profit margin1 | 32.03% | 32.19% | 32.68% | 32.67% | 32.11% | 30.93% | 29.83% | 29.03% | 27.42% | 26.51% | 25.75% | 25.35% | 26.46% | 27.85% | 29.65% | 30.47% | |||||
| Benchmarks | |||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||
| Comcast Corp. | 16.71% | 17.98% | 18.12% | 18.73% | 18.83% | 18.52% | 19.32% | 19.25% | 19.18% | 19.33% | 11.99% | 11.75% | 11.56% | 11.82% | 18.25% | 17.76% | |||||
| Meta Platforms Inc. | 41.44% | 43.23% | 44.02% | 42.92% | 42.18% | 39.94% | 39.25% | 37.38% | 34.66% | 28.96% | 23.80% | 23.56% | 24.82% | 29.74% | 33.41% | 36.68% | |||||
| Netflix Inc. | 29.49% | 29.14% | 29.51% | 27.71% | 26.71% | 25.65% | 23.82% | 22.54% | 20.62% | 18.35% | 17.51% | 16.85% | 17.82% | 18.16% | 19.13% | 20.41% | |||||
| Trade Desk Inc. | — | 18.91% | 17.73% | 17.63% | 17.47% | 16.29% | 14.05% | 12.29% | 10.30% | 8.53% | 8.50% | 6.53% | 7.20% | -0.80% | 2.86% | 7.74% | |||||
| Walt Disney Co. | 13.78% | 12.69% | 12.64% | 10.07% | 9.11% | 9.08% | 5.40% | 6.87% | 5.74% | 5.22% | 8.02% | 7.42% | 7.90% | 8.01% | 7.08% | 6.93% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Operating profit margin = 100
× (Income from operationsQ4 2025
+ Income from operationsQ3 2025
+ Income from operationsQ2 2025
+ Income from operationsQ1 2025)
÷ (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
= 100 × (35,934 + 31,228 + 31,271 + 30,606)
÷ (113,828 + 102,346 + 96,428 + 90,234)
= 32.03%
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally increasing trend over the observed period, although with some fluctuations. Initial values indicated a margin around 30%, followed by a period of decline, and then a subsequent recovery and stabilization at a higher level.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The operating profit margin began at 30.47% in March 2022. A gradual decline was observed through the end of 2022, reaching a low of 26.46% in December 2022. This period coincided with relatively stable revenue figures, suggesting that the decline was primarily driven by changes in income from operations.
- Recovery and Stabilization (Mar 31, 2023 – Dec 31, 2024)
- Starting in March 2023, the operating profit margin began to recover. It increased from 25.35% to 32.11% by December 2024. This upward trend occurred alongside increasing revenues and a more substantial increase in income from operations, indicating improved operational efficiency and profitability. The margin demonstrated consistent growth during this phase.
- Recent Performance (Mar 31, 2025 – Dec 31, 2025)
- The operating profit margin remained relatively stable in the first half of 2025, fluctuating between 32.67% and 32.19%. A slight increase was noted in December 2025, reaching 32.03%. This suggests a period of sustained profitability, despite a moderate increase in revenues. The final value indicates a slight decrease from the peak observed earlier in the year, but remains at a historically high level.
- Overall Trend
- The overall trend demonstrates a positive trajectory for the operating profit margin. While a temporary decline was present in 2022, the margin has since shown significant improvement and has stabilized at a higher level than its initial value. This suggests effective cost management and/or increased pricing power.
Net Profit Margin
Alphabet Inc., net profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | 34,455) | 34,979) | 28,196) | 34,540) | 26,536) | 26,301) | 23,619) | 23,662) | 20,687) | 19,689) | 18,368) | 15,051) | 13,624) | 13,910) | 16,002) | 16,436) | |||||
| Revenues | 113,828) | 102,346) | 96,428) | 90,234) | 96,469) | 88,268) | 84,742) | 80,539) | 86,310) | 76,693) | 74,604) | 69,787) | 76,048) | 69,092) | 69,685) | 68,011) | |||||
| Profitability Ratio | |||||||||||||||||||||
| Net profit margin1 | 32.81% | 32.23% | 31.12% | 30.86% | 28.60% | 27.74% | 26.70% | 25.90% | 24.01% | 22.46% | 21.05% | 20.58% | 21.20% | 23.75% | 25.89% | 27.57% | |||||
| Benchmarks | |||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||
| Comcast Corp. | 16.17% | 18.33% | 18.44% | 12.71% | 13.09% | 11.92% | 12.46% | 12.64% | 12.66% | 12.53% | 5.40% | 4.71% | 4.42% | 4.46% | 11.54% | 11.96% | |||||
| Meta Platforms Inc. | 30.08% | 30.89% | 39.99% | 39.11% | 37.91% | 35.55% | 34.34% | 32.06% | 28.98% | 23.42% | 18.71% | 18.27% | 19.90% | 24.41% | 28.16% | 31.20% | |||||
| Netflix Inc. | 24.30% | 24.05% | 24.58% | 23.07% | 22.34% | 20.70% | 19.54% | 18.42% | 16.04% | 13.82% | 13.22% | 13.16% | 14.21% | 16.03% | 16.42% | 16.47% | |||||
| Trade Desk Inc. | — | 15.72% | 15.57% | 16.04% | 16.08% | 13.34% | 11.65% | 9.80% | 9.19% | 8.35% | 7.46% | 4.70% | 3.38% | -0.66% | 2.43% | 7.78% | |||||
| Walt Disney Co. | 13.14% | 12.22% | 9.47% | 6.07% | 5.44% | 5.31% | 1.90% | 3.36% | 2.65% | 2.56% | 4.74% | 3.93% | 3.80% | 3.87% | 3.46% | 4.22% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Net profit margin = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ (RevenuesQ4 2025
+ RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025)
= 100 × (34,455 + 34,979 + 28,196 + 34,540)
÷ (113,828 + 102,346 + 96,428 + 90,234)
= 32.81%
2 Click competitor name to see calculations.
The net profit margin exhibited a fluctuating pattern over the observed period, generally trending upwards. Initial values demonstrate a decline from the first quarter of 2022 through the final quarter of 2022, followed by a period of recovery and subsequent growth through the end of 2025.
- Initial Decline (Q1 2022 - Q4 2022)
- The net profit margin began at 27.57% in the first quarter of 2022. A consistent downward trend was then observed, decreasing to 21.20% by the fourth quarter of the same year. This suggests potential increases in costs or decreased pricing power during this period.
- Recovery and Growth (Q1 2023 - Q4 2025)
- Starting in the first quarter of 2023, the net profit margin began to recover, reaching 24.01% by the fourth quarter. This upward momentum continued into 2024, with the margin reaching 28.60% by the end of the year. The trend persisted through 2025, culminating in a net profit margin of 32.81% in the final quarter.
- Peak Performance
- The highest net profit margin recorded during the analyzed timeframe was 32.81% in the fourth quarter of 2025. This indicates improved operational efficiency, effective cost management, or increased revenue relative to costs during that period.
- Quarterly Fluctuations
- While the overall trend is positive, quarterly variations are present. For example, a slight decrease is visible between the first and second quarters of 2025, from 30.86% to 31.12%, followed by increases in subsequent quarters. These fluctuations suggest the influence of seasonal factors or specific business events on profitability.
Overall, the progression of the net profit margin indicates strengthening profitability over the analyzed period, despite some quarterly variability. The substantial increase from 21.20% in late 2022 to 32.81% in late 2025 represents a significant improvement in the company’s ability to convert revenue into profit.
Return on Equity (ROE)
Alphabet Inc., ROE calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | 34,455) | 34,979) | 28,196) | 34,540) | 26,536) | 26,301) | 23,619) | 23,662) | 20,687) | 19,689) | 18,368) | 15,051) | 13,624) | 13,910) | 16,002) | 16,436) | |||||
| Stockholders’ equity | 415,265) | 386,867) | 362,916) | 345,267) | 325,084) | 314,119) | 300,753) | 292,844) | 283,379) | 273,202) | 267,141) | 260,894) | 256,144) | 253,626) | 255,419) | 254,004) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROE1 | 31.83% | 32.12% | 31.85% | 32.15% | 30.80% | 30.01% | 29.15% | 28.14% | 26.04% | 24.43% | 22.82% | 22.46% | 23.41% | 26.41% | 28.20% | 29.35% | |||||
| Benchmarks | |||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||
| Comcast Corp. | 20.64% | 23.29% | 23.65% | 18.13% | 18.92% | 17.11% | 18.14% | 18.67% | 18.61% | 18.34% | 7.74% | 6.86% | 6.63% | 6.73% | 15.35% | 15.18% | |||||
| Meta Platforms Inc. | 27.83% | 30.16% | 36.66% | 36.01% | 34.14% | 33.76% | 32.81% | 30.60% | 25.53% | 20.81% | 16.82% | 17.18% | 18.45% | 23.23% | 26.74% | 30.30% | |||||
| Netflix Inc. | 41.26% | 40.19% | 41.07% | 38.58% | 35.21% | 34.25% | 32.08% | 30.12% | 26.27% | 20.47% | 18.60% | 19.24% | 21.62% | 24.57% | 26.71% | 28.54% | |||||
| Trade Desk Inc. | — | 16.86% | 15.48% | 15.17% | 13.33% | 11.74% | 10.53% | 9.29% | 8.27% | 7.09% | 6.24% | 3.98% | 2.52% | -0.51% | 1.90% | 6.10% | |||||
| Walt Disney Co. | 11.29% | 10.58% | 8.54% | 5.51% | 4.94% | 4.75% | 1.71% | 2.96% | 2.37% | 2.31% | 4.21% | 3.45% | 3.31% | 3.40% | 2.92% | 3.43% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
ROE = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Stockholders’ equity
= 100 × (34,455 + 34,979 + 28,196 + 34,540)
÷ 415,265 = 31.83%
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited a generally increasing trend over the observed period, although with some fluctuations. Initial values demonstrated a relatively high ROE, followed by a period of decline, and then a subsequent recovery and continued growth.
- Initial Decline (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, to December 31, 2022, the ROE experienced a consistent decline, moving from 29.35% to 23.41%. This decrease suggests a weakening in the profitability relative to shareholder equity during this timeframe. The decline occurred alongside fluctuations in net income, but was more pronounced than those fluctuations.
- Stabilization and Recovery (Mar 31, 2023 – Dec 31, 2023)
- The ROE stabilized and began to recover in the first half of 2023, reaching 22.82% by June 30, 2023. This was followed by further increases, culminating in 26.04% by December 31, 2023. This period indicates improved profitability relative to equity compared to the prior year.
- Continued Growth (Mar 31, 2024 – Dec 31, 2025)
- The ROE continued its upward trajectory from March 31, 2024, through December 31, 2025. The ROE increased from 28.14% to 31.83% over this period, reaching a high of 32.15% on March 31, 2025. This sustained growth suggests increasing efficiency in generating profits from shareholder investments. The rate of increase appears to be moderating towards the end of the period.
- Relationship to Net Income and Equity
- The ROE movements generally correlate with changes in net income. Increases in net income often coincide with increases in ROE, and vice versa. However, the impact of changes in stockholders’ equity also plays a significant role. While net income generally increased over the period, the growth in stockholders’ equity was substantial, which moderated the ROE increases. The ROE increase from 2024 to 2025 was driven by a larger increase in net income than in stockholders’ equity.
Overall, the ROE demonstrates a positive long-term trend, indicating improving profitability relative to equity. While short-term fluctuations were observed, the company has demonstrated an ability to enhance returns for shareholders over the analyzed period.
Return on Assets (ROA)
Alphabet Inc., ROA calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Net income | 34,455) | 34,979) | 28,196) | 34,540) | 26,536) | 26,301) | 23,619) | 23,662) | 20,687) | 19,689) | 18,368) | 15,051) | 13,624) | 13,910) | 16,002) | 16,436) | |||||
| Total assets | 595,281) | 536,469) | 502,053) | 475,374) | 450,256) | 430,266) | 414,770) | 407,350) | 402,392) | 396,711) | 383,044) | 369,491) | 365,264) | 358,255) | 355,185) | 357,096) | |||||
| Profitability Ratio | |||||||||||||||||||||
| ROA1 | 22.20% | 23.16% | 23.02% | 23.35% | 22.24% | 21.91% | 21.13% | 20.23% | 18.34% | 16.82% | 15.91% | 15.86% | 16.42% | 18.70% | 20.28% | 20.87% | |||||
| Benchmarks | |||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||
| Comcast Corp. | 7.34% | 8.28% | 8.36% | 5.87% | 6.08% | 5.44% | 5.75% | 5.85% | 5.81% | 5.80% | 2.48% | 2.18% | 2.09% | 2.12% | 5.26% | 5.25% | |||||
| Meta Platforms Inc. | 16.52% | 19.26% | 24.26% | 23.78% | 22.59% | 21.66% | 22.34% | 20.53% | 17.03% | 13.75% | 10.91% | 11.62% | 12.49% | 16.12% | 19.81% | 22.74% | |||||
| Netflix Inc. | 19.75% | 18.99% | 19.30% | 17.80% | 16.24% | 14.88% | 14.45% | 13.18% | 11.10% | 9.14% | 8.36% | 8.49% | 9.24% | 10.61% | 10.99% | 11.05% | |||||
| Trade Desk Inc. | — | 7.38% | 7.00% | 7.22% | 6.43% | 5.60% | 4.91% | 4.32% | 3.66% | 3.38% | 2.97% | 1.93% | 1.22% | -0.25% | 0.92% | 2.93% | |||||
| Walt Disney Co. | 6.28% | 5.88% | 4.55% | 2.85% | 2.53% | 2.41% | 0.87% | 1.51% | 1.15% | 1.11% | 2.01% | 1.64% | 1.54% | 1.54% | 1.31% | 1.52% | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
ROA = 100
× (Net incomeQ4 2025
+ Net incomeQ3 2025
+ Net incomeQ2 2025
+ Net incomeQ1 2025)
÷ Total assets
= 100 × (34,455 + 34,979 + 28,196 + 34,540)
÷ 595,281 = 22.20%
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a generally increasing trend over the observed period, though with notable fluctuations. Initial values demonstrated a strong performance, followed by a period of decline, and then a subsequent recovery and sustained growth.
- Initial Performance & Decline (Mar 31, 2022 – Dec 31, 2022)
- The ROA began at 20.87% in March 2022, indicating a robust level of profitability relative to the company’s assets. A consistent, though gradual, downward trend was then observed through the end of 2022, culminating in a low of 16.42% in December 2022. This decline suggests a potential decrease in efficiency in utilizing assets to generate profit during this timeframe.
- Stabilization & Recovery (Mar 31, 2023 – Dec 31, 2023)
- From March 2023 through December 2023, the ROA demonstrated a period of stabilization and recovery. While initial values remained relatively flat, a clear upward trajectory emerged in the latter half of the year, reaching 18.34% by December 2023. This indicates a potential improvement in asset utilization and profitability.
- Sustained Growth (Mar 31, 2024 – Dec 31, 2025)
- The ROA continued its upward trend from March 2024 through December 2025. Values consistently increased, reaching 22.24% in December 2024 and 22.20% in December 2025. The ROA peaked at 23.35% in March 2025, before a slight decrease. This sustained growth suggests effective asset management and increasing profitability. The relatively stable ROA in the final quarter indicates a consistent level of performance.
- Overall Trend
- Overall, the ROA demonstrates a positive long-term trend. While short-term fluctuations were present, the company has generally improved its ability to generate profit from its assets over the analyzed period. The most recent values indicate a strong and stable ROA, suggesting efficient asset utilization and healthy profitability.