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Alphabet Inc
NASDAQ:GOOGL

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Alphabet Inc Logo
Alphabet Inc
NASDAQ:GOOGL
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Price: 130.86 USD -1.1% Market Closed
Updated: Sep 30, 2023

Profitability Summary

We take all the information about a company's profitability (such as its margins, capital efficiency, free cash flow generating ability, and more) and consolidate it into one single number - the profitability score. The higher the profitability score, the more profitable the company is.

Past Growth

To be successful and remain in business, both growth and profitability are important and necessary. Net Income growth is often seen as a sign of a company's efficiency from an operational standpoint, but is influenced heavily by a company's goals and challenges and should therefore be assessed in conjunction with other metrics like revenue and operating income growth.

Margins

Profit margins represent what percentage of sales has turned into profits. Simply put, the percentage figure indicates how many cents of profit the company has generated for each dollar of sale.

Profit margins help investors assess if a company's management is generating enough profit from its sales and whether operating costs and overhead costs are being contained.

Earnings Waterfall
Alphabet Inc

Revenue
290B USD
Cost of Revenue
-128.3B USD
Gross Profit
161B USD
Operating Expenses
-84B USD
Operating Income
77.2B USD
Other Expenses
-16.2B USD
Net Income
61B USD

Margins Comparison
Alphabet Inc Competitors

Country Company Market Cap Gross
Margin
Operating
Margin
Net
Margin
US
Alphabet Inc
NASDAQ:GOOGL
1.7T USD
56%
27%
21%
US
Meta Platforms Inc
NASDAQ:META
772B USD
80%
29%
20%
CN
Tencent Holdings Ltd
HKEX:700
2.9T HKD
45%
22%
34%
CN
Baidu Inc
NASDAQ:BIDU
47.6B USD
55%
13%
6%
CN
Kuaishou Technology
HKEX:1024
272B HKD
45%
-12%
-15%
KR
Naver Corp
KRX:035420
30.3T KRW
0%
15%
8%
JP
Z Holdings Corp
TSE:4689
3.1T JPY
69%
9%
11%
US
Pinterest Inc
NYSE:PINS
18B USD
75%
-8%
-10%
KR
Kakao Corp
KRX:035720
19.2T KRW
93%
7%
2%
US
Snap Inc
NYSE:SNAP
14.1B USD
58%
-33%
-30%
AU
REA Group Ltd
ASX:REA
20.4B AUD
85%
39%
26%
Country US
Market Cap 1.7T USD
Gross Margin
56%
Operating Margin
27%
Net Margin
21%
Country US
Market Cap 772B USD
Gross Margin
80%
Operating Margin
29%
Net Margin
20%
Country CN
Market Cap 2.9T HKD
Gross Margin
45%
Operating Margin
22%
Net Margin
34%
Country CN
Market Cap 47.6B USD
Gross Margin
55%
Operating Margin
13%
Net Margin
6%
Country CN
Market Cap 272B HKD
Gross Margin
45%
Operating Margin
-12%
Net Margin
-15%
Country KR
Market Cap 30.3T KRW
Gross Margin
0%
Operating Margin
15%
Net Margin
8%
Country JP
Market Cap 3.1T JPY
Gross Margin
69%
Operating Margin
9%
Net Margin
11%
Country US
Market Cap 18B USD
Gross Margin
75%
Operating Margin
-8%
Net Margin
-10%
Country KR
Market Cap 19.2T KRW
Gross Margin
93%
Operating Margin
7%
Net Margin
2%
Country US
Market Cap 14.1B USD
Gross Margin
58%
Operating Margin
-33%
Net Margin
-30%
Country AU
Market Cap 20.4B AUD
Gross Margin
85%
Operating Margin
39%
Net Margin
26%

Return on Capital

Return on capital ratios give a sense of how well a company is using its capital (equity, assets, capital employed, etc.) to generate profits (operating income, net income, etc.). In simple words, these ratios show how much income is generated for each dollar of capital invested.

Return on Capital Comparison
Alphabet Inc Competitors

Country Company Market Cap ROE ROA ROCE ROIC
US
Alphabet Inc
NASDAQ:GOOGL
1.7T USD
23%
17%
26%
26%
US
Meta Platforms Inc
NASDAQ:META
772B USD
19%
13%
22%
20%
CN
Tencent Holdings Ltd
HKEX:700
2.9T HKD
27%
13%
11%
10%
CN
Baidu Inc
NASDAQ:BIDU
47.6B USD
3%
2%
5%
6%
CN
Kuaishou Technology
HKEX:1024
272B HKD
-32%
-15%
-22%
-42%
KR
Naver Corp
KRX:035420
30.3T KRW
3%
2%
5%
3%
JP
Z Holdings Corp
TSE:4689
3.1T JPY
6%
2%
2%
2%
US
Pinterest Inc
NYSE:PINS
18B USD
-10%
-8%
-8%
-25%
KR
Kakao Corp
KRX:035720
19.2T KRW
1%
1%
3%
2%
US
Snap Inc
NYSE:SNAP
14.1B USD
-46%
-16%
-21%
-41%
AU
REA Group Ltd
ASX:REA
20.4B AUD
26%
14%
24%
16%
Country US
Market Cap 1.7T USD
ROE
23%
ROA
17%
ROCE
26%
ROIC
26%
Country US
Market Cap 772B USD
ROE
19%
ROA
13%
ROCE
22%
ROIC
20%
Country CN
Market Cap 2.9T HKD
ROE
27%
ROA
13%
ROCE
11%
ROIC
10%
Country CN
Market Cap 47.6B USD
ROE
3%
ROA
2%
ROCE
5%
ROIC
6%
Country CN
Market Cap 272B HKD
ROE
-32%
ROA
-15%
ROCE
-22%
ROIC
-42%
Country KR
Market Cap 30.3T KRW
ROE
3%
ROA
2%
ROCE
5%
ROIC
3%
Country JP
Market Cap 3.1T JPY
ROE
6%
ROA
2%
ROCE
2%
ROIC
2%
Country US
Market Cap 18B USD
ROE
-10%
ROA
-8%
ROCE
-8%
ROIC
-25%
Country KR
Market Cap 19.2T KRW
ROE
1%
ROA
1%
ROCE
3%
ROIC
2%
Country US
Market Cap 14.1B USD
ROE
-46%
ROA
-16%
ROCE
-21%
ROIC
-41%
Country AU
Market Cap 20.4B AUD
ROE
26%
ROA
14%
ROCE
24%
ROIC
16%

Free Cash Flow

Free cash flow (FCF) is the money a company has left over after paying its operating expenses and capital expenditures. The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

If a company has a decreasing free cash flow, that is not necessarily bad if the company is investing in its growth.

See Also

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