Alphabet Inc
NASDAQ:GOOGL
ROIC
Return on Invested Capital
ROIC, or Return on Invested Capital, tells you how good a company is at turning its invested money into profits. In simple terms, ROIC shows how many dollars of profit the company makes for each dollar it has invested. A higher ROIC usually means the company is using its money wisely to grow and make more profits, which is a good sign for investors.
ROIC Across Competitors
| Country | Company | Market Cap | ROIC | ||
|---|---|---|---|---|---|
| US |
|
Alphabet Inc
NASDAQ:GOOGL
|
2T USD |
31%
|
|
| US |
|
Meta Platforms Inc
NASDAQ:META
|
1.5T USD |
36%
|
|
| CN |
|
Tencent Holdings Ltd
HKEX:700
|
4.6T HKD |
14%
|
|
| US |
R
|
Reelcause Inc
OTC:RCIT
|
134.4B USD |
-9%
|
|
| JP |
L
|
LY Corp
XMUN:YOJ
|
46.3B EUR |
3%
|
|
| CN |
|
Baidu Inc
NASDAQ:BIDU
|
32B USD |
8%
|
|
| CN |
|
Kuaishou Technology
HKEX:1024
|
232.1B HKD |
35%
|
|
| JP |
|
Z Holdings Corp
TSE:4689
|
3.8T JPY |
3%
|
|
| KR |
|
Naver Corp
KRX:035420
|
29.4T KRW |
5%
|
|
| AU |
|
REA Group Ltd
ASX:REA
|
32.5B AUD |
25%
|
|
| US |
|
Pinterest Inc
NYSE:PINS
|
18.2B USD |
62%
|
Alphabet Inc
Glance View
Alphabet Inc., birthed from the colossal success of Google, stands as a testament to the transformative power of innovation and strategic diversification. Born out of a reorganization in 2015, Alphabet was designed to segregate Google's core services, like search and advertising, from its wildly ambitious "Other Bets" ventures, such as self-driving cars, health tech, and urban innovation initiatives. This structural transformation enabled Alphabet to pursue moonshot ideas without hampering the profitability and operational focus of Google's core business. Google, undeniably the crown jewel of Alphabet's empire, drives the vast majority of the company's revenue through its dominance in digital advertising. With unparalleled reach through its search engine, YouTube, and the Google Display Network, Google captures billions in revenue by connecting advertisers with an expansive global audience. Beyond advertising, Alphabet has ventured into various sectors to broaden its revenue streams. Google Cloud, for example, has carved out a substantial niche in the competitive cloud computing industry, catering to both corporate giants and budding startups with its powerful infrastructure and artificial intelligence capabilities. Meanwhile, the company's "Other Bets," though yet to reach the financial heights of Google, represent a bold exploration into emerging technologies. Projects like Waymo seek to revolutionize transportation with autonomous vehicles, while initiatives under Verily and Calico aim to extend human life and enhance healthcare. In this way, Alphabet not only continues to fortify its dominance in the digital realm but also positions itself as a vanguard of future technological breakthroughs.
See Also
ROIC, or Return on Invested Capital, tells you how good a company is at turning its invested money into profits. In simple terms, ROIC shows how many dollars of profit the company makes for each dollar it has invested. A higher ROIC usually means the company is using its money wisely to grow and make more profits, which is a good sign for investors.
Based on Alphabet Inc's most recent financial statements, the company has ROIC of 30.8%.
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