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Alphabet(Google) (GOOGL) Gross Profit

: $174,062 Mil (TTM As of Dec. 2023)
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Alphabet(Google)'s gross profit for the three months ended in Dec. 2023 was $48,735 Mil. Alphabet(Google)'s gross profit for the trailing twelve months (TTM) ended in Dec. 2023 was $174,062 Mil.

Gross Margin % is calculated as gross profit divided by its revenue. Alphabet(Google)'s gross profit for the three months ended in Dec. 2023 was $48,735 Mil. Alphabet(Google)'s Revenue for the three months ended in Dec. 2023 was $86,310 Mil. Therefore, Alphabet(Google)'s Gross Margin % for the quarter that ended in Dec. 2023 was 56.47%.

Alphabet(Google) had a gross margin of 56.47% for the quarter that ended in Dec. 2023 => Durable competitive advantage

During the past 13 years, the highest Gross Margin % of Alphabet(Google) was 62.44%. The lowest was 53.58%. And the median was 56.79%.


Alphabet(Google) Gross Profit Historical Data

The historical data trend for Alphabet(Google)'s Gross Profit can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Alphabet(Google) Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Profit
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 89,961.00 97,795.00 146,698.00 156,633.00 174,062.00

Alphabet(Google) Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Profit Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 40,706.00 39,175.00 42,688.00 43,464.00 48,735.00

Competitive Comparison

For the Internet Content & Information subindustry, Alphabet(Google)'s Gross Profit, along with its competitors' market caps and Gross Profit data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Alphabet(Google) Gross Profit Distribution

For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s Gross Profit distribution charts can be found below:

* The bar in red indicates where Alphabet(Google)'s Gross Profit falls into.



Alphabet(Google) Gross Profit Calculation

Gross Profit is the different between the sale prices and the cost of buying or producing the goods.

Alphabet(Google)'s Gross Profit for the fiscal year that ended in Dec. 2023 is calculated as

Gross Profit (A: Dec. 2023 )=Revenue - Cost of Goods Sold
=307394 - 133332
=174,062

Alphabet(Google)'s Gross Profit for the quarter that ended in Dec. 2023 is calculated as

Gross Profit (Q: Dec. 2023 )=Revenue - Cost of Goods Sold
=86310 - 37575
=48,735

Gross Profit for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $174,062 Mil.

Gross Profit is the numerator in the calculation of Gross Margin.

Alphabet(Google)'s Gross Margin % for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=(Revenue - Cost of Goods Sold) / Revenue
=48,735 / 86310
=56.47 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Alphabet(Google)  (NAS:GOOGL) Gross Profit Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Alphabet(Google) had a gross margin of 56.47% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Alphabet(Google) Gross Profit Related Terms

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Alphabet(Google) (GOOGL) Business Description

Address
1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043
Alphabet is a holding company. Internet media giant Google is a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart home products, which include Nest and Google Home, also contribute to other revenue. Alphabet's moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), provide faster internet access (Google Fiber), enable self-driving cars (Waymo), and more.
Executives
R. Martin Chavez director C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
Prabhakar Raghavan officer: Senior Vice President C/O ALPHABET INC.,, 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
Philipp Schindler officer: SVP, Chief Business Officer C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94568
John Kent Walker officer: SVP, Global Affairs and CLO 1600 AMPHITHEATRE PRKW, MOUNTAIN VIEW CA 94043
Frances Arnold director 5200 ILLUMINA WAY, SAN DIEGO CA 92122
Robin L Washington director 333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Amie Thuener O'toole officer: VP, Chief Accounting Officer C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
Antonio Lee 10 percent owner, other: Investor/Large Shareholder 4009 216TH STREET, MATTESON IL 60443
Ferguson Roger W. Jr. director CORNING INCORPORATED, ONE RIVERFRONT PLAZA, CORNING NY 14831
James Grier Campbell officer: VP, Alphabet Corp. Controller 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
John L Hennessy director
Kavitark Ram Shriram director 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
Alan R Mulally director P.O. BOX 995, MERCER ISLAND WA 98040
Ann Mather director
Shirley M Tilghman director GOOGLE INC., 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043

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