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Alphabet(Google) ROA %

: 17.97% (As of Jun. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Alphabet(Google)'s annualized Net Income for the quarter that ended in Jun. 2022 was $64,008 Mil. Alphabet(Google)'s average Total Assets over the quarter that ended in Jun. 2022 was $356,141 Mil. Therefore, Alphabet(Google)'s annualized ROA % for the quarter that ended in Jun. 2022 was 17.97%.

The historical rank and industry rank for Alphabet(Google)'s ROA % or its related term are showing as below:

GOOG' s ROA % Range Over the Past 10 Years
Min: 6.94   Med: 12.68   Max: 22.4
Current: 20.53

During the past 13 years, Alphabet(Google)'s highest ROA % was 22.40%. The lowest was 6.94%. And the median was 12.68%.

GOOG's ROA % is ranked better than
91.06% of 604 companies
in the Interactive Media industry
Industry Median: 0.59 vs GOOG: 20.53

Alphabet(Google) ROA % Historical Data

The historical data trend for Alphabet(Google)'s ROA % 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 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.94 14.29 13.50 13.52 22.40

Alphabet(Google) Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROA % 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 22.37 22.19 23.37 18.35 17.97

Competitive Comparison

For the Internet Content & Information subindustry, Alphabet(Google)'s ROA %, along with its competitors' market caps and ROA % 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) ROA % Distribution

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

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



Alphabet(Google) ROA % Calculation

Alphabet(Google)'s annualized ROA % for the fiscal year that ended in Dec. 2021 is calculated as:

ROA %=Net Income (A: Dec. 2021 )/( (Total Assets (A: Dec. 2020 )+Total Assets (A: Dec. 2021 ))/ count )
=76033/( (319616+359268)/ 2 )
=76033/339442
=22.40 %

Alphabet(Google)'s annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %=Net Income (Q: Jun. 2022 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Jun. 2022 ))/ count )
=64008/( (357096+355185)/ 2 )
=64008/356140.5
=17.97 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2022) net income data. ROA % is displayed in the 30-year financial page.


Alphabet(Google)  (NAS:GOOG) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2022 )
=Net Income/Total Assets
=64008/356140.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(64008 / 278740)*(278740 / 356140.5)
=Net Margin %*Asset Turnover
=22.96 %*0.7827
=17.97 %

Note: The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Alphabet(Google) ROA % Related Terms

Thank you for viewing the detailed overview of Alphabet(Google)'s ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Alphabet(Google) Business Description

Alphabet(Google) logo
Address
1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043
Alphabet Inc is a holding company, with Google, the Internet media giant, as 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 homes 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), faster Internet access to homes (Google Fiber), self-driving cars (Waymo), and more. Alphabet's operating margin has been 25%-30%, with Google at 30% and other bets operating at a loss.
Executives
Hennessy John L director
Mather Ann director
Porat Ruth officer: SVP, CFO C/O GOOGLE INC. 1600 AMPHITHEATRE PRKW MOUNTAIN VIEW CA 94043
Pichai Sundar director, officer: Chief Executive Officer GOOGLE INC. 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Doerr L John director C/O KLEINER PERKINS CAUFIELD & BYERS 2750 SAND HILL ROAD MENLO PARK CA 94025
Arnold Frances director 5200 ILLUMINA WAY SAN DIEGO CA 92122
Ferguson Roger W. Jr. director CORNING INCORPORATED ONE RIVERFRONT PLAZA CORNING NY 14831
Shriram Kavitark Ram director 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Mulally Alan R director P.O. BOX 995 MERCER ISLAND WA 98040
Washington Robin L director 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Brin Sergey director, 10 percent owner 555 BRYANT STREET, #367 PALO ALTO CA 94031
Drummond David C officer: SVP, Corporate Development 1600 AMIPHITHEATRE PARKWAY BUILDING 41 MOUNTAIN VIEW CA 94043
Schmidt Eric E director 1010 ALMA STREET MENLO PARK CA 94025
Greene Diane B director C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043
Campbell James Grier officer: VP, Alphabet Corp. Controller 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043

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