Alphabet (XBUL:ABEA) ROCE % : 37.02% (As of Sep. 2024)

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What is Alphabet ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Alphabet's annualized ROCE % for the quarter that ended in Sep. 2024 was 37.02%.

Alphabet ROCE % Historical Data

The historical data trend for Alphabet's ROCE % 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.

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Alphabet ROCE % Chart

Alphabet Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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18.53

19.54

32.66

24.26

27.91

Alphabet Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
ROCE %	Get a 7-Day Free Trial															27.69	31.04	34.91	33.11	37.02

Alphabet ROCE % Calculation

Alphabet's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	160121.515	/	( ( (679879.398 - 128990.654)	+	(748987.118 - 152283.425) )	/ 2 )
	=	160121.515	/	( (550888.744	+	596703.693)	/ 2 )
	=	160121.515	/	573796.2185
	=	27.91 %

Alphabet's ROCE % of for the quarter that ended in Sep. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2024 )		(Q: Jun. 2024 )		(Q: Sep. 2024 )
	=	236464.252	/	( ( (772026.748 - 145022.35)	+	(800870.026 - 150401.614) )	/ 2 )
	=	236464.252	/	( ( 627004.398	+	650468.412 )	/ 2 )
	=	236464.252	/	638736.405
	=	37.02 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2024) EBIT data.

Alphabet (XBUL:ABEA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Alphabet ROCE % Related Terms

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Alphabet Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Alphabet Inc (XBUL:ABEA) » Definitions » ROCE %

Comparable Companies

Address

1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043

Website

https://www.abc.xyz

Alphabet is a holding company that wholly owns internet giant Google. The California-based company derives slightly less than 90% of its revenue from Google services, the vast majority of which is advertising sales. Alongside online ads, Google services houses sales stemming from Google's subscription services (YouTube TV, YouTube Music among others), platforms (sales and in-app purchases on Play Store), and devices (Chromebooks, Pixel smartphones, and smart home products such as Chromecast). Google's cloud computing platform, or GCP, accounts for roughly 10% of Alphabet's revenue with the firm's investments in up-and-coming technologies such as self-driving cars (Waymo), health (Verily), and internet access (Google Fiber) making up the rest.

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