The review of Net Profit Margin witnessed a surging trend. The Net Profit Margin improved from 22.06% in 2020 to 28.60% in 2024.
The average EBIT Margin for the period under analysis was 28.36%.
The Asset turnover stood at 0.78 times in 2024 from 0.57 in 2020, implying a higher performance or Assets of the business in relation to revenue.
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Profitability
The revenue of Alphabet has increased year on year. The revenue increased by 41.15% between 2020 and 2021 and a further 8.68% increase was recorded between 2022 and 2023. There also occurred an increase of 13.87% between 2023 and 2024 (the current period).
Alphabet’s performance in profitability looks good as the return on capital employed also recorded good performance during the period of analysis.
Liquidity
The company’s result in liquidity looks good, as current ratio decreased from 2.10:1 to 1.84:1 on the last year. Which implies that the company still have enough current assets to settle its current liabilities regardless.
Capital Structure
Alphabet is both equity and debt financed.
The debt-to-equity (D/E) ratio has been changing year on year. The gearing position of the company appears to be low as it stood at 38.50% in the current year.
