Key Performance Metrics
  • The review of Net Profit Margin witnessed a fluctuating trend. The Net Profit Margin moved from 21.22% in 2019 to 24.01% in 2023.
  • The average EBIT Margin for the period under analysis was 27.93% with 2019 and 2021 performing the worst and best,
  • In the current year, Alphabet was able to cover its interest liabilities 298.60 times in the current year- compared to 2019 when it was 397.25 times.
  • The Asset turnover stood at 0.79 times in 2023 from 0.62 in 2019, implying a high performance or Assets of the business in relation to revenue.
  • The revenue of Alphabet has fluctuated year on year. The revenue increased by 12.77% between 2019 and 2020 and a further 9.78% increase was recorded between 2021 and 2022. There also occurred an increase of 8.68% between 2022 and 2023 (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.
  • The company’s result in liquidity looks poor, as current ratio decreased from 2.38:1 to 2.10:1 on the last year. Which implies that the company does not have enough 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 falling year on year. The gearing position of the company appears to be low as it stood at 9% in the current year.
Source: Alphabet Annual Report

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