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.
Profitability
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.
Liquidity
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.
