Hey All,
Thanks for visiting my Alphabet Financial Report page. On this page, you will be able to find preliminary information about Alphabet's (Google) current financial performance as well as some historical track records and trends.
For a more detailed examination of Alphabet's financial performance, I offer two reports, which are "A Beginner's Guide to Alphabet Financial Analysis" and "Alphabet Financial Report by Paul Borosky, MBA." Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, and include:
- Summarized income statements for the last 5 years.
- Summarized balance sheets for the last 5 years.
- Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
- Line-by-line description, explanation, and analysis tip for most financial statement line items and financial ratios.
- Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
- Each section includes an “in other words” segment. This is where I use plain English to explain concepts.
For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Alphabet Financial Report." The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...
- Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
- "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
- Overall financial analysis summary for the company.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Sincerely,
Paul, MBA.
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Sample Financial Report


Alphabet Inc.: Brief Summary
Alphabet is located at 1600 Amphitheatre Parkway in Mountain View, CA. The company competes in the technological sector. Their industry is related to Internet content and information. The most recent estimate of the company’s employee count is about 174,000. The firm is led by Sundar Pichai. Other members of their executive team would include Lawrence Page, Ruth Porat, and Sergey Brin (8/22).
Alphabet Inc., commonly known as Google, offers Internet content and advertising services to residents and businesses in the United States, European Union, Middle East, Africa, Canada, and several other countries. Popular services provided by the firm include advertisements, digital content, cloud services, home connectivity, and other products and software services. The firm was established in 1998.
Alphabet (Google) Financial Report Sources
“Alphabet Inc. (Google) 2021 Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by Paul Borosky, MBA., and owner of Quality Business Plan. In this report, the author selected Alphabet's 2019 10k, Alphabet's 2017 10k annual report, Alphabet's 2016 10k annual report, Alphabet's 2015 10k annual report, and Alphabet's 2014 10k annual report as the basis for information gathering. Once all of Alphabet's 10k annual statements were collected, the author then inserted Alphabet's income statement information and Alphabet's balance sheet information into a customized financial template.
Section 1: Alphabet Inc. Income Statement Analyzed
In this section, I walk through a broad definition of what an income statement is and why it is crucial. From this, I then discuss each of Alphabet's essential income statement line items, such as revenues, gross profits, etc., in detail. After each line item is defined and discussed, I then offer an analysis of Alphabet's income statement line items in most cases.
Revenue Growth:
Alphabet’s revenues were $110.8 billion in 2017. In the next four years, Alphabet’s revenues would climb to $257.6 billion in 2021. On average, this is an annual growth rate of approximately 23.9%. For multinational organizations such as this, this is extraordinarily impressive.
Analyst Grade: A
Alphabet (Google) Summary Income Statement 2021 |
|||||
Column1 |
2021 |
2020 | 2019 | 2018 |
2017 |
Revenues |
257,637 |
182,527 | 161,857 | 136,819 |
110,855 |
COGS |
110,939 |
84,732 | 71,896 | 59,549 |
45,583 |
Gross Profit |
146,698 |
97,795 | 89,961 | 77,270 |
65,272 |
SG&A |
22,912 |
28,998 | 35,569 | 24,459 |
19,765 |
Depreciation |
11,555 |
12,905 | 10,856 |
8,164 |
6,103 |
R & D |
31,562 |
27,573 | 26,018 | 21,419 |
16,625 |
Other |
- |
- | 1,697 | 5,071 |
- |
Total Operating Expenses |
66,029 |
69,476 | 74,140 | 59,113 |
42,493 |
EBIT |
78,714 |
41,224 | 34,231 | 26,321 |
26,146 |
Other Income |
12,020 |
6,858 | 5,395 | 8,592 |
1,047 |
Interest Expense |
346 |
135 | 100 | 114 |
109 |
EBT |
90,734 |
48,082 | 39,625 | 34,913 |
27,193 |
Taxes |
14,701 |
7,813 | 5,282 | 4,177 |
14,531 |
Net Income |
76,033 |
40,269 | 34,343 | 30,736 |
12,662 |
Section 2: Alphabet Inc. Balance Sheet Analyzed
For Alphabet Inc.'s balance sheet, I again go through each important line item from the balance sheet. In reviewing each line item, I will define Alphabet's balance sheet line item, such as cash, property, plant and equipment, and liabilities. Next, I then offer an analysis of Alphabet's balance sheet line item.
Cash:
Alphabet’s cash position was $10.7 billion in 2017. As compared to sales, this would be 9.7%. In the next four years, Alphabet’s cash position increased to $20.9 billion in 2021. As compared to sales, this would be 8.1%. This trend indicates that the organization is increasing its cash position. However, they are not increasing it as fast as sales are growing. This shows that the company is able to meet its short-term liabilities utilizing less cash as a percentage of sales. An excellent strategy and structure.
Analyst Grade: A
Alphabet (Google 2021) Summary Balance Sheet |
|||||
Column1 |
2021 | 2020 | 2019 | 2018 |
2017 |
Cash |
20,945 |
26,465 | 18,498 | 16,701 |
10,715 |
Short Term Investment |
118,704 |
110,229 | 101,177 | 92,439 |
91,156 |
Account Receivable |
39,304 |
30,930 | 25,326 | 20,838 |
18,336 |
Inventory |
1,170 |
728 | 999 | 1,107 |
749 |
Other | - | - | - | - | - |
Current Assets |
188,143 |
174,296 | 152,578 | 135,676 |
124,308 |
Net PPE |
97,599 |
84,749 | 73,646 | 59,719 |
42,383 |
Goodwill |
22,956 |
21,175 | 20,624 | 17,888 |
16,747 |
Other | - | - | - | - | - |
Total Assets |
359,268 |
319,616 | 275,909 | 232,792 |
197,295 |
Accounts Payable |
6,037 |
5,589 | 5,561 | 4,378 |
3,137 |
Accrued Expense |
45,125 |
39,717 | 31,562 | 26,142 |
18,733 |
Accrued Taxes |
808 |
1,485 | 274 | 69 |
881 |
Notes Payable | - | - | - | - | - |
LT Debt - Current | - | - | - | - | - |
Other | - | - | - | - | - |
Total Current Liabilities |
64,254 |
56,834 | 45,221 | 34,620 |
24,183 |
LT Debt | 14,817 | 13,932 | 4,554 | 4,012 | 3,969 |
Other | - | - | - | - | - |
Total Liabilities |
107,633 |
97,072 | 74,467 | 55,164 |
44,793 |
Common Stock |
61,774 |
58,510 | 50,552 | 45,049 |
40,247 |
Treasury | - | - | - | - | - |
Retained Earnings |
191,484 |
163,401 | 152,122 | 134,885 |
113,247 |
Other | - | - | - | - | - |
Total Equity |
251,635 |
222,544 | 201,442 | 177,628 |
152,502 |
Total Equity & Liability |
3,592,668 |
319,616 | 275,909 | 232,792 |
197,295 |
Section 3: Alphabet Inc. Financial Ratios Analyzed
For this section, I have chosen about 16 different financial ratios to review for Alphabet. In reviewing each of Alphabet's financial ratios, I first start with defining the financial ratio. Next, I supply the financial formula for calculating the specific ratio. Finally, I offer a brief analysis of Alphabet's Financial ratio. Ratios calculated for the last five years include:
Alphabet (Google) Current Ratio
Alphabet’s current ratio was 5.14 in 2017. In the next several years, the company took steps to reduce its current ratio ending in 2021 at 2.9. Keeping in mind that the gold standard for the current ratio is 1.0, Alphabet seems to be mismanaging its current assets. A better strategy would be for the organization to divest significant portions of its cash into operations, expansion, and or dividend payouts. From an investor’s perspective, this is a poor trend.
Analyst Grade: C
Alphabet (Google) Return on Assets (ROA)
Alphabet’s return on assets (ROA) was 6.4% in 2017. In the next three years, ending 2020, the company would almost double its return on assets ending the year at 12.6%. Further, in 2021, the company’s return on assets would jump significantly, ending the year at 21.1%. This trend shows that the company is continually generating additional revenues using the assets of its management.
Analyst Grade: A
Alphabet (Google) Liquidity Ratios |
|||||
Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
Current Ratio | 3.37 | 3.92 | |||
Cash Ratio | 0.41 | 0.48 | |||
Quick Ratio | 3.35 | 3.89 | |||
Net Working Capital | 7,426 | 8,057 | |||
Alphabet (Google) Asset Utilization |
|||||
Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
Total Asset Turnover | 0.59 | 0.59 | |||
Fixed Asset Turnover | 2.20 | 2.29 | |||
Days Sales Outstanding | 57.11 | 55.59 | |||
Inventory Turnover | 162.02 | 123.59 | |||
Accounts Receivable Turnover | 6.39 | 6.57 | |||
Working Capital Turnover | 21.80 | 16.98 | |||
AP Turnover | 29.11 | 31.25 | |||
Average Days Inventory | 0.44 | 0.34 | |||
Average Days Payable | 0.08 | 0.09 | |||
Alphabet (Google) Profitability Ratios |
|||||
Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
Return on Assets | 12.45% | 13.20% | |||
Return on Equity | 17.05% | 17.30% | |||
Net Profit Margin | 21.22% | 22.46% | |||
Gross Profit Margin | 55.58% | 56.48% | |||
Operating Profit Margin | 21.15% | 19.24% | |||
Basic Earning Power | 12.41% | 11.31% | |||
ROCE | 14.84% | 13.28% | |||
Capital Employed | 230,688 | 198,172 | |||
ROIC | 36.59% | 34.19% |
Alphabet (Google) Long-term Debt |
|||||
Ratios | 2019 | 2018 | 2017 | 2016 | 2015 |
Debt Ratio | 1.65% | 1.72% | |||
Debt/Equity | 2.26% | 2.26% | |||
Times Interest Earned | 58.51 | 3.86 |