Alphabet Inc. Financial Statement and Financial Ratios Analysis

Alphabet (Google) Inc. Financial Statements and Financial Ratios Analyzed

🚀 Decode Alphabet’s 2023 Financial Alphabet Like a Pro! 📊

Alphabet 2023 Beginner’s Guide Introduction:

Welcome, aspiring financial virtuosos! Are you set to dissect the financial DNA of Alphabet in 2023? Delve into “Alphabet 2023: Beginner’s Guide to Financial Analysis,” your premier resource from Quality Business Consultant, authored by the adept finance specialist, Paul Borosky, MBA. This guide transcends mere numbers; it’s your passport to unraveling the fiscal intricacies of the tech behemoth behind Google!

Why You’ll Love This Guide:

• Expert Guidance: 🎓 Journey through Alphabet’s 2023 financial landscape with insights from Paul Borosky, MBA, brought to you by Quality Business Consultant.
• Financial Exploration: 📉 Get a summary Alphabet’s income statements and balance sheets for 2023, dissecting the company’s financial prowess.
• Comprehensive Ratio Analysis: 🧮 Explore over twenty pivotal financial ratios to gauge Alphabet’s economic health and strategic positioning.
• Financial Jargon Demystified: 📚 Our “In other words” sections break down complex financial terms into digestible, relatable insights.
• Strategic Analysis Tips: 💡 Employ Paul’s tailored analysis tips to refine your financial analysis acumen, beneficial for both your academic journey and professional growth.
• Extended Insights with In-Depth Report: 🔍 For granular financial understanding, our “Financial Analysis & Report” offers a thorough examination of Alphabet, combining AI-driven insights with Paul Borosky’s analytical expertise.

Guide Highlights:

• A reader-friendly Legal Disclaimer
• An engaging Forward that paves the way for your financial expedition
• In-depth scrutiny of Income Statements and Balance Sheets for 2023
• A deep dive into Financial Ratios, enhancing your financial detective skills
• An encyclopedia of financial insights at your disposal!

Table of Contents Sneak Peek:

• Income Statement Exploration: Unraveling revenues, costs, and operational insights
• Balance Sheet Analysis: Investigating assets, liabilities, and equity – the pillars of financial equilibrium
• Financial Ratios Deciphered: Arming you with the tools to analyze Alphabet’s financial narratives

Who’s This For?

Tailored for the industrious business student or the enterprising entrepreneur, this guide is your gateway to mastering financial analysis with a focus on Alphabet.

Unlock Your Financial Acumen:

Elevate your financial literacy with “Alphabet 2023: Beginner’s Guide to Financial Analysis.” Transform daunting financial statements into a playground of strategic opportunities.

Additional Note: This beginner’s guide is crafted to lay a foundational understanding of essential financial principles, centering on income statements, balance sheets, and crucial financial ratios for their analysis. It provides a summarized portrayal of Alphabet’s financials, complete with specific data, calculations, and ratios to guide your analytical pursuits. While the guide furnishes you with the analytical tools, the depth of financial exploration is in your hands. For those desiring a comprehensive, company-specific financial analysis, our “Financial Analysis & Report” presents detailed insights, merging AI precision with Paul Borosky, MBA’s seasoned expertise.

PDF/Downloadable Versions

Click Below for the CURRENT

Downloadable PDF Price!!

Click Here to Buy Now!

Click Below for the CURRENT

Downloadable PDF Price!!

Click Here to Buy Now!

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.  Sundar Pichai leads the firm.  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 other countries.  Popular services the firm provides 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.  I 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 must analyze Alphabet’s income statement line items.

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 2023 Summary Income Statement
Column1	2023	2022	2021	2020	2019
Revenues	307,394	282,836	257,637	182,527	161,857
COGS	110,939	126,203	110,939	84,732	71,896
Gross Profit	196,455	156,633	146,698	97,795	89,961
SG&A	44,342	42,291	36,422	28,998	28,015
Depreciation	11,946	13,475	10,273	12,905	10,856
R & D	45,427	39,500	31,562	27,573	26,018
Other			–	–	–
Total Operating Expenses	223,101	207,994	178,923	141,303	127,626
EBIT	84,293	74,842	78,714	41,224	34,231
Other Income	1,424	(3,514)	12,020	6,858	5,395
Interest Expense
EBT	85,717	71,328	90,734	48,082	39,625
Taxes	11,922	11,356	14,701	7,813	5,282
Net Income	73,795	59,972	76,033	40,269	34,343

 

Section 2: Alphabet Inc. Balance Sheet Analyzed

For Alphabet Inc.’s balance sheet, I again go through each vital line item from the balance sheet.  In reviewing each line item, I will define Alphabet’s balance sheet line items, such as cash, property, plant and equipment, and liabilities.  Next, I 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 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 can meet its short-term liabilities by utilizing less cash as a percentage of sales-an excellent strategy and structure.

Analyst Grade: A

Alphabet 2023 Summary Balance Sheet
Column1	2023	2022	2021	2020	2019
Cash	24,048	21,879	20,945	26,465	18,498
Short Term Investment	86,868	91,883	118,704	110,229	101,177
Account Receivable	47,964	40,258	39,304	30,930	25,326
Inventory	–	–	1,170	728	999
Other	–	–	–	–	–
Current Assets	171,530	164,795	188,143	174,296	152,578
Net PPE	134,345	112,668	97,599	84,749	73,646
Goodwill	29,198	28,960	22,956	21,175	20,624
Other	–	–	–	–	–
Total Assets	402,392	365,264	359,268	319,616	275,909
Accounts Payable	7,493	5,128	6,037	5,589	5,561
Accrued Expense	61,308	51,894	45,125	39,717	31,562
Accrued Taxes	–	–	808	1,485	274
Notes Payable	–	–	–	–	–
LT Debt – Current	–	–	–	–	–
Other	–	–	–	–	–
Total Current Liabilities	81,814	69,300	64,254	56,834	45,221
LT Debt	13,253	14,701	14,817	13,932	4,554
Other	–	–	–	–	–
Total Liabilities	119,013	109,120	107,633	97,072	74,467
Common Stock	76,534	68,184	61,774	58,510	50,552
Treasury	–	–	–	–	–
Retained Earnings	211,247	195,563	191,484	163,401	152,122
Other	–	–	–	–	–
Total Equity	283,379	256,144	251,635	222,544	201,442
Total Equity & Liability	402,392	365,264	359,268	319,616	275,909

 

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 define 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.  Since the current ratio’s gold standard 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 at 21.1%.  This trend shows that the company is continually generating additional revenues using the assets of its management.

Analyst Grade: A