Reading the annual reports…
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GOOGL · Nasdaq · United States
In shortAlphabet Inc. is profitable, generates cash and holds more cash than debt, with revenue growing (+15.1% last year).
Financial health
Strong
Built from five areas over the last five annual reports. Tap an area to see the figures behind it.
| Operating marginShare of each sale left after running the business, before interest and tax. | 32.0% | 100/100 |
|---|---|---|
| Net marginShare of each sale left as profit after every cost, interest and tax. | 32.8% | 100/100 |
| Return on equityProfit earned on the money shareholders put in. Above 15% is strong. | 35.7% | 100/100 |
| Return on invested capitalProfit earned on all the capital used (equity and debt). Above 10% usually means a real competitive edge. | 23.2% | 100/100 |
Weight in the score: 25%
| Current ratioShort-term assets divided by short-term debts. Below 1 can mean tight cash. | 2.01× | 100/100 |
|---|---|---|
| Debt / equityDebt compared with the shareholders' stake. Above 2 is heavily indebted. | 0.12× | 100/100 |
| Net debt / EBITDAYears of operating profit needed to repay net debt. Below 2 is comfortable. | Net cash | 100/100 |
| Interest coverageHow many times operating profit covers interest. Below 2 is risky. | 175.32× | 100/100 |
| Altman Z''Bankruptcy-risk model. Above 2.6 safe, below 1.1 distress. | 6.79 | 100/100 |
Weight in the score: 25%
| Free cash flow marginCash left from each sale after investments. The money that can pay dividends or reduce debt. | 18.2% | 93/100 |
|---|---|---|
| Free cash flow / net incomeHow much accounting profit turns into real cash. Near 1 or above is healthy. | 0.55× | 32/100 |
| Years with positive free cash flow (last 5) | 5 of 5 | 100/100 |
Weight in the score: 20%
| Profitable years (last 5) | 5 of 5 | 100/100 |
|---|---|---|
| Years of revenue decline (last 5) | 0 of 5 | 100/100 |
| Revenue growth volatility | 13.4% | 62/100 |
| Operating margin volatility | 2.6% | 85/100 |
Weight in the score: 20%
| Revenue growth, 3-year average | 12.5% | 86/100 |
|---|---|---|
| EPS growth, 3-year average | 33.3% | 100/100 |
Weight in the score: 10%
Fiscal year 2025 · change vs prior year
Annual figures as reported. Hover a bar or point for the exact value.
5 older years available with the 10-year history. Essential plan, from €8.25/month →
The last 5 fiscal years from the company's annual reports.
USD millions; negative values in parentheses.
| Fiscal year | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue | 257,637 | 282,836 | 307,394 | 350,018 | 402,836 |
| Cost of revenue | 110,939 | 126,203 | 133,332 | 146,306 | 162,535 |
| Gross profit | 146,698 | 156,633 | 174,062 | 203,712 | 240,301 |
| Research & development | 31,562 | 39,500 | 45,427 | 49,326 | 61,087 |
| Operating income | 78,714 | 74,842 | 84,293 | 112,390 | 129,039 |
| Interest expense | 346 | 357 | 308 | 268 | 736 |
| Pre-tax income | 90,734 | 71,328 | 85,717 | 119,815 | 158,826 |
| Income tax | 14,701 | 11,356 | 11,922 | 19,697 | 26,656 |
| Net income | 76,033 | 59,972 | 73,795 | 100,118 | 132,170 |
| Diluted EPS | $5.61 | $4.56 | $5.80 | $8.04 | $10.81 |
| Diluted shares (millions) | – | 13,159 | 12,722 | 12,447 | 12,230 |
5 older years available with the 10-year history. Essential plan, from €8.25/month →
6.79 Safe zone
Estimates bankruptcy risk from working capital, retained earnings, operating profit and equity. Above 2.6 is considered safe, below 1.1 signals distress.
6/9
Nine yes-or-no tests on profitability, debt, liquidity and efficiency versus the prior year. 7 to 9 is strong, 0 to 3 is weak.
All figures: SEC EDGAR. Ratios and scores are computed by Scorvest (see how it works). Information only, not investment advice. How it works