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Alphabet Inc. GOOGL Return on invested capital

Return on invested capital at other companies

International Business Machines logo
International Business MachinesIBM
13.2%+4.1pp
Apple logo
AppleAAPL
89.1%+17.8pp
Microsoft logo
MicrosoftMSFT
26.7%-1.2pp
Amazon logo
AmazonAMZN
14%-3.8pp
Marriott International logo
Marriott InternationalMAR
23%-0.2pp
Netflix logo
NetflixNFLX
33.2%+3.2pp

Other financials

Income statement

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Revenue$109.90B+21.8%
Gross profit$68.6B+27.4%
Operating income$39.7B+29.7%
Net income$62.6B+81.2%
EPS (diluted)$5.11+81.9%

Balance sheet

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Cash & equivalents$38.1B+63.6%
Total debt$97.9B+456%
Total equity$478.75B+38.7%
Total assets$703.92B+48.1%

Cash flow

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Operating cash flow$45.8B+26.7%
CapEx$35.7B+107%
Free cash flow$10.1B-46.6%

Valuation

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Market cap$4.42T+82.2%
Enterprise value$4.48T+85.9%
P/E27.6×+5.7×
P/S10.5×+3.7×

Profitability

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Gross margin60.4%+1.8pp
Operating margin32.7%0.0pp
Net margin37.9%+7.1pp

Returns & leverage

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Return on equity38.9%+4.1pp
Debt / equity0.2×+0.2×
Current ratio1.9×+0.2×

Where this comes from

Calculated from Alphabet Inc.’s reported figures.

Based on trailing twelve months.

The official record: Alphabet Inc.’s 10-Q, filed April 30, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Alphabet Inc.'s return on invested capital?
Alphabet Inc. (GOOGL) reported return on invested capital of 25.9% in Q1 2026.
How has Alphabet Inc.'s return on invested capital changed year-over-year?
Alphabet Inc.'s return on invested capital decreased by 17.3% year-over-year, from 31.3% to 25.9%.
What is the long-term trend for Alphabet Inc.'s return on invested capital?
Over 4 years (2021 to 2025), Alphabet Inc.'s return on invested capital has grown at a 4.0% compound annual growth rate (CAGR), from 100.1% to 116.9%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.