The Drivers Module shows relationships between Alphabet's most relevant fundamental drivers and provides multiple suggestions of what could possibly affect the performance of Alphabet over time as well as its relative position and ranking within its peers. Please also check Risk vs Return Analysis
Alphabet Net Income vs. Gross Profit Fundamental AnalysisAlphabet is one of the top stocks in gross profit category among related companies. It is one of the top stocks in net income category among related companies making up about 0.25 of Net Income per Gross Profit. The ratio of Gross Profit to Net Income for Alphabet is roughly 3.92 Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Gross Profit varies significantly from one sector to another and tells investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.Net income is the profit of a company for the reporting period which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most watched numbers by money managers as well as individual investors.
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin which measures income as a percentage of sales.