Alphabet Gross Profit vs. Return On Equity

Alphabet Inc -- USA Stock  

USD 992.18  1.89  0.19%

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 Inc over time as well as its relative position and ranking within its peers. Please also check Risk vs Return Analysis.

Alphabet Inc Return On Equity vs. Gross Profit Fundamental Analysis

Alphabet Inc is one of the top stocks in gross profit category among related companies. It is rated # 4 in return on equity category among related companies . The ratio of Gross Profit to Return On Equity for Alphabet Inc is about  2,877,230,550 
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.
Alphabet 
Gross Profit 
 = 
Revenue 
-  
Cost of Revenue 
=
40.31 B
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.
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how effecently a company utilizes investments to generate income.
Alphabet 
Return on Equity 
 = 
Net Income 
Total Equity 
X
100 
=
14.01 %
For most industries Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.

Comparison

Return On Equity Comparison
Alphabet is currently under evaluation in return on equity category among related companies.
  Gross Profit 
      Alphabet Comparables 
Alphabet is currently under evaluation in gross profit category among related companies.
Alphabet Inc., through its subsidiaries, offer online advertising services in the United States, the United Kingdom, and rest of the world. more
NameAlphabet Inc
Analyst Consensus
Macroaxis Advice
Bond Rating
InstrumentUSA Stock Stocks Directory
RegionNorth America
ExchangeNASDAQ
CIK Number01652044.0
ISINUS02079K1079
CurrencyUSD - US Dollar
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