Alphabet Operating Margin vs. Debt to Equity

    GOOG -- USA Stock  

    USD 1,184  5.53  0.46%

    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 Debt to Equity vs. Operating Margin Fundamental Analysis

    Alphabet is one of the top stocks in operating margin category among related companies. It is rated below average in debt to equity category among related companies fabricating about  0.11  of Debt to Equity per Operating Margin. The ratio of Operating Margin to Debt to Equity for Alphabet is roughly  9.49 
    Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
    Alphabet 
    Operating Margin 
     = 
    Operating Income 
    Revenue 
    X
    100 
    =
    31.31 %
    A good Operating Margin is required for a company to be able to pay for its fixed costs or pay out its debt which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against firm's competitors.
    Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.
    Alphabet 
    D/E 
     = 
    Total Debt 
    Total Equity 
    =
    3.30 %
    High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging barrowing against the capital invested by the owners.

    Alphabet Debt to Equity Comparison

      Debt to Equity 
          Alphabet Comparables 
    Alphabet is currently under evaluation in debt to equity category among related companies.
      Operating Margin 
          Alphabet Comparables 
    Alphabet is currently under evaluation in operating margin category among related companies.