Alphabet Operating Margin vs. Return On Asset

    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 Return On Asset vs. Operating Margin Fundamental Analysis

    Alphabet is one of the top stocks in operating margin category among related companies. It is one of the top stocks in return on asset category among related companies reporting about  0.31  of Return On Asset per Operating Margin. The ratio of Operating Margin to Return On Asset for Alphabet is roughly  3.24 
    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.
    Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.
    Alphabet 
    Return on Asset 
     = 
    Net Income 
    Total Assets 
    X
    100 
    =
    9.65 %
    Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

    Alphabet Return On Asset Comparison

      Return On Asset 
          Alphabet Comparables 
    Alphabet is currently under evaluation in return on asset category among related companies.
      Operating Margin 
          Alphabet Comparables 
    Alphabet is currently under evaluation in operating margin category among related companies.