Google Financial Performance from Time to Time
Google Financial Performance from Time to Time-Google LLC or commonly known as Google is one
of the world’s leaders of technology industries in the US, alongside Amazon,
Apple, Meta (Facebook), Nvidia, and Microsoft, and recognized as one of the
world’s biggest companies as of 2024. Historically, founded on September 4th,
1998, by Sergey Brin and Larry Page (Both of them are Ph.D. students at
Stanford University in California), Google grew and became one of the giant technology companies in the World. As of
2024, Alphabets (Parent of Google) has 183,323 employees and has headquarters
in Mountain View, California, United States of America. Now, on the internet,
Google search engine or simply known as Google.com, has become one of the most visited websites in the world.
Google’s business Journey
Google is not a conventional company. The founders of Google /
Alphabet, Larry Page and Sergey Brin, want this company to become a special
company with an unconventional spirit that has been a driving force throughout
our history, inspiring us to tackle enormous handicaps. In the beginning, Google was the search
engine platform. At that time, they tried to compete with Yahoo as the major
player in the search engine of the Internet.
With all of their effort and hardwork, they can grab the market of Yahoo and overtake the
position. They dominate the search engine world and with their incredible
innovation, they tried to build a new platform for internet business. Some of
their innovations are Android, Google Chrome (Browser), Google Cloud, Google
Maps, Gmail (e-mail), and some other products. Furthermore, since 2015, the
company has invested around $100 billion in R&D. In the Stock market, in
2004, they made an initial public offering in
the Stock market with the price of around $3 per share. In 2024, the price of
Google/ Alphabet Class A shares was around
$158 per share. It grows more than two hundred times.
In its business journey since its founding, Google has had some
successful and impactful acquisitions to its business revenue and income. They
bought Android for $50
million in 2005 and YouTube for $1.65 billion in 2006. Nowadays, YouTube is one of the main
sources of Google revenue. Basically, YouTube is a video-sharing website
created by three former PayPal employees i.e. Chad Hurley, Steve Chen, and
Jawed Karim. Nowadays, many companies around the world use YouTube advertising to help
promote their products or services. Basically, YouTube is used by some people
to make content independently, and more importantly, they can get the revenue
if they upload their videos at YouTube and meet the requirements that they have made. Until now some people were
interested in becoming
YouTube content creators with miscellaneous
content.
Meanwhile, Android is used in most Smartphone Operating systems.
Many Smartphone
brands, namely Samsung, Asus, Lenovo, Xiaomi,
and others still use android in their operating systems. Android can let some
people make the application in Android. Basically, android allows people to express their ideas in making applications. It’s a decentralized application.
Some people have the same opportunity to make applications (apps). They can
create and design it freely. That’s why Android is successful in the market now
because of its open-minded application to people.
Nowadays, Google is the subsidiary of Alphabet. Besides Google,
Alphabet has numerous businesses in different areas of technology. Some of them
are Verily (Human health), Waymo (Autonomous driving), Wing (Drone-based
delivery of freight), and X Development (Research and development for
“moonshot” technologies). In the Future, maybe
the Alphabet can explore different areas.
As of Now, Along with the development of the company, Google
comprises two segments: Google Services and Google Cloud. Google Services aims
to serve people to improve their lives and productivity. Google service
products and platforms include ads, Android, Chrome, hardware, Gmail, Google
Drive, Google Maps, Google Photos, Google Play, Search, and YouTube.
Furthermore, Google also invests in infrastructure, security, data management,
analytics, and AI. The Google Cloud consists of Google Cloud Platform and
Google Workspace products. Google Cloud Platform enables developers to build,
test, and deploy applications on enormous scalable and reliable infrastructure.
Meanwhile, Google Workspace includes apps like Gmail, Docs, Drive, Calendar,
and Meet that are designed with real-time collaboration and machine
intelligence to help people work smarter and efficiently. In 2024, Google took
a step on a journey
to make AI more helpful for everyone with the introduction of Google Gemini, a multimodal AI model. This is basically the artificial-based search engine competing with chatGPT, Deep seek, Microsoft
Co-Pilot, and others.
Google Financial and Business Performance
From Eric Schmidt to Sundar Pichai, Google still has become the main company of technology. Some
people always waited for the next breakthrough and innovation. Because of its
radical innovations in technological sectors. It has impacted on the financial
conditions and performance of this company.
Total Assets, Total Liabilities, and Total Stockholders’ equity of Alphabet Inc From 2014 to 2024
|
Years |
Total Assets |
Total liabilities |
Total stockholders’ equity |
|
US Dollars |
US Dollars |
US Dollars |
|
|
2014 |
129.1 billion |
25.3 billion |
103.8 billion |
|
2015 |
147.6 billion |
27.3 billion |
120.3 billion |
|
2016 |
167.4 billion |
28.4 billion |
139.0 billion |
|
2017 |
197.2 billion |
44.7 billion |
152.5 billion |
|
2018 |
232.7 billion |
55.1 billion |
177.6 billion |
|
2019 |
275.9 billion |
74.4 billion |
201.4 billion |
|
2020 |
319.6 billion |
97.0 billion |
222.5 billion |
|
2021 |
359.2 billion |
107.6 billion |
251.6 billion |
|
2022 |
365.2 billion |
109.1 billion |
256.1 billion |
|
2023 |
402.3 billion |
119.1 billion |
283.3 billion |
|
2024 |
450.2 billion |
121.1 billion |
325.0 billion |
|
Source: Alphabet Annual Report, 2014-2024 |
|||
From time to time, Google has shown incredible performance in
financial results annually. Based on the Alphabet Annual Report / 10K, in 2014,
the total assets of Alphabet were just USD 129 billion with total liabilities
around USD 25.3 billion. Meanwhile, in 2024, the total assets of Alphabet reached USD 450
billion and total liabilities around USD 121 billion. It is shown that Google
and the Alphabet are still in a growing trend.
Total Revenue and Net Income of Alphabet Inc From 2014 to 2024
|
Years |
Total Revenue |
Net Income |
|
US Dollars |
US Dollars |
|
|
2014 |
66.0 billion |
14.1 billion |
|
2015 |
74.9 billion |
16.3 billion |
|
2016 |
90.2 billion |
19.4 billion |
|
2017 |
110.8 billion |
12.6 billion |
|
2018 |
136.8 billion |
30.7 billion |
|
2019 |
161.8 billion |
34.3 billion |
|
2020 |
182.5 billion |
40.2 billion |
|
2021 |
257.6 billion |
76.0 billion |
|
2022 |
282.8 billion |
59.9 billion |
|
2023 |
307.9 billion |
73.7 billion |
|
2024 |
350.0 billion |
100.1 billion |
|
Source : Alphabet Annual Report, 2014-2024 |
||
In the income statement of Google/ Alphabet Inc from 2014 to 2024
on the annual report / 10K, Alphabet Inc has always
shown positive growth of income annually. In 2014,
the revenue reached USD 66 billion, and the net income of Alphabet Inc reached
USD 14.1 billion. Meanwhile, in 2024, the total revenue of Google has reached
USD 350 billion. It increased more than 3 times compared to the period 2014.
Furthermore, net income is also in the positive trend, and it becomes around
USD 100.1 billion. Based on the Alphabet annual report in 2024 (10K), Google
advertising (Google Search & other, YouTube ads, Google Network), and
google cloud still become the main backbone of revenue to Alphabet.
The Source of Revenue of Alphabet Inc/ Google in 2024
|
Source of Revenue Alphabet Inc |
Total Revenue in 2024 |
|
|
(In Million USD) |
||
|
Google Service |
|
|
|
|
Google advertising |
|
|
|
Google Search & other |
198,084 |
|
|
YouTube ads |
36,147 |
|
|
Google Network |
30,359 |
|
|
Total Revenue Google Advertising
|
264,590 |
|
|
|
|
|
|
Google subscriptions, platforms, and devices |
40,340 |
|
|
|
|
|
Google Services total
|
304,930 |
|
|
Google Cloud |
43,229 |
|
|
Other Bets |
1,648 |
|
|
Hedging gains (losses) |
211 |
|
|
|
|
|
|
Total Revenue |
|
350,018 |
Furthermore, according to its annual report of 2024, The Source of
Revenue in Google/ Alphabet Inc can be traced based on its business. In the table
above, advertising still became the main source of money to Google with contributing USD 264 billion of Alphabet's total
revenue in 2024 reaching USD 350 billion. Specifically, the advertising from
Google search still become main contributors with total revenue of USD 198
billion, followed by YouTube ads contributing USD 36 billion, and google
network reaching USD 30 billion. Meanwhile, its google cloud business also has
a huge contribution with total revenue reaching USD
43 billion.
The Debt to Assets Ratio (DAR), Debt to Equity Ratio (DER), and Net Profit Margin (NPM) of Alphabet Inc From 2014 to 2024
|
Years |
Debt to Equity Ratio (DER) |
Debt to Assets Ratio (DAR) |
Net Profit Margin (NPM) |
|
(Liabilities / Equities) |
(Liabilities/ Assets) |
(Net Income/ Revenue) |
|
|
2014 |
0.244 |
0.196 |
0.214 |
|
2015 |
0.227 |
0.185 |
0.218 |
|
2016 |
0.204 |
0.170 |
0.215 |
|
2017 |
0.293 |
0.227 |
0.114 |
|
2018 |
0.310 |
0.237 |
0.224 |
|
2019 |
0.369 |
0.270 |
0.212 |
|
2020 |
0.436 |
0.304 |
0.220 |
|
2021 |
0.428 |
0.300 |
0.295 |
|
2022 |
0.426 |
0.299 |
0.212 |
|
2023 |
0.420 |
0.300 |
0.239 |
|
2024 |
0.372 |
0.269 |
0.286 |
|
Average |
0.339 |
0.250 |
0.223 |
Based on some financial Ratios from Balance Sheets and Income
statements, there are some indicators that can be measured, Debt to Equity
ratio (DER), Debt to Assets Ratio (DAR), and Net Profit Margin (NPM).
Financially, the Debt to Equity ratio (DER) of Google from 2014 to 2024 is
around 0.339. This value means every 1 US dollar of total equity equivalent to
0.33 US dollars of total liabilities. Based on the Debt asset ratio (DAR), the
DAR’s average value of Alphabet from 2014 to 2024 is around 0.25. This value means
that every 1 US Dollars of Equities, equivalent to 0.25 of liabilities.
Meanwhile, in the Net Profit margin ratio (NPM), the average NPM ratio is about
0.22. This value means that 22% of revenue becomes net income for Google /
Alphabet.
Nowadays, with the positive financial performance of Google, some shareholders are
happy and their investment can have an impact on the growth of Google's stock price. By the way, some of the biggest shareholders
of Google/ alphabet’s shares are The
Vanguard Group, Inc (founded by Jack Bogle) with 7.22% of the stake, BlackRock Fund Advisors (Founded by
Larry Fink, Robert S. Kapito, and Susan Wagner) 4.37% of the stake, and Fidelity Management & Research Co
4.12% of the stake.
Bibliography of Google Financial Performance from Time to Time
Alphabet.2025. Alphabet 10-K. Accessed via https://abc.xyz/investor/ on March 23rd, 2025.
Wikipedia. 2024. Google. Accessed via https://en.wikipedia.org/wiki/Google on February 22th, 2024,
Wikipedia. 2024. Alphabet. Accessed via https://en.wikipedia.org/wiki/Alphabet_Inc. on February 22nd, 2024.