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GOOGL Return on Equity (ROE) Analysis

48.7%

Higher than 75% of Communication Services sector peers

Updated 924h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders’ equity; the current 48.7% means Alphabet earns about 48.7 cents for every dollar of equity.

Sector Performance

75th percentile

GOOGL

48.7%

Sector Median

29.8%

Sector Avg

25.0%

Prior Period

38.9%(Jul 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how efficiently a company generates profit from shareholders’ equity; the current 48.7% means Alphabet earns about 48.7 cents for every dollar of equity.

This is far above the Communication Services sector median of 11.2%, placing the stock in the 86th percentile among sector peers. The 8-quarter trend

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about GOOGL?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does GOOGL's Return on Equity (ROE) compare to its sector?

GOOGL's Return on Equity (ROE) of 48.7% compares to a Communication Services sector median of 29.8%, placing it in the 75th percentile.

Who are GOOGL's closest peers by Return on Equity (ROE)?

The closest Communication Services peers by Return on Equity (ROE) include: META (29.8%), NFLX (49.5%), VOD (0.1%), TWTR (-3.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

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