google roic chart
google roic chart
I'll load Google's income statement and balance sheet data, then compute ROIC (NOPAT / Invested Capital).
Here is Alphabet (GOOGL) ROIC for the last 5 fiscal years. NOPAT uses operating income × (1 − effective tax rate); invested capital = total debt + total assets − total current liabilities − (cash + short-term investments).
| Year | Revenue ($B) | Op Income ($B) | NOPAT ($B) | Invested Capital ($B) | ROIC (%) |
|---|---|---|---|---|---|
| 2021 | 257.64 | 78.71 | 65.96 | 170.18 | 38.76 |
| 2022 | 282.84 | 74.84 | 62.93 | 195.06 | 32.26 |
| 2023 | 307.39 | 84.29 | 72.57 | 221.53 | 32.76 |
| 2024 | 350.02 | 112.39 | 93.91 | 276.36 | 33.98 |
| 2025 | 402.96 | 129.17 | 107.49 | 412.24 | 26.07 |
Takeaway: ROIC has been very strong throughout, holding in the low-to-mid 30s through FY24. The notable step down in FY25 (~26%) reflects a ~50% jump in invested capital (heavier capex on AI/cloud infrastructure) outpacing the ~15% growth in NOPAT — capacity being built ahead of monetization. Even at the lower level, this remains well above Alphabet's cost of capital.
give me FCF yield as per this definitin - (Net income - capex + D&A)/(equity + net debt - cash/liquid investments)
I'll load the additional metrics needed: net income, capex, D&A, equity, debt, and cash/investments.
I have everything I need. I'll also pull market cap to express the yield in % terms.
The print statement contaminated the output columns. Let me rerun without it.
Two issues to fix: shares outstanding is in raw count (e.g. 13.5B), so market cap is computed as (shares × price)/1e9 which gives the right trillions — but I'm dividing by 1e9 twice, making it appear as 0.0. Let me correct.
[Response aborted]
why is market cap include in this? just give yield
You're right — that was a sanity check I shouldn't have left in. Stripping it.
| Year | Net Income ($B) | Capex ($B) | D&A ($B) | Adj FCF ($B) | Equity ($B) | Total Debt ($B) | Cash & Liquid Inv ($B) | Net Debt ($B) | Adj Equity Capital ($B) | FCF Yield (%) |
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 76.03 | 24.64 | 12.44 | 63.83 | 251.64 | 14.82 | 139.65 | -124.83 | -12.85 | n/m |
| 2022 | 59.97 | 31.48 | 13.48 | 41.96 | 256.14 | 12.86 | 113.76 | -100.90 | 41.48 | 101.17 |
| 2023 | 73.80 | 32.25 | 11.95 | 53.49 | 283.38 | 11.87 | 110.92 | -99.05 | 73.42 | 72.86 |
| 2024 | 100.12 | 52.54 | 15.31 | 62.89 | 325.08 | 10.88 | 95.66 | -84.77 | 144.65 | 43.48 |
| 2025 | 132.17 | 91.45 | 21.14 | 61.86 | 415.26 | 46.55 | 126.84 | -80.30 | 208.13 | 29.72 |
Caveat on the formula: "Net debt − cash/liquid investments" nets the same cash position twice (it's in net debt and subtracted directly), so for a net-cash company like Alphabet the denominator shrinks substantially. FY21 went negative (NM) and later years are inflated. The steady downtrend through the series reflects (1) equity growing faster than FCF as retained earnings compound, and (2) rising capex/D&A from the AI infrastructure build despite strong earnings. FCF itself is actually flat-to-down in absolute dollars ($63B → $62B FY21→FY25) even as net income nearly doubled — the capex surge is the dominant driver.
If you want a cleaner read, the typical alternative is just (Net Income − Capex + D&A) / Market Cap, or the simpler (Op CF − Capex) / Market Cap. Happy to recompute on either basis.