Alphabet
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 4/4
| Measure | GOOGL | Checked against | |
|---|---|---|---|
| Owner earnings | $61.86bn | positive | ✓ |
| Return on equity | 31.8% | median 11.7% | ✓ |
| Debt to equity | 0.12x | median 0.79x | ✓ |
| Operating margin | 32.0% | median 15.0% | ✓ |
Passes 4 of 4. To be clear: Warren Buffett has never said anything about Alphabet. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 3/4
| Measure | GOOGL | Checked against | |
|---|---|---|---|
| Return on capital employed | 27.8% | median 10.1% | ✓ |
| Cash conversion | 1.25x | median 1.78x | ✗ |
| Operating margin | 32.0% | median 15.0% | ✓ |
| Debt to equity | 0.12x | median 0.79x | ✓ |
Passes 3 of 4. To be clear: Terry Smith has never said anything about Alphabet. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 3/3
| Measure | GOOGL | Checked against | |
|---|---|---|---|
| Return on capital employed | 27.8% | median 10.1% | ✓ |
| Return on equity | 31.8% | median 11.7% | ✓ |
| Operating margin | 32.0% | median 15.0% | ✓ |
Passes 3 of 3. To be clear: Charlie Munger has never said anything about Alphabet. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 3/4
| Measure | GOOGL | Checked against | |
|---|---|---|---|
| Return on equity | 31.8% | median 11.7% | ✓ |
| Debt to equity | 0.12x | median 0.79x | ✓ |
| Cash conversion | 1.25x | median 1.78x | ✗ |
| Return on equity, sustained | 9 of 10 | 8 of 10 above median | ✓ |
Passes 3 of 4. To be clear: Chuck Akre has never said anything about Alphabet. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 4/4
| Measure | GOOGL | Checked against | |
|---|---|---|---|
| Operating margin | 32.0% | median 15.0% | ✓ |
| Net margin | 32.8% | median 10.2% | ✓ |
| Return on capital employed | 27.8% | median 10.1% | ✓ |
| Operating margin, held or improving | 32.0% | 10-yr median 26.3% | ✓ |
Passes 4 of 4. To be clear: Philip Fisher has never said anything about Alphabet. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 2/2
| Measure | GOOGL | Checked against | |
|---|---|---|---|
| Current ratio | 2.01x | median 1.25x | ✓ |
| Debt to equity | 0.12x | median 0.79x | ✓ |
Passes 2 of 2. To be clear: Walter Schloss has never said anything about Alphabet. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 3/3
| Measure | GOOGL | Checked against | |
|---|---|---|---|
| Current ratio | 2.01x | 2.00x published | ✓ |
| Long-term debt to working capital | 0.45x | 1.00x published | ✓ |
| Positive earnings, ten years running | 10 yrs | 10 published | ✓ |
Passes 3 of 3. To be clear: Benjamin Graham has never said anything about Alphabet. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 1/1
| Measure | GOOGL | Checked against | |
|---|---|---|---|
| Return on capital employed | 27.8% | median 10.1% | ✓ |
Passes 1 of 1. To be clear: Joel Greenblatt has never said anything about Alphabet. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 2/2
| Measure | GOOGL | Checked against | |
|---|---|---|---|
| Debt to equity | 0.12x | median 0.79x | ✓ |
| Net margin | 32.8% | median 10.2% | ✓ |
Passes 2 of 2. To be clear: Peter Lynch has never said anything about Alphabet. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 7.7% | whyThe figure most screeners publish. |
| Operating cash flow | 6.1% | whyBefore capital spending. |
| Free cash flow | 13.7% | whyAfter maintaining the business. |
Spread between highest and lowest: 7.6 percentage points. Same filings, different denominators.
Coverage rating 52 / 100 — Tight. ? Peer standing 42/50Direction 10/30Stability 0/20
Free cash flow payout, last 3 years
| Fiscal year | Payout |
|---|---|
| 2025-12-31 | 13.7% |
| 2024-12-31 | 10.1% |
| 2015-12-31 | 0.3% |
Coverage has deteriorated three years running, 0.3% to 13.7%. Still covered, but moving the wrong way.
83% of the 42 technology here pay out more — comfortable for the sector.
The arithmetic
- GAAP earnings — dividends declared per share $0.830 ÷ diluted EPS $10.81
- Operating cash flow — dividends paid $10,049m ÷ operating cash flow $164,713m
- Free cash flow — dividends paid $10,049m ÷ (operating cash flow $164,713m − capex $91,447m)
Where the figures came from
- 10-K filed 2026-02-05 · accession 0001652044-26-000018
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated tight · when it files.
When this changes
Every figure above is recomputed whenever Alphabet files. The monthly letter carries what filed, what moved, and one finding computed across every company here.