Alphabet Inc Class C (GOOG)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover	—	—	—	—	—	44.34	57.83	54.95	47.27	39.24	60.76	85.05	94.82	81.40	107.53	101.19	116.39	95.42	93.40	84.21
Receivables turnover	6.67	6.89	6.93	7.10	6.37	7.18	7.42	7.86	6.99	7.81	7.50	7.58	6.39	6.85	6.68	6.87	5.79	6.71	7.67	7.01
Payables turnover	18.32	20.32	22.98	22.01	17.79	22.59	24.29	30.41	24.61	19.65	27.29	33.89	18.38	22.54	20.72	18.72	15.16	18.14	18.73	18.26
Working capital turnover	4.68	4.41	3.88	3.57	3.40	3.27	3.16	3.04	2.95	2.82	2.50	2.33	2.08	1.95	1.83	1.68	1.55	1.47	1.57	1.56

The activity ratios of Alphabet Inc Class C provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory Turnover:
- The inventory turnover ratio reflects how quickly Alphabet Inc Class C is able to sell its inventory. The trend shows a fluctuating pattern, peaking at 116.39 on December 31, 2020, and then showing a downward trend to a low of 39.24 on September 30, 2022 before recovering slightly. Overall, the company's ability to turn its inventory has varied over the periods analyzed.

2. Receivables Turnover:
- The receivables turnover ratio indicates how efficiently Alphabet Inc Class C collects on its credit sales. The company has maintained a relatively stable receivables turnover ratio over the years, fluctuating within a narrow range, with a slight decrease from 7.42 on June 30, 2023 to 6.67 on December 31, 2024.

3. Payables Turnover:
- The payables turnover ratio reflects how quickly the company pays its suppliers. Alphabet Inc Class C shows fluctuations in its payables turnover ratio, with a notable increase from 15.16 on December 31, 2020, to 33.89 on March 31, 2022. Subsequently, the ratio decreased to 18.32 on December 31, 2024, indicating some changes in payment practices.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently the company generates revenue with its working capital. Alphabet Inc Class C has shown a consistent improvement in this ratio over the years, indicating a positive trend in utilizing working capital to generate revenue, with the ratio increasing from 1.56 on March 31, 2020, to 4.68 on December 31, 2024.

Overall, the analysis of Alphabet Inc Class C's activity ratios highlights the fluctuations and trends in the company's operational efficiency in managing inventory, receivables, payables, and working capital over the periods examined.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Days of inventory on hand (DOH)	days	—	—	—	—	—	8.23	6.31	6.64	7.72	9.30	6.01	4.29	3.85	4.48	3.39	3.61	3.14	3.83	3.91	4.33
Days of sales outstanding (DSO)	days	54.76	52.94	52.64	51.44	57.32	50.81	49.22	46.45	52.20	46.76	48.70	48.15	57.13	53.32	54.64	53.11	63.04	54.41	47.62	52.10
Number of days of payables	days	19.93	17.96	15.88	16.58	20.51	16.16	15.03	12.00	14.83	18.58	13.38	10.77	19.86	16.20	17.62	19.50	24.08	20.12	19.49	19.98

Alphabet Inc Class C's Days of Inventory on Hand (DOH) ratio has fluctuated over the periods analyzed. It decreased from 4.33 days on March 31, 2020, to a low of 3.14 days on December 31, 2020, indicating efficient inventory management. However, the ratio increased gradually to 9.30 days on September 30, 2022, before decreasing to 6.31 days on June 30, 2023. This suggests some variability in the company's inventory management efficiency.

The Days of Sales Outstanding (DSO) ratio reflects the average number of days it takes for Alphabet Inc to collect its accounts receivable. The ratio ranged from a low of 46.45 days on March 31, 2023, to a high of 63.04 days on December 31, 2020. Overall, there was some fluctuation in the DSO ratio, with periodic increases and decreases, indicating variability in the company's collection efficiency.

The Number of Days of Payables ratio represents the average number of days Alphabet Inc takes to pay its suppliers. The ratio decreased from 19.98 days on March 31, 2020, to a low of 10.77 days on March 31, 2022, before showing an increasing trend. The ratio reached 20.51 days on December 31, 2023. A lower ratio suggests that the company is paying its suppliers more quickly, while a higher ratio may indicate a more extended payment period.

Overall, analyzing these activity ratios provides insight into Alphabet Inc's efficiency in managing its inventory, collecting revenue, and paying its suppliers over the analyzed periods.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Fixed asset turnover	2.04	2.10	2.16	2.21	2.27	2.34	2.37	2.41	2.50	2.61	2.62	2.59	2.64	2.52	2.39	2.24	2.14	2.10	2.10	1.89
Total asset turnover	0.77	0.79	0.79	0.78	0.76	0.74	0.75	0.77	0.77	0.79	0.78	0.76	0.72	0.69	0.65	0.60	0.57	0.57	0.59	0.61

The fixed asset turnover ratio for Alphabet Inc Class C has shown a consistent upward trend from March 31, 2020, to December 31, 2024. This ratio measures the efficiency of the company in generating revenue from its fixed assets, such as property, plant, and equipment. The ratio increased from 1.89 in March 2020 to 2.04 in December 2024, indicating that Alphabet Inc has been able to improve its ability to generate revenue from its fixed assets over the period.

On the other hand, the total asset turnover ratio, which reflects the company's ability to generate revenue from all its assets, has shown some fluctuations but generally an increasing trend from March 31, 2020, to December 31, 2024. The ratio increased from 0.61 in March 2020 to 0.77 in December 2024, suggesting that Alphabet Inc has been more efficient in utilizing its total assets to generate revenue over time.

Overall, both the fixed asset turnover and total asset turnover ratios indicate an improvement in the efficiency of Alphabet Inc Class C in generating revenue from its assets, particularly fixed assets, which is a positive sign for the company's operational performance.