Alphabet Inc Class C (GOOG)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 348,963,000 | 305,559,000 | 281,279,000 | 257,637,000 | 182,527,000 |
| Total current assets | US$ in thousands | 163,711,000 | 171,530,000 | 164,795,000 | 188,143,000 | 174,296,000 |
| Total current liabilities | US$ in thousands | 89,122,000 | 81,814,000 | 69,300,000 | 64,254,000 | 56,834,000 |
| Working capital turnover | 4.68 | 3.41 | 2.95 | 2.08 | 1.55 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $348,963,000K ÷ ($163,711,000K – $89,122,000K)
= 4.68
The working capital turnover of Alphabet Inc Class C has exhibited a positive trend over the years, increasing from 1.55 in 2020 to 4.68 in 2024. This indicates that the company is becoming more efficient in utilizing its working capital to generate revenue. A higher working capital turnover ratio suggests that Alphabet Inc is effectively managing its working capital to support its operations and sales activities. The steady increase in the working capital turnover ratio reflects the company's ability to optimize its resources and efficiently convert working capital into sales. It indicates a healthy liquidity position and efficient management of its current assets and liabilities. Overall, the improving trend in the working capital turnover ratio signifies Alphabet Inc's strong operational performance and effective utilization of its working capital resources.
Peer comparison
Dec 31, 2024