Alphabet Inc Class C (GOOG)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 305,559,000 | 281,279,000 | 257,637,000 | 182,527,000 | 161,857,000 |
| Total current assets | US$ in thousands | 171,530,000 | 164,795,000 | 188,143,000 | 174,296,000 | 152,578,000 |
| Total current liabilities | US$ in thousands | 81,814,000 | 69,300,000 | 64,254,000 | 56,834,000 | 45,221,000 |
| Working capital turnover | 3.41 | 2.95 | 2.08 | 1.55 | 1.51 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $305,559,000K ÷ ($171,530,000K – $81,814,000K)
= 3.41
The working capital turnover ratio for Alphabet Inc has shown a consistent and positive trend over the past five years, indicating efficient utilization of working capital to generate sales. The ratio has steadily increased from 1.51 in 2019 to 3.43 in 2023. This suggests that the company has been able to generate an increasing amount of sales revenue relative to its working capital, reflecting effective management of its current assets and liabilities. The upward trend in the working capital turnover ratio reflects improved efficiency in the company's operations, which is a positive indicator for investors and stakeholders. Overall, the increasing working capital turnover ratio suggests that Alphabet Inc has been able to enhance its operational efficiency and optimize the utilization of its working capital to drive sales growth.
Peer comparison
Dec 31, 2023