Alphabet Inc Class C (GOOG)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	305,445,000	294,667,000	287,780,000	283,140,000	281,513,000	282,362,000	277,870,000	270,007,000	257,262,000	238,240,000	219,442,000	195,859,000	181,704,000	171,155,000	165,528,000	166,276,000	161,456,000	155,163,000	148,400,000	142,012,000
Total current assets	US$ in thousands	171,530,000	176,310,000	168,788,000	161,985,000	164,795,000	166,109,000	172,371,000	177,853,000	188,143,000	184,110,000	175,697,000	172,137,000	174,296,000	164,369,000	149,069,000	147,018,000	152,578,000	148,358,000	147,437,000	138,207,000
Total current liabilities	US$ in thousands	81,814,000	86,295,000	77,709,000	68,854,000	69,300,000	65,979,000	61,354,000	61,948,000	64,254,000	61,782,000	55,741,000	55,453,000	56,834,000	48,200,000	43,658,000	40,189,000	45,221,000	39,224,000	37,000,000	34,910,000
Working capital turnover		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	1.50	1.42	1.34	1.37

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $305,445,000K ÷ ($171,530,000K – $81,814,000K)
= 3.40

The working capital turnover ratio measures how efficiently a company is able to utilize its working capital to generate sales revenue. Looking at the trend of Alphabet Inc's working capital turnover ratio over the past eight quarters, we can observe a consistent improvement in efficiency.

From Q1 2022 to Q4 2023, the working capital turnover ratio has increased from 2.33 to 3.43. This indicates that Alphabet Inc has been able to more effectively manage its working capital to support its sales activities. A higher working capital turnover ratio suggests that the company is able to generate more revenue for each dollar of working capital invested.

The steady improvement in the working capital turnover ratio reflects Alphabet Inc's effective management of its current assets and liabilities to support its business operations. This trend is a positive indicator of the company's financial health and operational efficiency.