Alphabet Inc Class C (GOOG)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 23,466,000 24,048,000 21,879,000 20,945,000 26,465,000
Short-term investments US$ in thousands 72,191,000 86,868,000 91,883,000 118,704,000 110,229,000
Total current liabilities US$ in thousands 89,122,000 81,814,000 69,300,000 64,254,000 56,834,000
Cash ratio 1.07 1.36 1.64 2.17 2.41

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($23,466,000K + $72,191,000K) ÷ $89,122,000K
= 1.07

The cash ratio for Alphabet Inc Class C has shown a gradual decline from 2.41 in December 2020 to 1.07 in December 2024. This indicates a decreasing ability of the company to cover its short-term liabilities solely with cash and cash equivalents. While a cash ratio above 1 is generally considered healthy, the downward trend suggests that Alphabet Inc Class C may have been deploying its cash reserves for other purposes such as investments, acquisitions, or operational expenses. Investors and stakeholders may want to monitor this trend closely to assess the company's liquidity position and financial health.


See also:

Alphabet Inc Class C Cash Ratio