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.
Peer comparison
Dec 31, 2024