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.