Alphabet Inc Class C (GOOG)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	24,048,000	21,879,000	20,945,000	26,465,000	18,498,000
Short-term investments	US$ in thousands	86,868,000	91,883,000	118,704,000	110,229,000	101,177,000
Total current liabilities	US$ in thousands	81,814,000	69,300,000	64,254,000	56,834,000	45,221,000
Cash ratio		1.36	1.64	2.17	2.41	2.65

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($24,048,000K + $86,868,000K) ÷ $81,814,000K
= 1.36

The cash ratio for Alphabet Inc has been decreasing over the past five years, indicating a reduction in the company's ability to cover its short-term liabilities with its cash and cash equivalents. In 2019, the cash ratio was 2.74, and it has since declined to 1.51 in 2023. This downward trend suggests a potential weakening of the company's liquidity position. It is important for Alphabet Inc to closely monitor its cash management and liquidity levels to ensure it can meet its short-term financial obligations.