Alphabet Inc Class C (GOOG)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 24,048,000 | 30,702,000 | 25,929,000 | 25,924,000 | 21,879,000 | 21,984,000 | 17,936,000 | 20,886,000 | 20,945,000 | 23,719,000 | 23,630,000 | 26,622,000 | 26,465,000 | 20,129,000 | 17,742,000 | 19,644,000 | 18,498,000 | 16,032,000 | 16,587,000 | 19,148,000 |
| Short-term investments | US$ in thousands | 86,868,000 | 89,233,000 | 92,403,000 | 89,178,000 | 91,883,000 | 94,275,000 | 107,061,000 | 113,084,000 | 118,704,000 | 118,284,000 | 112,233,000 | 108,482,000 | 110,229,000 | 112,467,000 | 103,338,000 | 97,585,000 | 101,177,000 | 105,145,000 | 104,469,000 | 94,340,000 |
| 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 |
| Cash ratio | 1.36 | 1.39 | 1.52 | 1.67 | 1.64 | 1.76 | 2.04 | 2.16 | 2.17 | 2.30 | 2.44 | 2.44 | 2.41 | 2.75 | 2.77 | 2.92 | 2.65 | 3.09 | 3.27 | 3.25 |
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 of Alphabet Inc, a measure of its ability to cover short-term liabilities with cash and cash equivalents, has exhibited a declining trend over the last eight quarters. The cash ratio decreased from 2.27 in Q1 2022 to 1.51 in Q4 2023. This indicates a lowering ability to cover short-term obligations solely with its cash and cash equivalents. While a high cash ratio signifies a strong liquidity position, the decreasing trend suggests a potential need for Alphabet Inc to manage its cash and cash equivalents more efficiently or explore alternative liquidity management strategies. This declining trend in the cash ratio warrants further investigation into the company's liquidity and cash management practices to ensure its ability to meet short-term obligations.
Peer comparison
Dec 31, 2023