Alphabet Inc Class C (GOOG)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 171,530,000 | 176,310,000 | 168,788,000 | 161,985,000 | 164,795,000 | 166,109,000 | 172,371,000 | 177,853,000 | 188,143,000 | 184,110,000 | 175,697,000 | 172,137,000 | 174,296,000 | 164,369,000 | 149,069,000 | 147,018,000 | 152,578,000 | 148,358,000 | 147,437,000 | 138,207,000 |
| 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 |
| Current ratio | 2.10 | 2.04 | 2.17 | 2.35 | 2.38 | 2.52 | 2.81 | 2.87 | 2.93 | 2.98 | 3.15 | 3.10 | 3.07 | 3.41 | 3.41 | 3.66 | 3.37 | 3.78 | 3.98 | 3.96 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $171,530,000K ÷ $81,814,000K
= 2.10
The current ratio measures Alphabet Inc's ability to meet its short-term obligations by comparing its current assets to its current liabilities. A higher current ratio indicates a greater ability to cover short-term liabilities.
Alphabet's current ratio has shown a declining trend over the past few quarters, decreasing from 2.87 in Q1 2022 to 2.10 in Q4 2023. This decline suggests a potential weakening in the company's short-term liquidity position. However, it's worth noting that the current ratio remains above 2.0, indicating that Alphabet still has a comfortable level of current assets to cover its short-term liabilities.
The decrease in the current ratio may be attributed to changes in the composition of current assets and liabilities, or shifts in the company's operating cycle. It is important for stakeholders to further investigate the components of current assets and liabilities to understand the drivers behind the changing current ratio.
Overall, while the declining trend in the current ratio raises some concerns about Alphabet's short-term liquidity position, the company still maintains a healthy level of current assets relative to current liabilities. Stakeholders should continue monitoring this ratio in conjunction with other financial metrics to assess Alphabet's overall financial health.
Peer comparison
Dec 31, 2023