Alphabet Inc Class C (GOOG)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 1.94 | 1.87 | 2.02 | 2.20 | 2.22 | 2.31 | 2.64 | 2.74 | 2.80 | 2.86 | 3.03 | 2.95 | 2.96 | 3.28 | 3.27 | 3.51 | 3.25 | 3.63 | 3.85 | 3.80 |
| 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 |
Alphabet Inc's liquidity ratios have shown a relatively stable trend over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has consistently been above 2, indicating a healthy level of liquidity. However, there has been a slight decline in the current ratio from Q1 2023 to Q4 2023.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, has also remained relatively stable above 2 across all quarters. This suggests that Alphabet Inc has a strong ability to meet its short-term liabilities without relying on inventory liquidation.
The cash ratio, which focuses solely on cash and cash equivalents as a percentage of current liabilities, has shown a downward trend from Q1 2022 to Q4 2023. Despite this decline, the cash ratio has consistently been above 1, indicating that Alphabet Inc holds sufficient cash to cover its immediate obligations.
Overall, Alphabet Inc's liquidity ratios paint a picture of a company with strong liquidity position and the ability to meet its short-term obligations comfortably. The slight declines in some ratios should be monitored to ensure that the company maintains its strong liquidity position in the future.
See also:
Alphabet Inc Class C Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 36.80 | 42.89 | 40.50 | 41.09 | 45.09 | 37.49 | 41.33 | 41.67 | 41.12 | 41.60 | 40.42 | 37.21 | 42.10 | 38.12 | 32.04 | 36.45 | 38.99 | 35.05 | 35.93 | 33.88 |
The cash conversion cycle for Alphabet Inc has varied over the past eight quarters, ranging from a low of 37.53 days in Q3 2022 to a high of 44.85 days in Q4 2022. In Q4 2023, the cash conversion cycle was 36.43 days, indicating that the company was able to efficiently convert its investments in inventory and accounts receivable into cash within a relatively short period.
However, despite the improvement in Q4 2023, the trend over the past year has shown fluctuations in the cash conversion cycle, with Q3 2023 and Q2 2023 experiencing longer cycles compared to the previous quarters. This suggests that Alphabet Inc may have faced challenges in managing its working capital effectively during those periods.
Overall, monitoring the cash conversion cycle is important as it provides insights into the company's efficiency in managing its cash flow and working capital. Alphabet Inc should focus on maintaining a healthy balance between inventory turnover, accounts receivable collection, and accounts payable management to optimize its cash conversion cycle and improve its overall financial performance.