Alphabet Inc Class C (GOOG)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.84 | 1.95 | 2.08 | 2.15 | 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 |
| Quick ratio | 1.66 | 1.76 | 1.90 | 1.98 | 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 |
| Cash ratio | 1.07 | 1.15 | 1.29 | 1.40 | 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 |
The current ratio of Alphabet Inc Class C, a measure of its short-term liquidity, has shown a gradual decline from 3.66 as of March 31, 2020, to 1.84 as of December 31, 2024. This trend indicates a decrease in the company's ability to cover its short-term liabilities with its current assets over the period.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, declined from 3.51 on March 31, 2020, to 1.66 on December 31, 2024. This suggests a decreasing ability to meet short-term obligations without relying on the sale of inventory.
The cash ratio, focusing solely on cash and cash equivalents as a proportion of current liabilities, also exhibited a downward trend from 2.92 on March 31, 2020, to 1.07 on December 31, 2024. This indicates a reduced capacity to settle short-term debts solely using cash reserves.
Overall, the decreasing trend in the liquidity ratios of Alphabet Inc Class C over the specified period raises concerns about its ability to meet short-term obligations and highlights the importance of closely monitoring its liquidity position in the future.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 34.84 | 34.99 | 36.76 | 34.86 | 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 |
The cash conversion cycle of Alphabet Inc Class C has shown fluctuations over the reported periods. The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
From March 31, 2020, to December 31, 2024, the cash conversion cycle ranged from a low of 32.04 days to a high of 45.09 days. The trend highlights a general stability with fluctuations around the mid-30s to mid-40s range over the period analyzed.
A shorter cash conversion cycle is generally considered favorable as it indicates that the company's operating efficiency in managing its working capital is improving. Conversely, a longer cash conversion cycle may suggest potential issues in managing inventory, collecting receivables, or paying suppliers.
Alphabet Inc Class C experienced a decrease in its cash conversion cycle from December 31, 2022, to September 30, 2024, which could indicate improvements in managing its working capital and generating cash flows more efficiently.
Overall, a detailed analysis of the components contributing to the cash conversion cycle, such as inventory turnover, accounts receivable turnover, and accounts payable turnover, would provide deeper insights into the company's operational efficiency and liquidity management.