Alphabet Inc Class C (GOOG)
Quick 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 | 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 |
| Receivables | US$ in thousands | 47,964,000 | 41,020,000 | 38,804,000 | 36,036,000 | 40,258,000 | 36,176,000 | 37,073,000 | 35,622,000 | 40,270,000 | 34,800,000 | 32,851,000 | 28,499,000 | 31,384,000 | 25,513,000 | 21,595,000 | 23,735,000 | 27,492,000 | 21,081,000 | 21,317,000 | 19,260,000 |
| 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 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($24,048,000K
+ $86,868,000K
+ $47,964,000K)
÷ $81,814,000K
= 1.94
The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. It is calculated as (current assets - inventory) / current liabilities.
For Alphabet Inc, the quick ratio has exhibited a generally healthy trend over the past eight quarters, ranging from 2.10 to 2.85. This indicates that the company has consistently maintained a strong ability to cover its short-term obligations with its liquid assets.
The peak quick ratio of 2.85 in Q1 2022 suggests that Alphabet Inc had a particularly high level of liquid assets relative to its current liabilities at that time. However, the subsequent decline in the quick ratio to 2.01 in Q3 2023, while still at a healthy level, may warrant further monitoring to ensure that the company's liquidity position remains robust.
Overall, the quick ratio data suggests that Alphabet Inc has historically managed its short-term liquidity effectively, providing a favorable indication of its financial stability and ability to meet its immediate financial obligations.
Peer comparison
Dec 31, 2023