Alphabet Inc Class C (GOOG)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.03 | 0.03 | 0.03 | 0.04 | 0.01 |
| Debt-to-capital ratio | 0.04 | 0.04 | 0.05 | 0.06 | 0.02 |
| Debt-to-equity ratio | 0.04 | 0.04 | 0.05 | 0.06 | 0.02 |
| Financial leverage ratio | 1.42 | 1.43 | 1.43 | 1.44 | 1.37 |
Alphabet Inc's solvency ratios provide insight into the company's ability to meet its long-term financial obligations. Based on the data provided, we observe the following trends:
1. Debt-to-assets ratio has remained relatively low over the past five years, ranging from 0.02 to 0.04. This indicates that Alphabet has a low level of debt relative to its total assets, suggesting a conservative approach to financing its operations.
2. Debt-to-capital ratio has also shown a similar trend of staying relatively low, ranging from 0.02 to 0.06. This ratio indicates the proportion of debt in the company's capital structure, with lower values implying lower financial risk.
3. Debt-to-equity ratio has consistently stayed low, ranging from 0.02 to 0.06. This ratio reflects the extent to which a company is leveraged through debt financing compared to equity. Alphabet's low debt-to-equity ratios suggest a healthy balance between debt and equity in its capital structure.
4. Financial leverage ratio has shown an increasing trend over the past five years, ranging from 1.37 to 1.44. This ratio measures the extent to which a company uses debt to finance its assets. The increasing trend in Alphabet's financial leverage ratio indicates a slight rise in the company's reliance on debt for asset financing.
In summary, Alphabet Inc maintains a conservative approach to leverage based on its solvency ratios, with low levels of debt relative to assets, capital, and equity. While there is a slight increase in the financial leverage ratio over the years, the overall solvency position of the company appears to be stable and well-managed.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 279.30 | 200.80 | 263.24 | 357.16 | 397.25 |
To calculate Alphabet Inc's interest coverage ratio, we need data on both operating income and interest expenses for each fiscal year. Without this information provided in the table, it is not possible to compute the interest coverage ratio.
Interest coverage ratio is a key financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio suggests that the company can comfortably cover its interest expenses with its operating income, indicating financial strength and stability. Conversely, a lower interest coverage ratio may raise concerns about the company's ability to meet its debt obligations.
To perform a thorough analysis of Alphabet Inc's interest coverage, we would need to access the company's financial statements or additional data that includes the necessary information on operating income and interest expenses for the relevant years.