Alphabet Inc Class C (GOOG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 |
| Debt-to-capital ratio | 0.03 | 0.04 | 0.04 | 0.05 | 0.06 |
| Debt-to-equity ratio | 0.03 | 0.04 | 0.04 | 0.05 | 0.06 |
| Financial leverage ratio | 1.39 | 1.42 | 1.43 | 1.43 | 1.44 |
Alphabet Inc Class C has demonstrated consistent improvement in its solvency ratios over the years, indicating a strong financial position and efficient management of debt. The Debt-to-assets ratio has decreased from 0.04 in 2020 to 0.02 in 2024, showing that only a small percentage of the company's assets are funded by debt.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have both shown a downward trend, decreasing from 0.06 in 2020 to 0.03 in 2024. This indicates that the company is relying less on debt financing in relation to its capital and equity, thereby reducing its financial risk.
Furthermore, the Financial leverage ratio has shown a consistent decline from 1.44 in 2020 to 1.39 in 2024, signifying that the company is becoming less reliant on debt to finance its operations and investments.
Overall, these solvency ratios suggest that Alphabet Inc Class C has a strong financial foundation and is effectively managing its debt levels, which bodes well for its long-term financial stability and growth prospects.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 579.33 | 279.30 | 200.80 | 263.24 | 357.16 |
The interest coverage ratio for Alphabet Inc Class C has shown fluctuations over the years based on the provided data. In December 2020, the interest coverage ratio was very strong at 357.16, indicating that Alphabet Inc was comfortably able to cover its interest expenses with its operating income.
By December 2021, the interest coverage ratio had decreased to 263.24, which may suggest a slight decrease in the company's ability to cover its interest payments from operating earnings.
The ratio further decreased to 200.80 by December 2022, indicating a potential increase in the company's financial risk or a decline in operating income relative to interest expenses.
However, by December 2023, the interest coverage ratio improved to 279.30, which could signal a positive change in Alphabet Inc's ability to cover its interest costs.
In December 2024, the interest coverage ratio significantly increased to 579.33, highlighting a strong ability to cover interest expenses. Overall, fluctuations in the interest coverage ratio over the years suggest changes in Alphabet Inc's financial health and its ability to meet its debt obligations with operating income.