Alphabet Inc Class C (GOOG)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	10,883,000	11,870,000	9,900,000	12,400,000	14,000,000
Total stockholders’ equity	US$ in thousands	325,084,000	283,379,000	256,144,000	251,635,000	222,544,000
Debt-to-capital ratio		0.03	0.04	0.04	0.05	0.06

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $10,883,000K ÷ ($10,883,000K + $325,084,000K)
= 0.03

Based on the provided data, Alphabet Inc Class C has been effectively managing its debt levels in relation to its capital structure over the past five years. The debt-to-capital ratio has decreased steadily from 0.06 as of December 31, 2020, to 0.03 as of December 31, 2024. This declining trend indicates that the company has been reducing its reliance on debt financing in comparison to its total capital.

A lower debt-to-capital ratio generally suggests a lower financial risk for the company, as it signifies a smaller proportion of debt in the capital structure relative to equity. Alphabet Inc Class C's decreasing ratio indicates improved solvency and financial stability, which could enhance its creditworthiness in the eyes of creditors and investors.

Overall, the declining trend in Alphabet Inc Class C's debt-to-capital ratio reflects a prudent approach to managing its debt levels, which can contribute to long-term financial health and sustainability.