Alphabet Inc Class C (GOOG)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	10,300,000	9,900,000	12,400,000	14,000,000	3,958,000
Total stockholders’ equity	US$ in thousands	283,379,000	256,144,000	251,635,000	222,544,000	201,442,000
Debt-to-capital ratio		0.04	0.04	0.05	0.06	0.02

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $10,300,000K ÷ ($10,300,000K + $283,379,000K)
= 0.04

The debt-to-capital ratio of Alphabet Inc has shown a generally stable trend over the past five years. As of December 31, 2023, the ratio stands at 0.04, indicating that the company's debt represents 4% of its total capital structure. This suggests that Alphabet relies more on equity financing rather than debt to fund its operations and investments.

Comparing this to previous years, we observe a slight decrease from 0.05 in 2022 and 0.06 in both 2021 and 2020. However, there was a notable increase from 0.02 in 2019 to 0.06 in 2020, which could indicate a shift in the company's financing strategy during that period.

Overall, Alphabet Inc's low debt-to-capital ratio indicates a conservative approach to leverage, which may provide financial stability and flexibility. A lower ratio also reflects positively on the company's ability to meet its debt obligations and indicates lower financial risk.