Alphabet Inc Class C (GOOG)

Debt-to-capital 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
Long-term debt	US$ in thousands	10,300,000	9,600,000	10,100,000	10,200,000	9,900,000	9,700,000	10,400,000	11,400,000	12,400,000	12,300,000	12,400,000	13,000,000	14,000,000	13,900,000	2,963,000	3,960,000	3,958,000	3,956,000	3,954,000	3,952,000
Total stockholders’ equity	US$ in thousands	283,379,000	273,202,000	267,141,000	260,894,000	256,144,000	253,626,000	255,419,000	254,004,000	251,635,000	244,567,000	237,565,000	230,013,000	222,544,000	212,920,000	207,322,000	203,659,000	201,442,000	194,969,000	192,192,000	183,472,000
Debt-to-capital ratio		0.04	0.03	0.04	0.04	0.04	0.04	0.04	0.04	0.05	0.05	0.05	0.05	0.06	0.06	0.01	0.02	0.02	0.02	0.02	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 been relatively stable and low over the past eight quarters, ranging from 0.04 to 0.06. This ratio indicates the proportion of the company's capital that is financed through debt, with a lower ratio typically signaling lower financial risk and stronger financial health.

In Q4 2023, the debt-to-capital ratio improved to 0.04, showing a decrease from the previous quarter. This suggests that Alphabet has reduced its reliance on debt financing compared to its total capital.

Overall, Alphabet's consistent low debt-to-capital ratio reflects a conservative approach to financial leverage, which can help mitigate risks associated with high debt levels. It indicates that the company has a strong balance sheet and is in a favorable position to weather economic uncertainties and pursue growth opportunities.