Alphabet Inc Class C (GOOG)
Debt-to-equity 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-equity ratio | 0.04 | 0.04 | 0.05 | 0.06 | 0.02 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,300,000K ÷ $283,379,000K
= 0.04
The debt-to-equity ratio of Alphabet Inc has shown consistency in recent years. The ratio has been relatively stable, ranging from 0.02 to 0.06 over the past five years. This stability indicates that the company has maintained a conservative capital structure, utilizing a lower level of debt in relation to its equity. The decrease in the ratio from 0.06 in 2020 to 0.05 in 2023 suggests a reduction in the company's reliance on debt financing, which may positively impact its financial risk and solvency. Overall, the consistent low debt-to-equity ratio demonstrates Alphabet Inc's prudent approach to capitalization and financial risk management.
Peer comparison
Dec 31, 2023