Alphabet Inc Class C (GOOG)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 10,883,000 | 9,500,000 | 8,900,000 | 9,000,000 | 11,870,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 325,084,000 | 314,119,000 | 300,753,000 | 292,844,000 | 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 |
| Debt-to-equity ratio | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.07 | 0.01 | 0.02 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,883,000K ÷ $325,084,000K
= 0.03
The debt-to-equity ratio of Alphabet Inc Class C has shown a consistent downward trend over the reported periods, indicating a strengthening financial position in terms of leverage. The ratio decreased from 0.02 as of March 31, 2020, to 0.03 as of December 31, 2024. This suggests that the company has been relying less on debt financing relative to equity financing during this period.
A lower debt-to-equity ratio signifies lower financial risk and less dependence on external borrowing to finance operations or investments. It indicates that the company has a healthier capital structure with a higher proportion of equity compared to debt.
The downward trend in the debt-to-equity ratio is a positive sign for investors and creditors as it reflects Alphabet Inc Class C's ability to manage its debt levels effectively while maintaining a solid equity base. As of December 31, 2024, with a debt-to-equity ratio of 0.03, the company appears to have a prudent balance between debt and equity in its capital structure, which can contribute to financial stability and sustainability.
Peer comparison
Dec 31, 2024