Alphabet Inc Class C (GOOG)

Financial leverage ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total assets US$ in thousands 402,392,000 365,264,000 359,268,000 319,616,000 275,909,000
Total stockholders’ equity US$ in thousands 283,379,000 256,144,000 251,635,000 222,544,000 201,442,000
Financial leverage ratio 1.42 1.43 1.43 1.44 1.37

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $402,392,000K ÷ $283,379,000K
= 1.42

The financial leverage ratio of Alphabet Inc has shown a relatively stable trend over the past five years, ranging from 1.37 to 1.44. The ratio indicates that the company has been using a moderate level of financial leverage to finance its operations and investments during this period. A financial leverage ratio above 1 suggests that the company has more debt in its capital structure compared to equity. Despite slight fluctuations, the ratio has generally remained around 1.4, indicating a consistent approach to managing financial leverage over the years. This level of leverage implies a balanced mix of debt and equity financing, which allows the company to benefit from tax advantages associated with debt while maintaining a reasonable level of financial risk.


Peer comparison

Dec 31, 2023


See also:

Alphabet Inc Class C Financial Leverage