Alphabet Inc Class C (GOOG)

Financial leverage 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
Total assets	US$ in thousands	402,392,000	396,711,000	383,044,000	369,491,000	365,264,000	358,255,000	355,185,000	357,096,000	359,268,000	347,403,000	335,387,000	327,095,000	319,616,000	299,243,000	278,492,000	273,403,000	275,909,000	263,044,000	257,101,000	245,349,000
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
Financial leverage ratio		1.42	1.45	1.43	1.42	1.43	1.41	1.39	1.41	1.43	1.42	1.41	1.42	1.44	1.41	1.34	1.34	1.37	1.35	1.34	1.34

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 remained relatively stable over the past eight quarters, ranging from 1.39 to 1.45. The ratio indicates that for every dollar of equity, the company has between $1.39 to $1.45 of debt.

A ratio above 1 suggests that a company is using debt to finance its operations, which can amplify returns but also increase risk. In this case, Alphabet Inc's consistent ratio above 1 indicates that the company relies on debt to support its growth and operations.

Overall, the stability of the financial leverage ratio suggests a balanced approach to capital structure management, where Alphabet Inc maintains a suitable mix of debt and equity to support its business activities. It will be important to monitor this ratio in future periods to assess any significant changes in the company's leverage position.