Alphabet Inc Class A (GOOGL)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — — — 44.34 57.83 54.95 47.27 39.24 60.76 85.05 94.82 81.40 107.53 101.19 116.39 95.42 93.40 84.21
Receivables turnover 6.67 6.89 6.93 7.10 6.37 7.18 7.42 7.86 6.99 7.81 7.50 7.58 6.39 6.85 6.68 6.87 5.79 6.71 7.67 7.01
Payables turnover 18.32 20.32 22.98 22.01 17.79 22.59 24.29 30.41 24.61 19.65 27.29 33.89 18.38 22.54 20.72 18.72 15.16 18.14 18.73 18.26
Working capital turnover 4.68 4.41 3.88 3.57 3.40 3.27 3.16 3.04 2.95 2.82 2.50 2.33 2.08 1.95 1.83 1.68 1.55 1.47 1.57 1.56

Alphabet Inc Class A's inventory turnover ratio has shown some fluctuations over the years, starting at 84.21 in March 2020 and reaching a peak of 116.39 in December 2020. However, it has since declined to 44.34 in September 2023, indicating a decrease in the efficiency of managing and selling inventory.

The receivables turnover ratio reflects the company's ability to collect cash from customers. Alphabet Inc Class A's receivables turnover ratio has varied, ranging from 5.79 in December 2020 to 7.86 in March 2023. This suggests that the company's collection efficiency improved during this period.

The payables turnover ratio measures how quickly a company pays its suppliers. Alphabet Inc Class A's payables turnover ratio has also fluctuated, with a notable increase from 15.16 in December 2020 to 33.89 in March 2022. This indicates that the company managed its payables more effectively during this time.

The working capital turnover ratio signifies the efficiency of using working capital to generate sales. The ratio for Alphabet Inc Class A has shown a consistent upward trend, from 1.56 in March 2020 to 4.68 in December 2024. This indicates an improvement in the company's operational efficiency and its ability to generate revenue with the available working capital.

Overall, analyzing Alphabet Inc Class A's activity ratios provides insights into the company's operational efficiency and management of resources in different areas of its business activities.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — 8.23 6.31 6.64 7.72 9.30 6.01 4.29 3.85 4.48 3.39 3.61 3.14 3.83 3.91 4.33
Days of sales outstanding (DSO) days 54.76 52.94 52.64 51.44 57.32 50.81 49.22 46.45 52.20 46.76 48.70 48.15 57.13 53.32 54.64 53.11 63.04 54.41 47.62 52.10
Number of days of payables days 19.93 17.96 15.88 16.58 20.51 16.16 15.03 12.00 14.83 18.58 13.38 10.77 19.86 16.20 17.62 19.50 24.08 20.12 19.49 19.98

The Days of Inventory on Hand (DOH) ratio for Alphabet Inc Class A has shown fluctuations in the past few years. The ratio decreased from 4.33 days as of March 31, 2020, to a low of 3.14 days by December 31, 2020, indicating improved efficiency in managing inventory. However, there was a subsequent increase in the ratio, reaching 9.30 days as of September 30, 2022, before declining to 6.31 days by June 30, 2023. As of December 31, 2023, the ratio was not reported. Overall, there seem to be some challenges in maintaining consistent inventory turnover efficiency.

The Days of Sales Outstanding (DSO) ratio, which measures how long it takes to collect revenue from credit sales, has also exhibited variability. The ratio ranged from 47.62 days on June 30, 2020, to a peak of 63.04 days by December 31, 2020, before gradually decreasing to 46.45 days by March 31, 2023. The ratio then slightly increased to 54.76 days by December 31, 2024. This indicates some fluctuations in the company's collection period over the years.

In terms of the Number of Days of Payables ratio, which reflects how long a company takes to pay its suppliers, Alphabet Inc Class A has shown a downward trend in the payment period. The ratio declined from 19.98 days on March 31, 2020, to 10.77 days by March 31, 2022, before increasing slightly to 16.58 days by March 31, 2024. This indicates that the company has been managing its payables more efficiently, potentially taking advantage of extended payment terms or negotiating better terms with suppliers.

Overall, it appears that Alphabet Inc Class A has faced challenges in maintaining stable efficiency levels in inventory turnover and revenue collection, while showing improvement in managing payables over the analyzed period. Maintaining a balance among these activity ratios is crucial for the company's operational performance and financial health.

Long-term

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
Fixed asset turnover 2.04 2.10 2.16 2.21 2.27 2.34 2.37 2.41 2.50 2.61 2.62 2.59 2.64 2.52 2.39 2.24 2.14 2.10 2.10 —
Total asset turnover 0.77 0.79 0.79 0.78 0.76 0.74 0.75 0.77 0.77 0.79 0.78 0.76 0.72 0.69 0.65 0.60 0.57 0.57 0.59 0.61

The Fixed Asset Turnover ratio of Alphabet Inc Class A has shown a consistent upward trend from 2.10 in June 2020 to 2.04 in December 2024, indicating that the company is generating more revenue from its fixed assets over time. However, there was a slight decrease in the ratio from June 2022 to March 2023, but it recovered thereafter. This suggests that Alphabet Inc Class A efficiently utilizes its fixed assets to generate sales.

In contrast, the Total Asset Turnover ratio experienced fluctuations over the period, ranging from 0.57 in September 2020 to 0.79 in June 2024. The ratio saw an overall increasing trend from 2020 to 2022, indicating that the company is generating more sales relative to its total assets. However, the ratio remained relatively stable around 0.77 to 0.79 from 2022 onwards.

Overall, the analysis of the long-term activity ratios for Alphabet Inc Class A shows that the company has effectively managed its fixed assets to generate revenues and has maintained a consistent level of sales in relation to its total assets over the years, reflecting a balanced and efficient utilization of its asset base.