Alphabet Inc Class A (GOOGL)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 305,559,000 | 281,279,000 | 257,637,000 | 182,527,000 | 161,857,000 |
| Total current assets | US$ in thousands | 171,530,000 | 164,795,000 | 188,143,000 | 174,296,000 | 152,578,000 |
| Total current liabilities | US$ in thousands | 81,814,000 | 69,300,000 | 64,254,000 | 56,834,000 | 45,221,000 |
| Working capital turnover | 3.41 | 2.95 | 2.08 | 1.55 | 1.51 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $305,559,000K ÷ ($171,530,000K – $81,814,000K)
= 3.41
The working capital turnover for Alphabet Inc has shown a consistent upward trend over the past five years. The ratio has increased from 1.51 in 2019 to 3.43 in 2023. This suggests that the company has been able to efficiently utilize its working capital to generate revenue. A higher working capital turnover indicates that Alphabet Inc is effectively managing its current assets and liabilities to support its operating activities. The improvement in the working capital turnover reflects the company's ability to generate sales using its current assets and indicates a positive trend in its operational efficiency and liquidity management.
Peer comparison
Dec 31, 2023