Alphabet Inc Class A (GOOGL)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 305,445,000 | 294,667,000 | 287,780,000 | 283,140,000 | 281,513,000 | 282,362,000 | 277,870,000 | 270,007,000 | 257,262,000 | 238,240,000 | 219,442,000 | 195,859,000 | 181,704,000 | 171,155,000 | 165,528,000 | 166,276,000 | 161,456,000 | 155,163,000 | 148,400,000 | 142,012,000 |
| Total current assets | US$ in thousands | 171,530,000 | 176,310,000 | 168,788,000 | 161,985,000 | 164,795,000 | 166,109,000 | 172,371,000 | 177,853,000 | 188,143,000 | 184,110,000 | 175,697,000 | 172,137,000 | 174,296,000 | 164,369,000 | 149,069,000 | 147,018,000 | 152,578,000 | 148,358,000 | 147,437,000 | 138,207,000 |
| Total current liabilities | US$ in thousands | 81,814,000 | 86,295,000 | 77,709,000 | 68,854,000 | 69,300,000 | 65,979,000 | 61,354,000 | 61,948,000 | 64,254,000 | 61,782,000 | 55,741,000 | 55,453,000 | 56,834,000 | 48,200,000 | 43,658,000 | 40,189,000 | 45,221,000 | 39,224,000 | 37,000,000 | 34,910,000 |
| Working capital turnover | 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 | 1.50 | 1.42 | 1.34 | 1.37 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $305,445,000K ÷ ($171,530,000K – $81,814,000K)
= 3.40
The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. A higher ratio indicates better utilization of working capital.
Alphabet Inc's working capital turnover has shown a positive trend, increasing from 2.33 in March 2022 to 3.43 in December 2023. This signifies an improvement in the company's ability to generate sales using its working capital.
The rising trend suggests that Alphabet Inc has been able to increase its revenue relative to its working capital, indicating improved operational efficiency and effective management of current assets and liabilities. This could be a result of better inventory management, improved receivables collection, or more efficient payment of obligations.
Overall, the increasing trend in the working capital turnover ratio reflects positively on Alphabet Inc's operational efficiency and financial management. It indicates that the company has been successful in using its working capital to support and drive sales growth.
Peer comparison
Dec 31, 2023