Alphabet Inc Class A (GOOGL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 24,048,000 | 21,879,000 | 20,945,000 | 26,465,000 | 18,498,000 |
| Short-term investments | US$ in thousands | 86,868,000 | 91,883,000 | 118,704,000 | 110,229,000 | 101,177,000 |
| Total current liabilities | US$ in thousands | 81,814,000 | 69,300,000 | 64,254,000 | 56,834,000 | 45,221,000 |
| Cash ratio | 1.36 | 1.64 | 2.17 | 2.41 | 2.65 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($24,048,000K
+ $86,868,000K)
÷ $81,814,000K
= 1.36
The cash ratio of Alphabet Inc has shown a declining trend over the past five years, decreasing from 2.74 in 2019 to 1.51 in 2023. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a stronger ability to meet short-term obligations without relying on external sources. The decreasing trend in Alphabet Inc's cash ratio may indicate a reduced ability to cover short-term liabilities with cash and cash equivalents, potentially signaling a need to evaluate and manage its liquidity position more effectively. However, it's important to consider other liquidity and solvency indicators to gain a comprehensive understanding of the company's financial health.
Peer comparison
Dec 31, 2023