Alphabet Inc Class A (GOOGL)
Cash 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 24,048,000 | 30,702,000 | 25,929,000 | 25,924,000 | 21,879,000 | 21,984,000 | 17,936,000 | 20,886,000 | 20,945,000 | 23,719,000 | 23,630,000 | 26,622,000 | 26,465,000 | 20,129,000 | 17,742,000 | 19,644,000 | 18,498,000 | 16,032,000 | 16,587,000 | 19,148,000 |
| Short-term investments | US$ in thousands | 86,868,000 | 89,233,000 | 92,403,000 | 89,178,000 | 91,883,000 | 94,275,000 | 107,061,000 | 113,084,000 | 118,704,000 | 118,284,000 | 112,233,000 | 108,482,000 | 110,229,000 | 112,467,000 | 103,338,000 | 97,585,000 | 101,177,000 | 105,145,000 | 104,469,000 | 94,340,000 |
| 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 |
| Cash ratio | 1.36 | 1.39 | 1.52 | 1.67 | 1.64 | 1.76 | 2.04 | 2.16 | 2.17 | 2.30 | 2.44 | 2.44 | 2.41 | 2.75 | 2.77 | 2.92 | 2.65 | 3.09 | 3.27 | 3.25 |
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 exhibited a fluctuating trend over the past eight quarters. It stood at 1.51 as of December 31, 2023, before gradually increasing to 1.80 by March 31, 2023. However, in the subsequent quarter, the ratio decreased to 1.64 and continued its downward trajectory to reach 1.53 by September 30, 2023. Notably, the cash ratio showed a peak of 2.27 as of March 31, 2022, before exhibiting a consistent decline in the following quarters.
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A ratio above 1 indicates that the company possesses sufficient liquid assets to cover its short-term obligations. Therefore, a higher cash ratio generally signifies a stronger liquidity position. In the case of Alphabet Inc, the decreasing trend in the cash ratio over the analyzed period suggests a decreasing ability to cover short-term liabilities with cash and cash equivalents. This trend warrants further investigation into the company's cash management and liquidity position to assess the potential impact on its financial health and ability to meet its short-term obligations.
Peer comparison
Dec 31, 2023