Alphabet Inc Class A (GOOGL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 23,466,000 | 19,959,000 | 27,225,000 | 24,493,000 | 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 |
| Short-term investments | US$ in thousands | 72,191,000 | 73,271,000 | 73,500,000 | 83,597,000 | 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 |
| Total current liabilities | US$ in thousands | 89,122,000 | 80,803,000 | 77,913,000 | 76,997,000 | 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 |
| Cash ratio | 1.07 | 1.15 | 1.29 | 1.40 | 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 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($23,466,000K
+ $72,191,000K)
÷ $89,122,000K
= 1.07
The cash ratio of Alphabet Inc Class A has shown a declining trend over the periods from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its current liabilities with its available cash and cash equivalents. As of December 31, 2024, the cash ratio stood at 1.07, indicating that the company had $1.07 in cash and cash equivalents for every $1 of current liabilities.
The decreasing trend in the cash ratio may indicate a reduction in Alphabet Inc's ability to meet its short-term obligations solely with its cash reserves. This could be attributed to various factors such as increased investment in projects, acquisitions, or dividend payments that have led to a lower proportion of cash relative to current liabilities.
It is important to monitor the cash ratio closely as it provides insights into the company's liquidity and short-term financial health. A declining cash ratio may signal potential liquidity challenges that may need to be addressed to ensure the company's ability to meet its short-term obligations in the future.
Peer comparison
Dec 31, 2024