Alphabet Inc Class A (GOOGL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 163,711,000 | 171,530,000 | 164,795,000 | 188,143,000 | 174,296,000 |
| Total current liabilities | US$ in thousands | 89,122,000 | 81,814,000 | 69,300,000 | 64,254,000 | 56,834,000 |
| Current ratio | 1.84 | 2.10 | 2.38 | 2.93 | 3.07 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $163,711,000K ÷ $89,122,000K
= 1.84
The current ratio of Alphabet Inc Class A has shown a declining trend over the years, indicating a potential weakening in its short-term liquidity position. As of December 31, 2020, the current ratio stood at 3.07, suggesting a healthy ability to cover its short-term obligations with current assets. However, this ratio decreased to 2.93 by December 31, 2021, and further declined to 2.38 by December 31, 2022, indicating a reduced ability to meet short-term liabilities.
The downward trend continued with the current ratio dropping to 2.10 by December 31, 2023, and further to 1.84 by December 31, 2024. These figures indicate a significant decrease in the company's ability to cover its short-term obligations with current assets over the years. This declining trend may raise concerns about Alphabet Inc Class A's short-term liquidity and its ability to meet immediate payment obligations.
Investors and stakeholders might closely monitor this trend to assess the company's liquidity risk and financial health, as a low current ratio could indicate potential challenges in meeting short-term obligations. It is essential for the company to carefully manage its current assets and liabilities to maintain a healthy liquidity position and ensure ongoing operations without disruptions.
Peer comparison
Dec 31, 2024