Alphabet Inc Class A (GOOGL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 171,530,000 | 164,795,000 | 188,143,000 | 174,296,000 | 152,578,000 |
| Total current liabilities | US$ in thousands | 81,814,000 | 69,300,000 | 64,254,000 | 56,834,000 | 45,221,000 |
| Current ratio | 2.10 | 2.38 | 2.93 | 3.07 | 3.37 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $171,530,000K ÷ $81,814,000K
= 2.10
The current ratio of Alphabet Inc has exhibited a declining trend over the past five years, decreasing from 3.37 in 2019 to 2.10 in 2023. This indicates a decrease in the company's short-term liquidity and ability to cover its current liabilities with its current assets. While a current ratio above 1 suggests that the company can meet its short-term liabilities, a downward trend could signify potential challenges in managing short-term obligations. It is essential for the company to closely monitor and manage its current assets and liabilities to ensure a healthy liquidity position.
Peer comparison
Dec 31, 2023