Alphabet Inc Class A (GOOGL)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 23,466,000 | 24,048,000 | 21,879,000 | 20,945,000 | 26,465,000 |
| Short-term investments | US$ in thousands | 72,191,000 | 86,868,000 | 91,883,000 | 118,704,000 | 110,229,000 |
| Receivables | US$ in thousands | 52,340,000 | 47,964,000 | 40,258,000 | 40,270,000 | 31,384,000 |
| Total current liabilities | US$ in thousands | 89,122,000 | 81,814,000 | 69,300,000 | 64,254,000 | 56,834,000 |
| Quick ratio | 1.66 | 1.94 | 2.22 | 2.80 | 2.96 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($23,466,000K
+ $72,191,000K
+ $52,340,000K)
÷ $89,122,000K
= 1.66
The quick ratio of Alphabet Inc Class A has shown a consistent downward trend over the past five years. Starting at a healthy 2.96 on December 31, 2020, the ratio has gradually decreased to 1.66 as of December 31, 2024. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its short-term liabilities. Although Alphabet Inc Class A's quick ratio has decreased over the years, it still remains above 1, suggesting that the company has maintained good liquidity levels. However, the decreasing trend may indicate a potential decrease in the company's ability to cover its short-term obligations with its current liquid assets. It would be advisable for stakeholders to continue monitoring this ratio to ensure the company's financial health in the future.
Peer comparison
Dec 31, 2024