Alphabet Inc Class A (GOOGL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 24,048,000 | 21,879,000 | 20,945,000 | 26,465,000 | 18,498,000 |
| Short-term investments | US$ in thousands | 86,868,000 | 91,883,000 | 118,704,000 | 110,229,000 | 101,177,000 |
| Receivables | US$ in thousands | 47,964,000 | 40,258,000 | 40,270,000 | 31,384,000 | 27,492,000 |
| Total current liabilities | US$ in thousands | 81,814,000 | 69,300,000 | 64,254,000 | 56,834,000 | 45,221,000 |
| Quick ratio | 1.94 | 2.22 | 2.80 | 2.96 | 3.25 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($24,048,000K
+ $86,868,000K
+ $47,964,000K)
÷ $81,814,000K
= 1.94
The quick ratio of Alphabet Inc has experienced a decreasing trend over the past five years, declining from 3.35 in 2019 to 2.10 in 2023. This may indicate a potential decrease in the company's ability to meet its short-term obligations using its most liquid assets. However, it is important to note that the quick ratio remains above 1.0 for all years, suggesting that Alphabet Inc still possesses an ample level of liquid assets to cover its short-term liabilities. The downward trend should be further investigated to understand the underlying drivers and assess the overall liquidity position of the company in the context of its operations and industry dynamics.
Peer comparison
Dec 31, 2023