Alphabet Inc Class A (GOOGL)
Quick 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 | 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 |
| Receivables | US$ in thousands | 52,340,000 | 49,104,000 | 47,087,000 | 44,552,000 | 47,964,000 | 41,020,000 | 38,804,000 | 36,036,000 | 40,258,000 | 36,176,000 | 37,073,000 | 35,622,000 | 40,270,000 | 34,800,000 | 32,851,000 | 28,499,000 | 31,384,000 | 25,513,000 | 21,595,000 | 23,735,000 |
| 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 |
| Quick ratio | 1.66 | 1.76 | 1.90 | 1.98 | 1.94 | 1.87 | 2.02 | 2.20 | 2.22 | 2.31 | 2.64 | 2.74 | 2.80 | 2.86 | 3.03 | 2.95 | 2.96 | 3.28 | 3.27 | 3.51 |
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 been steadily decreasing over the analyzed period, indicating a potential decline in the company's short-term liquidity and ability to meet its immediate financial obligations. The quick ratio stood at 3.51 as of March 31, 2020, suggesting a healthy liquidity position with $3.51 in liquid assets available to cover each dollar of current liabilities.
However, the quick ratio gradually decreased to 1.66 as of December 31, 2024, signaling a significant reduction in liquidity. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations without relying on selling inventory or receiving payments on outstanding accounts receivable.
The decreasing trend in the quick ratio over the analyzed period may raise concerns about Alphabet Inc Class A's ability to efficiently manage its short-term liquidity and meet its financial commitments in a timely manner. Investors and stakeholders should closely monitor the company's liquidity position and management's strategies to address any potential liquidity challenges.
Peer comparison
Dec 31, 2024