Alphabet Inc Class A (GOOGL)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 10,883,000 | 11,870,000 | 9,900,000 | 12,400,000 | 14,000,000 |
| Total stockholders’ equity | US$ in thousands | 325,084,000 | 283,379,000 | 256,144,000 | 251,635,000 | 222,544,000 |
| Debt-to-capital ratio | 0.03 | 0.04 | 0.04 | 0.05 | 0.06 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $10,883,000K ÷ ($10,883,000K + $325,084,000K)
= 0.03
The debt-to-capital ratio of Alphabet Inc Class A has shown a consistent decline over the past five years, decreasing from 0.06 as of December 31, 2020, to 0.03 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt financing in relation to its overall capital structure. A lower debt-to-capital ratio suggests a lower financial risk and a potentially stronger financial position for the company. Alphabet Inc Class A's decreasing trend in debt-to-capital ratio signifies a prudent debt management strategy and a healthier balance sheet composition.
Peer comparison
Dec 31, 2024