Alphabet Inc Class A (GOOGL)

Debt-to-equity 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-equity ratio 0.03 0.04 0.04 0.05 0.06

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,883,000K ÷ $325,084,000K
= 0.03

The debt-to-equity ratio of Alphabet Inc Class A has exhibited a decreasing trend over the past five years, declining 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 in relation to equity over the period analyzed. A decreasing debt-to-equity ratio suggests that the company may have been paying off existing debt, generating more earnings from operations, or raising additional equity capital. Overall, this trend reflects a healthier financial structure for Alphabet Inc Class A, with lower financial risk and potentially greater flexibility to pursue strategic initiatives.