Alphabet Inc Class A (GOOGL)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 450,256,000 | 402,392,000 | 365,264,000 | 359,268,000 | 319,616,000 |
| Total stockholders’ equity | US$ in thousands | 325,084,000 | 283,379,000 | 256,144,000 | 251,635,000 | 222,544,000 |
| Financial leverage ratio | 1.39 | 1.42 | 1.43 | 1.43 | 1.44 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $450,256,000K ÷ $325,084,000K
= 1.39
Based on the data provided for Alphabet Inc Class A, the financial leverage ratio has shown a gradual decrease over the years, declining from 1.44 as of December 31, 2020, to 1.39 as of December 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A decreasing trend in the financial leverage ratio generally suggests a stronger financial position and lower risk for shareholders, as the company is less dependent on borrowing. It is important to note that a lower financial leverage ratio does not necessarily mean better financial performance, as it could also indicate lower profitability or growth opportunities. Overall, the decreasing trend in Alphabet Inc Class A's financial leverage ratio reflects a prudent approach to managing its capital structure and financial risk over the years.
Peer comparison
Dec 31, 2024