Alphabet Inc Class A (GOOGL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 402,392,000 | 365,264,000 | 359,268,000 | 319,616,000 | 275,909,000 |
| Total stockholders’ equity | US$ in thousands | 283,379,000 | 256,144,000 | 251,635,000 | 222,544,000 | 201,442,000 |
| Financial leverage ratio | 1.42 | 1.43 | 1.43 | 1.44 | 1.37 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $402,392,000K ÷ $283,379,000K
= 1.42
The financial leverage ratio of Alphabet Inc has been relatively stable over the past five years, ranging from 1.37 to 1.44. This indicates that the company has maintained a consistent level of leverage in its capital structure. A financial leverage ratio above 1 suggests that the company relies more on debt financing than equity, which can amplify returns but also increase financial risk. While the slight fluctuations in the ratio do not show a significant trend, it is essential for investors and stakeholders to monitor the company's leverage ratio to ensure sustainable financial health and risk management.
Peer comparison
Dec 31, 2023