Alphabet Inc Class A (GOOGL)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 112,390,000 | 86,025,000 | 71,685,000 | 91,080,000 | 48,217,000 |
| Interest expense | US$ in thousands | 194,000 | 308,000 | 357,000 | 346,000 | 135,000 |
| Interest coverage | 579.33 | 279.30 | 200.80 | 263.24 | 357.16 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $112,390,000K ÷ $194,000K
= 579.33
The interest coverage ratio for Alphabet Inc Class A has shown fluctuations over the years. As of December 31, 2020, the interest coverage stood at an impressive 357.16, indicating a strong ability to cover interest expenses with operating income. However, by December 31, 2022, the ratio had decreased to 200.80, suggesting a lower capacity to meet interest obligations from operating profits.
Subsequently, by December 31, 2024, Alphabet Inc's interest coverage ratio surged to 579.33, demonstrating a robust capability to service its debt with operating earnings, possibly reflecting improved operational performance or lower interest expenses. Overall, the trend in the interest coverage ratio for Alphabet Inc Class A shows variability, with significant fluctuations over the years, highlighting the importance of monitoring financial performance and debt management strategies.
Peer comparison
Dec 31, 2024