Alphabet Inc Class A (GOOGL)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 115,327,000 | 108,836,000 | 101,628,000 | 96,149,000 | 86,025,000 | 78,781,000 | 73,802,000 | 70,953,000 | 71,685,000 | 78,967,000 | 85,774,000 | 88,738,000 | 91,080,000 | 85,303,000 | 75,569,000 | 61,798,000 | 48,217,000 | 40,196,000 | 35,440,000 | 39,322,000 |
| Interest expense (ttm) | US$ in thousands | 245,000 | 263,000 | 322,000 | 322,000 | 308,000 | 329,000 | 314,000 | 354,000 | 357,000 | 384,000 | 360,000 | 353,000 | 346,000 | 282,000 | 253,000 | 190,000 | 135,000 | 99,000 | 74,000 | 86,000 |
| Interest coverage | 470.72 | 413.83 | 315.61 | 298.60 | 279.30 | 239.46 | 235.04 | 200.43 | 200.80 | 205.64 | 238.26 | 251.38 | 263.24 | 302.49 | 298.69 | 325.25 | 357.16 | 406.02 | 478.92 | 457.23 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $115,327,000K ÷ $245,000K
= 470.72
Alphabet Inc Class A's interest coverage ratio has displayed a notable fluctuation over the periods provided. As of December 31, 2024, the interest coverage ratio stood at 470.72, indicating a strong ability to cover interest expenses with operating profits. This is a substantial increase compared to the ratio of 200.80 reported on December 31, 2022.
The interest coverage ratios generally remained high, above 200, in the preceding quarters, reflecting robust earnings relative to interest obligations. However, there was a slight dip in the ratio to 200.43 on March 31, 2023, which was followed by a gradual increase in subsequent periods.
It is worth noting that Alphabet Inc Class A's interest coverage ratio exceeded 400 in multiple quarters, underscoring the company's sound financial position and ability to service its debt obligations comfortably. Despite some fluctuations, the overall trend indicates a strong capacity to meet interest payments through operating income. It would be advisable to monitor the interest coverage ratio in future periods to assess the company's financial health and debt repayment capacity.
Peer comparison
Dec 31, 2024