Alphabet Inc Class A (GOOGL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.01 | 0.01 |
| Debt-to-capital ratio | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.01 | 0.02 |
| Debt-to-equity ratio | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.07 | 0.01 | 0.02 |
| Financial leverage ratio | 1.39 | 1.37 | 1.38 | 1.39 | 1.42 | 1.45 | 1.43 | 1.42 | 1.43 | 1.41 | 1.39 | 1.41 | 1.43 | 1.42 | 1.41 | 1.42 | 1.44 | 1.41 | 1.34 | 1.34 |
The solvency ratios of Alphabet Inc Class A indicate a strong financial position with consistent stability over the analyzed period.
The Debt-to-assets ratio has remained relatively low, ranging from 0.01 to 0.05, indicating that the company has very little debt relative to its total assets. This suggests a conservative approach to leverage and a solid ability to cover its debts with its assets.
The Debt-to-capital ratio has also demonstrated stability over time, staying within the range of 0.01 to 0.06. This ratio highlights the proportion of debt used to finance the company's operations compared to its total capital, showing a controlled level of debt in the capital structure.
The Debt-to-equity ratio has maintained a low level, fluctuating between 0.01 and 0.07. This indicates that the company relies more on equity financing rather than debt, which is a positive sign of financial health and lower financial risk.
The Financial leverage ratio, which measures the extent of a company's debt financing relative to its equity, has been consistent around the range of 1.34 to 1.45. This indicates that Alphabet Inc Class A has a balanced mix of debt and equity in its capital structure, ensuring stability and flexibility in managing its financial obligations.
In conclusion, the solvency ratios of Alphabet Inc Class A suggest a prudent and well-managed approach to financial leverage, with a strong ability to meet its debt obligations and maintain a healthy financial position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Alphabet Inc Class A's interest coverage ratio has displayed fluctuations over the analyzed period. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income. A higher ratio indicates a stronger ability to meet interest obligations.
From March 31, 2020, to September 30, 2021, Alphabet Inc's interest coverage ratio consistently remained well above 300, signaling a robust ability to meet its interest payments. However, there was a gradual decline observed from September 30, 2021, to June 30, 2022, when the ratio dropped to around 200. This decline could potentially reflect increased interest expenses or a decrease in operating income during that period.
The interest coverage ratio continued to fluctuate between 200 and 300 from June 30, 2022, to December 31, 2023, without a clear trend. This fluctuation may indicate variability in the company's ability to cover its interest payments during this period.
Starting from March 31, 2024, the interest coverage ratio showed a significant uptrend, reaching 470.72 by December 31, 2024. This substantial increase suggests a notable improvement in Alphabet Inc's ability to cover its interest expenses with its operating income, indicating a potentially stronger financial position at the end of the analyzed period.
Overall, the analysis of Alphabet Inc Class A's interest coverage ratio reveals both stability and variability in the company's ability to meet its interest obligations over the analyzed period, with a notable improvement in the ratio towards the end of the period.