Stock Analysis on Net

Alphabet Inc. (NASDAQ:GOOG)

$24.99

Current Ratio
since 2005

Microsoft Excel

Calculation

Alphabet Inc., current ratio, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in millions


The analysis of the financial data over the years reveals several notable trends in the liquidity position of the company.

Current Assets
There is a consistent upward trend in current assets from 2005 through 2021, starting at US$9,001 million and reaching a peak of US$188,143 million in 2021. After this peak, current assets declined in 2022 and 2023, but still remained significantly higher than at the beginning of the period, ending at US$163,711 million in 2024.
Current Liabilities
Current liabilities have increased substantially over the years, starting from a relatively low base of US$745 million in 2005 and escalating sharply to US$64,254 million by 2021. A continuous growth pattern is visible, with liabilities rising steadily to US$89,122 million by 2024. The pace of increase in liabilities is notably strong, especially after 2009.
Current Ratio
The current ratio demonstrates a declining trend over the entire period. Beginning at a very high ratio of 12.08 in 2005, it steadily decreased to a value of 2.38 by 2022, and further down to 1.84 in 2024. Notably, the ratio fell sharply between 2009 and 2010 from 10.62 to 4.16, and generally continued declining, indicating a reduction in short-term liquidity coverage relative to current liabilities.

Overall, the company has shown robust growth in current assets, but current liabilities have increased at an even faster rate, resulting in a significant reduction in the current ratio. This suggests a decreased buffer for meeting short-term obligations with short-term assets over time, potentially pointing towards increased liquidity risk or a change in working capital management strategy. Despite the substantial asset base, the declining liquidity ratios warrant careful monitoring to ensure short-term financial stability.


Comparison to Competitors

Alphabet Inc., current ratio, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).


Comparison to Sector (Media & Entertainment)


Comparison to Industry (Communication Services)