Current Ratio
since 2005
Calculation
Alphabet Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Dec 31, 2024 | 1.84 | = | 163,711) | ÷ | 89,122) |
| Dec 31, 2023 | 2.10 | = | 171,530) | ÷ | 81,814) |
| Dec 31, 2022 | 2.38 | = | 164,795) | ÷ | 69,300) |
| Dec 31, 2021 | 2.93 | = | 188,143) | ÷ | 64,254) |
| Dec 31, 2020 | 3.07 | = | 174,296) | ÷ | 56,834) |
| Dec 31, 2019 | 3.37 | = | 152,578) | ÷ | 45,221) |
| Dec 31, 2018 | 3.92 | = | 135,676) | ÷ | 34,620) |
| Dec 31, 2017 | 5.14 | = | 124,308) | ÷ | 24,183) |
| Dec 31, 2016 | 6.29 | = | 105,408) | ÷ | 16,756) |
| Dec 31, 2015 | 4.67 | = | 90,114) | ÷ | 19,310) |
| Dec 31, 2014 | 4.80 | = | 80,685) | ÷ | 16,805) |
| Dec 31, 2013 | 4.58 | = | 72,886) | ÷ | 15,908) |
| Dec 31, 2012 | 4.22 | = | 60,454) | ÷ | 14,337) |
| Dec 31, 2011 | 5.92 | = | 52,758) | ÷ | 8,913) |
| Dec 31, 2010 | 4.16 | = | 41,562) | ÷ | 9,996) |
| Dec 31, 2009 | 10.62 | = | 29,167) | ÷ | 2,747) |
| Dec 31, 2008 | 8.77 | = | 20,178) | ÷ | 2,302) |
| Dec 31, 2007 | 8.49 | = | 17,289) | ÷ | 2,036) |
| Dec 31, 2006 | 10.00 | = | 13,040) | ÷ | 1,305) |
| Dec 31, 2005 | 12.08 | = | 9,001) | ÷ | 745) |
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
| Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Trade Desk Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2024 | 1.84 | 0.68 | 2.98 | 1.22 | 1.86 | 0.73 |
| Dec 31, 2023 | 2.10 | 0.60 | 2.67 | 1.12 | 1.72 | 1.05 |
| Dec 31, 2022 | 2.38 | 0.78 | 2.20 | 1.17 | 1.90 | 1.00 |
| Dec 31, 2021 | 2.93 | 0.85 | 3.15 | 0.95 | 1.71 | 1.08 |
| Dec 31, 2020 | 3.07 | 0.93 | 5.05 | 1.25 | 1.57 | 1.32 |
| Dec 31, 2019 | 3.37 | 0.84 | 4.40 | 0.90 | 1.56 | 0.90 |
| Dec 31, 2018 | 3.92 | 0.79 | 7.19 | 1.49 | 1.48 | 0.94 |
| Dec 31, 2017 | 5.14 | 0.74 | 12.92 | 1.40 | 1.48 | 0.81 |
| Dec 31, 2016 | 6.29 | 0.76 | 11.97 | 1.25 | 1.50 | 1.01 |
| Dec 31, 2015 | 4.67 | 0.68 | 11.25 | 1.54 | — | 1.03 |
| Dec 31, 2014 | 4.80 | 0.78 | 9.60 | 1.48 | — | 1.14 |
| Dec 31, 2013 | 4.58 | 0.74 | 11.88 | 1.42 | — | 1.21 |
| Dec 31, 2012 | 4.22 | 1.20 | 10.71 | 1.34 | — | 1.07 |
| Dec 31, 2011 | 5.92 | 0.65 | — | 1.49 | — | 1.14 |
| Dec 31, 2010 | 4.16 | 1.08 | — | 1.65 | — | 1.11 |
| Dec 31, 2009 | 10.62 | 0.44 | — | 1.82 | — | 1.33 |
| Dec 31, 2008 | 8.77 | 0.42 | — | 1.67 | — | 1.01 |
| Dec 31, 2007 | 8.49 | 0.46 | — | 1.96 | — | 0.99 |
| Dec 31, 2006 | 10.00 | 0.70 | — | 2.21 | — | 0.94 |
| Dec 31, 2005 | 12.08 | 0.41 | — | 1.77 | — | 0.96 |
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)
Alphabet Inc., current ratio, long-term trends, comparison to sector (media & entertainment)
| Alphabet Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2024 | 1.84 | 1.59 |
| Dec 31, 2023 | 2.10 | 1.67 |
| Dec 31, 2022 | 2.38 | 1.77 |
| Dec 31, 2021 | 2.93 | 2.08 |
| Dec 31, 2020 | 3.07 | 2.37 |
| Dec 31, 2019 | 3.37 | 2.16 |
| Dec 31, 2018 | 3.92 | 2.50 |
| Dec 31, 2017 | 5.14 | 2.84 |
| Dec 31, 2016 | 6.29 | 2.85 |
| Dec 31, 2015 | 4.67 | 2.47 |
| Dec 31, 2014 | 4.80 | 2.46 |
| Dec 31, 2013 | 4.58 | 2.35 |
| Dec 31, 2012 | 4.22 | 2.31 |
| Dec 31, 2011 | 5.92 | 2.17 |
| Dec 31, 2010 | 4.16 | 2.14 |
| Dec 31, 2009 | 10.62 | 2.33 |
| Dec 31, 2008 | 8.77 | 1.56 |
| Dec 31, 2007 | 8.49 | 1.51 |
| Dec 31, 2006 | 10.00 | 1.47 |
| Dec 31, 2005 | 12.08 | 1.27 |
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 Industry (Communication Services)
Alphabet Inc., current ratio, long-term trends, comparison to industry (communication services)
| Alphabet Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2024 | 1.84 | 1.24 |
| Dec 31, 2023 | 2.10 | 1.31 |
| Dec 31, 2022 | 2.38 | 1.29 |
| Dec 31, 2021 | 2.93 | 1.42 |
| Dec 31, 2020 | 3.07 | 1.74 |
| Dec 31, 2019 | 3.37 | 1.49 |
| Dec 31, 2018 | 3.92 | 1.59 |
| Dec 31, 2017 | 5.14 | 1.65 |
| Dec 31, 2016 | 6.29 | 1.69 |
| Dec 31, 2015 | 4.67 | 1.45 |
| Dec 31, 2014 | 4.80 | 1.61 |
| Dec 31, 2013 | 4.58 | 1.90 |
| Dec 31, 2012 | 4.22 | 1.44 |
| Dec 31, 2011 | 5.92 | 1.35 |
| Dec 31, 2010 | 4.16 | 1.12 |
| Dec 31, 2009 | 10.62 | 1.08 |
| Dec 31, 2008 | 8.77 | 0.93 |
| Dec 31, 2007 | 8.49 | 0.89 |
| Dec 31, 2006 | 10.00 | 0.83 |
| Dec 31, 2005 | 12.08 | 0.78 |
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).