.Liquidity Analysis
Difficulty: Beginner
Liquidity ratios measure the company's ability to meet its short-term obligations.
Ratios (Summary)
Alphabet Inc., liquidity ratios
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| | Current ratio | |||||
| | Quick ratio | |||||
| | Cash ratio |
Source: Based on data from Alphabet Inc. Annual Reports
| Ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Alphabet Inc.'s current ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Alphabet Inc.'s quick ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Alphabet Inc.'s cash ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
Current Ratio
Alphabet Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Current assets | |||||
| | Current liabilities | |||||
| Ratio | ||||||
| | Current ratio1 | |||||
| Benchmarks | ||||||
| Current Ratio, Competitors | ||||||
| Adobe Systems Inc. | ||||||
| Facebook Inc. | ||||||
| International Business Machines Corp. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| salesforce.com inc. | ||||||
| Current Ratio, Sector | ||||||
| Software & Computer Services | ||||||
| Current Ratio, Industry | ||||||
| Technology | ||||||
Source: Based on data from Alphabet Inc. Annual Reports
2017 Calculations
1 Current ratio = Current assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Alphabet Inc.'s current ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
Quick Ratio
Alphabet Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Cash, cash equivalents, and marketable securities | |||||
| | Accounts receivable, net of allowance | |||||
| | Total quick assets | |||||
| | Current liabilities | |||||
| Ratio | ||||||
| | Quick ratio1 | |||||
| Benchmarks | ||||||
| Quick Ratio, Competitors | ||||||
| Adobe Systems Inc. | ||||||
| Facebook Inc. | ||||||
| International Business Machines Corp. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| salesforce.com inc. | ||||||
| Quick Ratio, Sector | ||||||
| Software & Computer Services | ||||||
| Quick Ratio, Industry | ||||||
| Technology | ||||||
Source: Based on data from Alphabet Inc. Annual Reports
2017 Calculations
1 Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Alphabet Inc.'s quick ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
Cash Ratio
Alphabet Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2017 | Dec 31, 2016 | Dec 31, 2015 | Dec 31, 2014 | Dec 31, 2013 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
| | Cash, cash equivalents, and marketable securities | |||||
| | Total cash assets | |||||
| | Current liabilities | |||||
| Ratio | ||||||
| | Cash ratio1 | |||||
| Benchmarks | ||||||
| Cash Ratio, Competitors | ||||||
| Adobe Systems Inc. | ||||||
| Facebook Inc. | ||||||
| International Business Machines Corp. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| salesforce.com inc. | ||||||
| Cash Ratio, Sector | ||||||
| Software & Computer Services | ||||||
| Cash Ratio, Industry | ||||||
| Technology | ||||||
Source: Based on data from Alphabet Inc. Annual Reports
2017 Calculations
1 Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Alphabet Inc.'s cash ratio improved from 2015 to 2016 but then slightly deteriorated from 2016 to 2017 not reaching 2015 level. |
