Analysis of Liquidity Ratios
Liquidity ratios measure the company’s ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Alphabet Inc., liquidity ratios
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Current ratio | 3.07 | 3.37 | 3.92 | 5.14 | 6.29 | |
| Quick ratio | 2.95 | 3.21 | 3.75 | 4.97 | 6.00 | |
| Cash ratio | 2.41 | 2.65 | 3.15 | 4.21 | 5.15 |
Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Alphabet Inc.’s current ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Alphabet Inc.’s quick ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Alphabet Inc.’s cash ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Current Ratio
Alphabet Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 174,296 | 152,578 | 135,676 | 124,308 | 105,408 | |
| Current liabilities | 56,834 | 45,221 | 34,620 | 24,183 | 16,756 | |
| Liquidity Ratio | ||||||
| Current ratio1 | 3.07 | 3.37 | 3.92 | 5.14 | 6.29 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Adobe Inc. | 1.48 | 0.79 | 1.13 | 2.05 | 2.08 | |
| Autodesk Inc. | 0.83 | 0.70 | 0.88 | 1.13 | 1.88 | |
| Facebook Inc. | 5.05 | 4.40 | 7.19 | 12.92 | 11.97 | |
| International Business Machines Corp. | — | 1.02 | 1.29 | 1.33 | 1.21 | |
| Intuit Inc. | 2.26 | 1.83 | 1.14 | 0.73 | 0.72 | |
| Microsoft Corp. | 2.52 | 2.53 | 2.90 | 2.48 | 2.35 | |
| Oracle Corp. | 3.03 | 2.49 | 3.96 | 3.08 | 3.74 | |
| salesforce.com inc. | 1.08 | 0.95 | 0.92 | 0.83 | 0.77 | |
| ServiceNow Inc. | 1.21 | 1.03 | 1.17 | 1.15 | 1.25 | |
| Current Ratio, Sector | ||||||
| Software & Computer Services | — | 2.37 | 2.81 | 2.79 | 2.77 | |
| Current Ratio, Industry | ||||||
| Technology | — | 2.04 | 2.17 | 2.39 | 2.36 | |
Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).
1 2020 Calculation
Current ratio = Current assets ÷ Current liabilities
= 174,296 ÷ 56,834 = 3.07
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Alphabet Inc.’s current ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Quick Ratio
Alphabet Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash, cash equivalents, and marketable securities | 136,694 | 119,675 | 109,140 | 101,871 | 86,333 | |
| Accounts receivable, net | 30,930 | 25,326 | 20,838 | 18,336 | 14,137 | |
| Total quick assets | 167,624 | 145,001 | 129,978 | 120,207 | 100,470 | |
| Current liabilities | 56,834 | 45,221 | 34,620 | 24,183 | 16,756 | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 2.95 | 3.21 | 3.75 | 4.97 | 6.00 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Adobe Inc. | 1.34 | 0.70 | 1.06 | 2.00 | 1.99 | |
| Autodesk Inc. | 0.78 | 0.62 | 0.83 | 1.08 | 1.83 | |
| Facebook Inc. | 4.89 | 4.28 | 6.94 | 12.64 | 11.63 | |
| International Business Machines Corp. | — | 0.87 | 1.12 | 1.19 | 1.04 | |
| Intuit Inc. | 2.04 | 1.44 | 0.86 | 0.45 | 0.53 | |
| Microsoft Corp. | 2.33 | 2.35 | 2.74 | 2.37 | 2.22 | |
| Oracle Corp. | 2.83 | 2.31 | 3.78 | 2.95 | 3.57 | |
| salesforce.com inc. | 0.95 | 0.82 | 0.83 | 0.74 | 0.68 | |
| ServiceNow Inc. | 1.10 | 0.92 | 1.03 | 1.05 | 1.14 | |
| Quick Ratio, Sector | ||||||
| Software & Computer Services | — | 2.21 | 2.65 | 2.66 | 2.60 | |
| Quick Ratio, Industry | ||||||
| Technology | — | 1.83 | 1.96 | 2.18 | 2.14 | |
Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).
1 2020 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 167,624 ÷ 56,834 = 2.95
2 Click competitor name to see calculations.
| Liquidity 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 deteriorated from 2018 to 2019 and from 2019 to 2020. |
Cash Ratio
Alphabet Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | Dec 31, 2016 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash, cash equivalents, and marketable securities | 136,694 | 119,675 | 109,140 | 101,871 | 86,333 | |
| Total cash assets | 136,694 | 119,675 | 109,140 | 101,871 | 86,333 | |
| Current liabilities | 56,834 | 45,221 | 34,620 | 24,183 | 16,756 | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 2.41 | 2.65 | 3.15 | 4.21 | 5.15 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Adobe Inc. | 1.09 | 0.51 | 0.75 | 1.65 | 1.69 | |
| Autodesk Inc. | 0.57 | 0.41 | 0.62 | 0.87 | 1.41 | |
| Facebook Inc. | 4.14 | 3.64 | 5.86 | 11.09 | 10.24 | |
| International Business Machines Corp. | — | 0.24 | 0.32 | 0.34 | 0.24 | |
| Intuit Inc. | 2.00 | 1.39 | 0.81 | 0.40 | 0.48 | |
| Microsoft Corp. | 1.89 | 1.93 | 2.29 | 2.06 | 1.91 | |
| Oracle Corp. | 2.50 | 2.03 | 3.50 | 2.73 | 3.26 | |
| salesforce.com inc. | 0.54 | 0.39 | 0.45 | 0.30 | 0.24 | |
| ServiceNow Inc. | 0.83 | 0.61 | 0.74 | 0.85 | 0.84 | |
| Cash Ratio, Sector | ||||||
| Software & Computer Services | — | 1.74 | 2.11 | 2.15 | 2.08 | |
| Cash Ratio, Industry | ||||||
| Technology | — | 1.38 | 1.47 | 1.74 | 1.69 | |
Based on: 10-K (filing date: 2021-02-03), 10-K (filing date: 2020-02-04), 10-K (filing date: 2019-02-05), 10-K (filing date: 2018-02-06), 10-K (filing date: 2017-02-03).
1 2020 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 136,694 ÷ 56,834 = 2.41
2 Click competitor name to see calculations.
| Liquidity 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 deteriorated from 2018 to 2019 and from 2019 to 2020. |