Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Alphabet Inc., liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Current ratio | 2.10 | 2.38 | 2.93 | 3.07 | 3.37 | |
| Quick ratio | 1.94 | 2.22 | 2.79 | 2.95 | 3.21 | |
| Cash ratio | 1.36 | 1.64 | 2.17 | 2.41 | 2.65 |
Based on: 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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Alphabet Inc. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Alphabet Inc. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Alphabet Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
Alphabet Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | 171,530) | 164,795) | 188,143) | 174,296) | 152,578) | |
| Current liabilities | 81,814) | 69,300) | 64,254) | 56,834) | 45,221) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 2.10 | 2.38 | 2.93 | 3.07 | 3.37 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Comcast Corp. | 0.60 | 0.78 | 0.85 | 0.93 | 0.84 | |
| Meta Platforms Inc. | 2.67 | 2.20 | 3.15 | 5.05 | 4.40 | |
| Netflix Inc. | 1.12 | 1.17 | 0.95 | 1.25 | 0.90 | |
| Walt Disney Co. | 1.05 | 1.00 | 1.08 | 1.32 | 0.90 | |
| Current Ratio, Sector | ||||||
| Media & Entertainment | 1.67 | 1.76 | 2.08 | 2.38 | 2.16 | |
| Current Ratio, Industry | ||||||
| Communication Services | 1.30 | 1.28 | 1.41 | 1.74 | 1.49 | |
Based on: 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).
1 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 171,530 ÷ 81,814 = 2.10
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. current ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Quick Ratio
Alphabet Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash, cash equivalents, and marketable securities | 110,916) | 113,762) | 139,649) | 136,694) | 119,675) | |
| Accounts receivable, net | 47,964) | 40,258) | 39,304) | 30,930) | 25,326) | |
| Total quick assets | 158,880) | 154,020) | 178,953) | 167,624) | 145,001) | |
| Current liabilities | 81,814) | 69,300) | 64,254) | 56,834) | 45,221) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.94 | 2.22 | 2.79 | 2.95 | 3.21 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Comcast Corp. | 0.50 | 0.62 | 0.71 | 0.81 | 0.55 | |
| Meta Platforms Inc. | 2.55 | 2.01 | 2.94 | 4.89 | 4.28 | |
| Netflix Inc. | 1.07 | 1.12 | 0.91 | 1.22 | 0.87 | |
| Walt Disney Co. | 0.85 | 0.83 | 0.94 | 1.15 | 0.67 | |
| Quick Ratio, Sector | ||||||
| Media & Entertainment | 1.53 | 1.61 | 1.94 | 2.25 | 1.97 | |
| Quick Ratio, Industry | ||||||
| Communication Services | 1.11 | 1.08 | 1.22 | 1.53 | 1.26 | |
Based on: 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).
1 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 158,880 ÷ 81,814 = 1.94
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. quick ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Cash Ratio
Alphabet Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash, cash equivalents, and marketable securities | 110,916) | 113,762) | 139,649) | 136,694) | 119,675) | |
| Total cash assets | 110,916) | 113,762) | 139,649) | 136,694) | 119,675) | |
| Current liabilities | 81,814) | 69,300) | 64,254) | 56,834) | 45,221) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 1.36 | 1.64 | 2.17 | 2.41 | 2.65 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Comcast Corp. | 0.15 | 0.17 | 0.30 | 0.41 | 0.18 | |
| Meta Platforms Inc. | 2.05 | 1.51 | 2.27 | 4.14 | 3.64 | |
| Netflix Inc. | 0.81 | 0.76 | 0.71 | 1.05 | 0.73 | |
| Walt Disney Co. | 0.46 | 0.40 | 0.51 | 0.67 | 0.17 | |
| Cash Ratio, Sector | ||||||
| Media & Entertainment | 1.05 | 1.10 | 1.42 | 1.75 | 1.48 | |
| Cash Ratio, Industry | ||||||
| Communication Services | 0.68 | 0.64 | 0.80 | 1.07 | 0.81 | |
Based on: 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).
1 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 110,916 ÷ 81,814 = 1.36
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. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |