Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Alphabet Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
An analysis of liquidity metrics between March 2022 and September 2026 reveals a distinct cycle of contraction followed by a sharp recovery. For the majority of the observed period, there was a consistent downward trajectory in the ability to cover short-term liabilities with liquid assets, reaching a nadir in the third quarter of 2025 before returning to levels near the 2022 baseline.
- Current Ratio
- The current ratio exhibited a steady decline from a peak of 2.87 in March 2022 to a low of 1.75 by September 2025. This downward trend suggests a gradual reduction in the margin of safety regarding current liabilities. However, a significant reversal occurred in mid-2026, with the ratio climbing sharply to 2.79 by September 2026, effectively restoring the liquidity position.
- Quick Ratio
- The quick ratio closely mirrored the movement of the current ratio, decreasing from 2.72 in March 2022 to 1.56 in September 2025. The minimal variance between the current and quick ratios indicates that inventory levels have a negligible impact on the overall liquidity profile. Similar to the current ratio, a strong recovery was observed in 2026, ending the period at 2.51.
- Cash Ratio
- The cash ratio showed the most pronounced contraction, starting at 2.16 in March 2022 and falling to 0.99 in September 2025. This marks the only instance where a liquidity metric dropped below the 1.0 threshold, indicating a period where cash and cash equivalents alone were insufficient to cover all current liabilities. A robust rebound followed, with the ratio increasing to 1.97 by September 2026.
The high degree of correlation between the three ratios suggests that the fluctuations were primarily driven by changes in the cash position rather than shifts in accounts receivable or other current assets. Despite the contraction observed through 2025, a healthy liquidity posture was maintained for nearly the entire period, concluding with a strong surge in liquidity in the final two quarters of the analysis.
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Current Ratio
Alphabet Inc., current ratio calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current assets | 374,665) | 343,524) | 213,753) | 206,038) | 173,947) | 166,216) | 162,052) | 163,711) | 157,541) | 161,995) | 165,471) | 171,530) | 176,310) | 168,788) | 161,985) | 164,795) | 166,109) | 172,371) | 177,853) | ||||||
| Current liabilities | 134,501) | 126,111) | 111,188) | 102,745) | 99,550) | 87,310) | 91,654) | 89,122) | 80,803) | 77,913) | 76,997) | 81,814) | 86,295) | 77,709) | 68,854) | 69,300) | 65,979) | 61,354) | 61,948) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Current ratio1 | 2.79 | 2.72 | 1.92 | 2.01 | 1.75 | 1.90 | 1.77 | 1.84 | 1.95 | 2.08 | 2.15 | 2.10 | 2.04 | 2.17 | 2.35 | 2.38 | 2.52 | 2.81 | 2.87 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | 0.82 | 0.80 | 0.87 | 0.88 | 0.88 | 0.91 | 0.65 | 0.68 | 0.72 | 0.66 | 0.59 | 0.60 | 0.70 | 0.76 | 0.69 | 0.78 | 0.84 | 0.88 | 0.86 | ||||||
| Meta Platforms Inc. | 1.90 | 2.23 | 2.35 | 2.60 | 1.98 | 1.97 | 2.66 | 2.98 | 2.73 | 2.83 | 2.68 | 2.67 | 2.57 | 2.32 | 2.07 | 2.20 | 2.57 | 2.52 | 2.81 | ||||||
| Netflix Inc. | 1.07 | 1.14 | 1.41 | 1.19 | 1.33 | 1.34 | 1.20 | 1.22 | 1.13 | 0.95 | 1.07 | 1.12 | 1.29 | 1.33 | 1.26 | 1.17 | 1.14 | 1.05 | 1.05 | ||||||
| Walt Disney Co. | 0.71 | 0.68 | 0.67 | 0.71 | 0.72 | 0.67 | 0.68 | 0.73 | 0.72 | 0.75 | 0.84 | 1.05 | 1.07 | 1.01 | 0.99 | 1.00 | 1.02 | 1.06 | 1.10 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 374,665 ÷ 134,501 = 2.79
2 Click competitor name to see calculations.
The analysis of liquidity trends reveals a distinct three-phase movement in the short-term financial position between March 2022 and September 2026. A period of gradual contraction is observed, followed by a brief stabilization, and concluding with a significant expansion of the liquidity cushion.
- Current Ratio Trajectory
- A sustained downward trend in the current ratio is evident from March 2022, when it stood at 2.87, reaching a minimum of 1.75 by September 2025. This decline indicates a narrowing margin between short-term assets and obligations over a three-and-a-half-year period. However, a sharp reversal occurs in 2026, with the ratio ascending to 2.79 by September 2026, effectively returning the liquidity profile to its initial 2022 levels.
- Current Asset Volatility
- Current assets remained relatively stable, fluctuating between $157 billion and $178 billion from March 2022 through March 2025. A significant inflection point is observed starting in December 2025, where assets increased to $206 billion. This growth accelerated aggressively throughout 2026, peaking at $374.6 billion by September 2026, representing a substantial increase in available liquid resources.
- Current Liability Expansion
- Current liabilities exhibited a consistent and nearly linear upward trajectory throughout the analyzed period. Obligations rose from $61.9 billion in March 2022 to $134.5 billion by September 2026. The steady growth of these liabilities was the primary driver for the compression of the current ratio between 2022 and 2025, as the increase in obligations outpaced the growth of assets during that interval.
- Overall Liquidity Position
- Despite the period of decline, the current ratio remained comfortably above 1.0 at all times, ensuring that short-term obligations were consistently covered by current assets. The dramatic surge in assets during the final quarters of the period has resulted in a fortified liquidity position, significantly exceeding the levels maintained during the preceding four years.
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Quick Ratio
Alphabet Inc., quick ratio calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cash, cash equivalents, and marketable securities | 265,098) | 242,474) | 126,840) | 126,843) | 98,496) | 95,148) | 95,328) | 95,657) | 93,230) | 100,725) | 108,090) | 110,916) | 119,935) | 118,332) | 115,102) | 113,762) | 116,259) | 124,997) | 133,970) | ||||||
| Accounts receivable, net | 72,784) | 69,175) | 62,999) | 62,886) | 57,148) | 55,048) | 51,000) | 52,340) | 49,104) | 47,087) | 44,552) | 47,964) | 41,020) | 38,804) | 36,036) | 40,258) | 34,697) | 35,707) | 34,703) | ||||||
| Total quick assets | 337,882) | 311,649) | 189,839) | 189,729) | 155,644) | 150,196) | 146,328) | 147,997) | 142,334) | 147,812) | 152,642) | 158,880) | 160,955) | 157,136) | 151,138) | 154,020) | 150,956) | 160,704) | 168,673) | ||||||
| Current liabilities | 134,501) | 126,111) | 111,188) | 102,745) | 99,550) | 87,310) | 91,654) | 89,122) | 80,803) | 77,913) | 76,997) | 81,814) | 86,295) | 77,709) | 68,854) | 69,300) | 65,979) | 61,354) | 61,948) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Quick ratio1 | 2.51 | 2.47 | 1.71 | 1.85 | 1.56 | 1.72 | 1.60 | 1.66 | 1.76 | 1.90 | 1.98 | 1.94 | 1.87 | 2.02 | 2.20 | 2.22 | 2.29 | 2.62 | 2.72 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | 0.69 | 0.65 | 0.71 | 0.70 | 0.69 | 0.71 | 0.51 | 0.53 | 0.60 | 0.54 | 0.49 | 0.50 | 0.56 | 0.61 | 0.55 | 0.62 | 0.63 | 0.68 | 0.71 | ||||||
| Meta Platforms Inc. | 1.67 | 1.99 | 2.11 | 2.42 | 1.67 | 1.71 | 2.50 | 2.82 | 2.57 | 2.69 | 2.55 | 2.55 | 2.43 | 2.20 | 1.91 | 2.01 | 2.34 | 2.34 | 2.62 | ||||||
| Netflix Inc. | 0.67 | 0.75 | 1.01 | 0.83 | 0.96 | 0.94 | 0.86 | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | ||||||
| Walt Disney Co. | 0.56 | 0.55 | 0.54 | 0.55 | 0.57 | 0.54 | 0.55 | 0.54 | 0.53 | 0.57 | 0.69 | 0.85 | 0.87 | 0.83 | 0.83 | 0.83 | 0.87 | 0.91 | 0.98 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 337,882 ÷ 134,501 = 2.51
2 Click competitor name to see calculations.
The quick ratio exhibited a sustained downward trend from March 2022 through September 2025, followed by a sharp recovery during 2026. The ratio declined from a peak of 2.72 in the first quarter of 2022 to a low of 1.56 by the third quarter of 2025, before rebounding to 2.51 by September 2026.
- Analysis of Quick Assets
- Quick assets remained relatively stable with a slight downward bias between March 2022 and September 2024, fluctuating between 168.67 billion and 142.33 billion. A significant inflection point occurred in December 2025, where assets rose to 189.73 billion, followed by an accelerated increase to 337.88 billion by September 2026.
- Current Liabilities Trajectory
- Current liabilities demonstrated a consistent and nearly linear increase throughout the period. Starting at 61.95 billion in March 2022, obligations grew to 134.50 billion by September 2026, representing more than a twofold increase in short-term liabilities.
- Liquidity Ratio Drivers
- The contraction of the quick ratio from 2022 to 2025 was driven by the simultaneous occurrence of stagnant or declining quick assets and steadily increasing current liabilities. The subsequent surge in the ratio during 2026 is directly attributable to the rapid expansion of quick assets, which grew at a rate that far exceeded the increase in liabilities, thereby restoring the organization's immediate liquidity position.
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Cash Ratio
Alphabet Inc., cash ratio calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cash, cash equivalents, and marketable securities | 265,098) | 242,474) | 126,840) | 126,843) | 98,496) | 95,148) | 95,328) | 95,657) | 93,230) | 100,725) | 108,090) | 110,916) | 119,935) | 118,332) | 115,102) | 113,762) | 116,259) | 124,997) | 133,970) | ||||||
| Total cash assets | 265,098) | 242,474) | 126,840) | 126,843) | 98,496) | 95,148) | 95,328) | 95,657) | 93,230) | 100,725) | 108,090) | 110,916) | 119,935) | 118,332) | 115,102) | 113,762) | 116,259) | 124,997) | 133,970) | ||||||
| Current liabilities | 134,501) | 126,111) | 111,188) | 102,745) | 99,550) | 87,310) | 91,654) | 89,122) | 80,803) | 77,913) | 76,997) | 81,814) | 86,295) | 77,709) | 68,854) | 69,300) | 65,979) | 61,354) | 61,948) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Cash ratio1 | 1.97 | 1.92 | 1.14 | 1.23 | 0.99 | 1.09 | 1.04 | 1.07 | 1.15 | 1.29 | 1.40 | 1.36 | 1.39 | 1.52 | 1.67 | 1.64 | 1.76 | 2.04 | 2.16 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | 0.25 | 0.23 | 0.28 | 0.28 | 0.29 | 0.30 | 0.20 | 0.18 | 0.23 | 0.17 | 0.16 | 0.15 | 0.19 | 0.22 | 0.17 | 0.17 | 0.20 | 0.25 | 0.30 | ||||||
| Meta Platforms Inc. | 1.31 | 1.60 | 1.74 | 1.95 | 1.20 | 1.26 | 2.07 | 2.32 | 2.13 | 2.15 | 2.07 | 2.05 | 2.00 | 1.79 | 1.48 | 1.51 | 1.84 | 1.82 | 2.08 | ||||||
| Netflix Inc. | 0.67 | 0.75 | 1.01 | 0.83 | 0.96 | 0.94 | 0.86 | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | ||||||
| Walt Disney Co. | 0.15 | 0.16 | 0.15 | 0.17 | 0.16 | 0.17 | 0.16 | 0.17 | 0.17 | 0.20 | 0.23 | 0.46 | 0.41 | 0.37 | 0.31 | 0.40 | 0.42 | 0.45 | 0.48 | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 265,098 ÷ 134,501 = 1.97
2 Click competitor name to see calculations.
The analyzed period is characterized by a prolonged contraction in the cash ratio, followed by a substantial recovery in the final quarters. A consistent decline in liquidity is observed from March 2022 through September 2025, after which a sharp reversal occurs, returning the ratio to near-initial levels by September 2026.
- Total Cash Assets Trend
- Cash assets exhibited a general downward trajectory for the first four years, decreasing from 133,970 million USD in March 2022 to a low of 93,230 million USD in September 2024. A period of relative stability followed until September 2025. Subsequently, a significant surge in cash reserves is noted, with assets increasing rapidly to 265,098 million USD by September 2026, representing a substantial increase in absolute liquidity.
- Current Liabilities Growth
- Current liabilities demonstrated a steady and nearly continuous upward trend throughout the entire period. Obligations rose from 61,948 million USD in March 2022 to 134,501 million USD by September 2026. This persistent increase in short-term obligations acted as a primary driver for the compression of the cash ratio during the first half of the analyzed timeframe.
- Cash Ratio Performance
- The cash ratio began at a high of 2.16 in March 2022, indicating a strong ability to cover short-term liabilities with cash. This ratio declined steadily over several years, reaching a critical floor of 0.99 in September 2025, where cash assets were momentarily insufficient to cover total current liabilities. However, a sharp recovery is observed starting in December 2025, with the ratio climbing to 1.97 by September 2026, mirroring the rapid expansion of cash assets during that interval.
The divergence between the steady growth of liabilities and the volatile movement of cash assets defines the overall liquidity profile. While the period from 2022 to 2025 showed a tightening of the cash position, the dramatic increase in cash reserves in 2026 effectively restored the liquidity buffer to a robust level.
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