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-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).
Over the observed period, the liquidity ratios exhibited consistent, albeit moderate, declines followed by some stabilization and eventual improvement. A general weakening in liquidity positions is apparent from early 2022 through late 2023, with a slight recovery observed in the most recent quarters. The magnitude of change varies across the ratios, with the cash ratio demonstrating the most pronounced decrease and subsequent rebound.
- Current Ratio
- The current ratio decreased steadily from 2.87 in March 2022 to a low of 1.84 in December 2023. This indicates a diminishing ability to cover short-term liabilities with short-term assets. However, the ratio showed signs of stabilization and improvement in subsequent quarters, reaching 2.01 by December 2025. The overall trend suggests a moderate reduction in short-term liquidity, followed by a partial recovery.
- Quick Ratio
- The quick ratio followed a similar pattern to the current ratio, declining from 2.72 in March 2022 to 1.66 in December 2023. This suggests a weakening in the ability to meet short-term obligations with the most liquid assets, excluding inventory. Like the current ratio, the quick ratio experienced a recovery, increasing to 1.85 by December 2025. The decline and subsequent increase were less dramatic than those observed in the current ratio, indicating a relatively stable component of liquid assets.
- Cash Ratio
- The cash ratio experienced the most significant decline, decreasing from 2.16 in March 2022 to a low of 0.99 in September 2025. This indicates a substantial reduction in the proportion of current assets held as cash. However, the ratio demonstrated a notable recovery in the final quarter, rising to 1.23 by December 2025. This suggests a strategic shift in cash management or a recent influx of cash. The volatility of this ratio is higher than the other two, indicating a more dynamic approach to cash holdings.
In summary, the observed liquidity ratios suggest a period of decreasing short-term liquidity, peaking in late 2023, followed by a period of stabilization and modest recovery. The cash ratio exhibited the most significant fluctuations, while the current and quick ratios demonstrated more gradual trends. The recent improvements in all three ratios suggest a strengthening of the short-term financial position.
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Current Ratio
Alphabet Inc., current ratio calculation (quarterly data)
| 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 | 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 | 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 | 2.01 | 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. | 0.88 | 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. | 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. | 1.19 | 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 | |||||
| Trade Desk Inc. | 1.61 | 1.71 | 1.71 | 1.81 | 1.86 | 1.85 | 1.80 | 1.79 | 1.72 | 1.87 | 1.87 | 1.90 | 1.90 | 1.91 | 1.92 | 1.91 | |||||
| Walt Disney Co. | 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-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 Q4 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 206,038 ÷ 102,745 = 2.01
2 Click competitor name to see calculations.
The current ratio exhibited a general declining trend over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially strong, the ratio decreased consistently before showing a slight recovery towards the end of the period.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The current ratio began at 2.87 and decreased to 2.38. This indicates a gradual reduction in the company’s ability to cover its short-term liabilities with its short-term assets during this timeframe. While remaining above 2.0, the decline suggests a potential tightening of liquidity.
- Continued Decline (Mar 31, 2023 – Sep 30, 2024)
- The downward trend continued through September 2024, with the ratio falling to a low of 1.95. This period saw the most significant decrease, potentially signaling increasing pressure on short-term liquidity. The ratio consistently decreased quarter over quarter, indicating a sustained erosion of the buffer between current assets and current liabilities.
- Recent Fluctuations (Dec 31, 2024 – Dec 31, 2025)
- From December 2024, the current ratio showed some volatility. It increased slightly to 2.01 by December 31, 2025, after reaching a low of 1.75 in September 2025. This recent increase suggests a potential stabilization or improvement in the short-term liquidity position, although it remains lower than the levels observed at the beginning of the analyzed period.
- Overall Trend
- The overall trend demonstrates a weakening of the company’s short-term liquidity position over the majority of the period. While a slight recovery is observed in the most recent quarters, the ratio remains considerably lower than its initial value. This suggests a shift in the company’s working capital management or changes in the composition of its current assets and liabilities.
The fluctuations in both current assets and current liabilities contribute to the observed changes in the current ratio. Further investigation into the specific components of these items would be necessary to fully understand the drivers behind these trends.
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Quick Ratio
Alphabet Inc., quick ratio calculation (quarterly data)
| 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 | 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 | 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 | 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 | 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 | 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. | 0.70 | 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. | 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. | 0.83 | 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 | |||||
| Trade Desk Inc. | 1.55 | 1.64 | 1.68 | 1.79 | 1.83 | 1.81 | 1.75 | 1.77 | 1.69 | 1.84 | 1.84 | 1.87 | 1.87 | 1.88 | 1.87 | 1.85 | |||||
| Walt Disney Co. | 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-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 Q4 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 189,729 ÷ 102,745 = 1.85
2 Click competitor name to see calculations.
The quick ratio for the analyzed period demonstrates a general declining trend, albeit with some fluctuations. Initially strong, the ratio exhibits increasing pressure on short-term liquidity as the period progresses. A review of the underlying components reveals the drivers behind these movements.
- Overall Trend
- The quick ratio began at 2.72 and generally decreased to 1.56 before a slight recovery to 1.85. This indicates a weakening ability to meet short-term obligations with highly liquid assets. The most significant decline occurred between June 30, 2023, and September 30, 2025.
- Total Quick Assets
- Total quick assets experienced a decrease from US$168,673 million to US$155,644 million over the first eleven quarters, before increasing significantly to US$189,729 million in the final quarter. This suggests a period of asset reduction followed by a substantial increase in liquid assets. The initial decrease may be attributed to strategic asset allocation or operational needs, while the final increase warrants further investigation.
- Current Liabilities
- Current liabilities consistently increased throughout the analyzed period, rising from US$61,948 million to US$102,745 million. This upward trajectory in short-term obligations contributes significantly to the observed decline in the quick ratio, as the denominator increased at a faster rate than the numerator for a significant portion of the period.
- Ratio Fluctuations
- While the overall trend is downward, there are periods of relative stability and even slight improvement. For example, the ratio increased from 1.94 to 1.98 between December 31, 2022, and March 31, 2023. These fluctuations likely reflect temporary changes in working capital management or seasonal variations in business activity. The final quarter shows a notable improvement, potentially indicating a proactive effort to bolster short-term liquidity.
In conclusion, the quick ratio indicates a gradual erosion of short-term liquidity, primarily driven by increasing current liabilities. The recent increase in quick assets offers a potential positive shift, but continued monitoring is recommended to assess the sustainability of this improvement and its impact on the company’s overall financial health.
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Cash Ratio
Alphabet Inc., cash ratio calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Cash, cash equivalents, and marketable securities | 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 | 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 | 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 | 1.23 | 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. | 0.28 | 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. | 1.95 | 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. | 0.83 | 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 | |||||
| Trade Desk Inc. | 0.40 | 0.48 | 0.57 | 0.65 | 0.67 | 0.66 | 0.60 | 0.62 | 0.55 | 0.71 | 0.70 | 0.73 | 0.71 | 0.74 | 0.73 | 0.71 | |||||
| Walt Disney Co. | 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-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 Q4 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 126,843 ÷ 102,745 = 1.23
2 Click competitor name to see calculations.
The cash ratio exhibited a general declining trend over the observed period, spanning from March 31, 2022, to December 31, 2025. Initially strong, the ratio decreased consistently before showing a slight recovery in the most recent quarter. This indicates a shifting dynamic in the company’s most liquid asset coverage of its immediate obligations.
- Overall Trend
- From a high of 2.16 in March 2022, the cash ratio decreased to a low of 0.99 in September 2025. This represents a substantial reduction in the company’s ability to cover its current liabilities with only cash and cash equivalents. A subsequent increase to 1.23 in December 2025 suggests a partial restoration of this coverage.
- Initial Decline (March 2022 – December 2022)
- The cash ratio experienced a steady decline from 2.16 to 1.64 during this period. While remaining above 1.6, the decrease suggests a potential utilization of cash assets or a relative increase in current liabilities. The rate of decline accelerated slightly in the latter half of the year.
- Continued Reduction (March 2023 – September 2023)
- The downward trend continued, with the ratio falling from 1.67 to 1.39. This period saw a more pronounced increase in current liabilities, as evidenced by the widening gap between total cash assets and current liabilities. The ratio’s decline suggests a growing reliance on other forms of current assets to meet short-term obligations.
- Lowest Point and Recovery (December 2023 – December 2025)
- The ratio continued to decrease, reaching its lowest point of 0.99 in September 2025. This indicates that the company held less than one dollar of cash for every dollar of current liabilities. However, a notable increase to 1.23 in December 2025 suggests a recent improvement in liquidity, potentially due to increased cash holdings or a reduction in immediate liabilities.
- Cash Asset and Liability Dynamics
- Total cash assets generally decreased over the period, although fluctuations were observed. Current liabilities, conversely, generally increased, particularly between June 2023 and September 2023, contributing significantly to the declining cash ratio. The recent increase in the cash ratio in December 2025 is correlated with a substantial increase in total cash assets.
In conclusion, the cash ratio demonstrates a period of weakening short-term liquidity followed by a recent, partial recovery. The company’s ability to meet its current obligations solely with cash diminished considerably before improving in the final quarter analyzed.
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