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: 2026-06-30), 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).
A sustained downward trajectory in liquidity metrics is observed from March 2022 through September 2025, followed by a sharp recovery in the first half of 2026. This trend indicates a prolonged period of tightening short-term liquidity that culminated in a significant strengthening of the balance sheet by mid-2026.
- Current Ratio
- The current ratio declined steadily from a peak of 2.87 in March 2022 to a minimum of 1.75 in September 2025. A substantial reversal is noted in the final periods, with the ratio climbing to 2.72 by June 2026, effectively returning to the levels observed at the start of the analyzed period.
- Quick Ratio
- The quick ratio mirrors the movement of the current ratio, decreasing from 2.72 in March 2022 to a low of 1.56 in September 2025. The subsequent rise to 2.47 by June 2026 suggests that the recovery in liquidity was not driven by inventory accumulation, as the quick ratio remains closely aligned with the current ratio.
- Cash Ratio
- The most pronounced contraction is seen in the cash ratio, which fell from 2.16 in March 2022 to 0.99 in September 2025. This represents the only instance across all metrics where the value dipped below the 1.0 threshold. However, a rapid recovery followed, with the ratio reaching 1.92 by June 2026.
The high degree of correlation between the three ratios suggests that liquidity fluctuations are primarily driven by changes in cash and cash equivalent balances rather than other current assets. While there was a multi-year period of compression, the capacity to meet short-term liabilities remained fundamentally intact throughout the cycle, ending in a robust liquidity position.
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Current Ratio
Alphabet Inc., current ratio calculation (quarterly data)
| 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 | 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 | 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 | 2.72 | 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. | 0.80 | 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. | 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. | 1.14 | 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. | 0.68 | 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: 2026-06-30), 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 Q2 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 343,524 ÷ 126,111 = 2.72
2 Click competitor name to see calculations.
The liquidity position of the entity experienced a prolonged period of compression between March 2022 and September 2025, followed by a sharp recovery in the first half of 2026.
- Current Ratio Trends
- A sustained downward trajectory in the current ratio was observed from a peak of 2.87 in March 2022 to a trough of 1.75 in September 2025. This contraction indicates a gradual reduction in the margin of safety for meeting short-term obligations. However, a significant reversal occurred by June 2026, with the ratio increasing to 2.72.
- Current Asset Analysis
- Current assets remained relatively stable or slightly volatile, fluctuating between 157.5 billion and 177.9 billion USD from March 2022 through March 2025. A notable expansion began in late 2025, culminating in a substantial increase to 343.5 billion USD by June 2026. This surge in assets served as the primary driver for the restoration of the liquidity ratio.
- Current Liability Analysis
- Current liabilities exhibited a consistent upward trend throughout the analyzed period. Obligations rose from 61.9 billion USD in March 2022 to 126.1 billion USD in June 2026. The steady growth of liabilities, while assets remained relatively stagnant between 2022 and 2024, explains the initial decline in the current ratio.
- Overall Liquidity Synthesis
- The period from 2022 to early 2025 was characterized by increasing short-term obligations without a proportional increase in liquid assets. This trend was abruptly corrected in 2026, where a massive expansion in current assets significantly outweighed the continued rise in current liabilities, returning the liquidity profile to levels comparable to the start of the analyzed period.
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Quick Ratio
Alphabet Inc., quick ratio calculation (quarterly data)
| 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 | 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 | 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 | 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 | 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 | 2.47 | 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. | 0.65 | 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. | 1.99 | 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. | 0.75 | 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. | 0.55 | 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: 2026-06-30), 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 Q2 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 311,649 ÷ 126,111 = 2.47
2 Click competitor name to see calculations.
The analysis of liquidity ratios between March 2022 and June 2026 reveals a period of prolonged contraction in immediate liquidity followed by a substantial recovery in the final quarters. The quick ratio demonstrates a consistent downward trajectory for the majority of the period before experiencing a sharp reversal in 2026.
- Quick Asset Dynamics
- Quick assets exhibited a gradual decline from US$ 168,673 million in March 2022, reaching a trough of US$ 142,334 million in September 2024. Following this low point, assets began to recover, with a notable acceleration starting in December 2025 (US$ 189,729 million) and culminating in a significant surge to US$ 311,649 million by June 2026.
- Current Liability Progression
- Current liabilities showed a sustained and steady upward trend throughout the entire analyzed period. Starting at US$ 61,948 million in March 2022, short-term obligations grew consistently, surpassing the US$ 100,000 million threshold in late 2025 and reaching a peak of US$ 126,111 million by June 2026, representing more than a doubling of liabilities over the timeframe.
- Quick Ratio Interpretation
- The quick ratio declined from 2.72 in March 2022 to a minimum of 1.56 in September 2025. This compression was the result of the dual impact of decreasing quick assets and increasing current liabilities. However, the ratio rebounded sharply in the final two quarters, ending at 2.47 in June 2026. This recovery is primarily attributed to the rapid expansion of quick assets, which outpaced the growth of liabilities in the final phase of the period.
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Cash Ratio
Alphabet Inc., cash ratio calculation (quarterly data)
| 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 | 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 | 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 | 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 | 1.92 | 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. | 0.23 | 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. | 1.60 | 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. | 0.75 | 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. | 0.16 | 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: 2026-06-30), 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 Q2 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 242,474 ÷ 126,111 = 1.92
2 Click competitor name to see calculations.
The analysis of liquidity metrics between March 2022 and June 2026 reveals a prolonged period of contraction in the cash ratio, followed by a sharp recovery in the final quarter of the observed period.
- Cash Ratio Trend Analysis
- A consistent downward trajectory is observed from March 2022, when the cash ratio was 2.16, declining to a low of 0.99 by September 2025. This trend indicates a reduction in the capacity to meet current liabilities using only cash and cash equivalents. The ratio remained below 1.50 from June 2023 through March 2026, reflecting a period of diminished immediate liquidity.
- Cash Asset Fluctuations
- Total cash assets experienced a general decline from $133,970 million in March 2022 to a minimum of $93,230 million in September 2024. After a period of relative stabilization between $95,000 million and $126,000 million, a significant increase occurred in June 2026, with assets rising to $242,474 million.
- Current Liabilities Growth
- Current liabilities exhibited a steady increase over the analyzed timeframe, rising from $61,948 million in March 2022 to $126,111 million in June 2026. The growth in short-term obligations acted as a primary driver for the compression of the cash ratio throughout 2023 and 2024.
- Liquidity Rebound
- A substantial recovery in liquidity is evident in the final stages of the period. The cash ratio rose from 0.99 in September 2025 to 1.92 by June 2026. This turnaround was precipitated by the surge in total cash assets, which expanded more rapidly than the corresponding increase in current liabilities, restoring the liquidity buffer to levels approximating those seen in early 2022.
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