Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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Short-term Activity Ratios (Summary)
Alphabet Inc., short-term (operating) activity ratios (quarterly data)
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Receivables Turnover
- The receivables turnover ratio exhibits fluctuations over the observed quarters, generally ranging between approximately 6.4 and 8.1. The highest peak occurs around the third quarter of 2022, followed by a general declining trend into 2023 and early 2024. This indicates some variability in the efficiency of receivables collection, with periods of higher turnover suggesting improved collection effectiveness, while the later decline points to slightly slower collection cycles.
- Payables Turnover
- Payables turnover shows notable volatility, with values oscillating between roughly 14.9 and 33.9. There is a significant spike in the first two quarters of 2022, reaching the highest point in that timeframe, which may reflect faster payments to suppliers during that period. After this peak, the ratio declines steadily through to late 2024 and into 2025, indicating a lengthening of the payables payment period and potentially more extended vendor credit usage.
- Working Capital Turnover
- The working capital turnover ratio demonstrates a stable upward trend throughout the entire timeframe, increasing from about 1.7 in early 2021 to over 5.1 by late 2025. This consistent growth signals increasingly efficient use of working capital in generating revenue, reflecting enhanced operational effectiveness or better management of current assets and liabilities.
- Average Receivable Collection Period
- The average collection period shows moderate variability but remains within a relatively narrow range of approximately 45 to 57 days. Notably, there is a decrease in collection days around the middle of 2022 and the first quarters of 2023, corresponding with an increase in receivables turnover during the same periods. However, the subsequent return to higher days suggests some regression to longer collection periods in late 2023 and onward.
- Average Payables Payment Period
- The average payables payment period mostly inverse correlates with payables turnover, fluctuating between about 11 and 24 days. It reaches a low around early 2022, aligns with the spike in payables turnover, and then shows a gradual increase over time, peaking near 24 days in late 2025. This trend suggests that the company extended the time taken to pay suppliers progressively, which may improve cash flow but could impact supplier relationships.
Turnover Ratios
Average No. Days
Receivables Turnover
Alphabet Inc., receivables turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||
| Accounts receivable, net | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Receivables turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Receivables turnover
= (RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024)
÷ Accounts receivable, net
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Revenues
- The quarterly revenues demonstrate a generally upward trajectory over the observed periods. Beginning at approximately $55.3 billion in early 2021, revenues increased steadily with occasional fluctuations. Notably, there is a marked rise towards the end of each year, suggesting seasonal or cyclical factors impacting revenue generation, with December quarters typically exhibiting peak values. The revenue rises continuously from early 2023 onwards, reaching over $102 billion by the third quarter of 2025. The overall trend indicates consistent growth, albeit with some quarters showing slower increases or minor declines compared to the immediately preceding quarter.
- Accounts Receivable, Net
- The accounts receivable figures also show a strong upward trend over time, moving from around $28 billion in the first quarter of 2021 to above $57 billion by the third quarter of 2025. This increase aligns with the growth in revenues, reflecting the expansion in credit extended to customers or delayed payments. There are noticeable quarterly increases towards year-ends as well, suggesting period-end sales surges or extended receivables during those times. The general rise in accounts receivable points to a growing customer base or increased sales on credit, but it also signals a potential rise in the cash conversion cycle.
- Receivables Turnover Ratio
- The receivables turnover ratio fluctuates within a moderate range over the period. Starting at around 7.02 in early 2021, the ratio exhibits variation but does not show a sustained upward or downward trend. Peaks above 8.0 appear during mid-2022, while notable decreases to levels near 6.4 occur in the final quarter of 2023. Generally, the ratio remains between approximately 6.4 and 8.1, indicating relative stability in the efficiency of collecting receivables. The slight downward trend in recent quarters suggests that accounts receivable may be increasing faster than revenues, potentially leading to longer collection periods or shifts in credit terms.
- Overall Analysis
- The company demonstrates consistent revenue growth accompanied by a proportional increase in accounts receivable, reflecting expansion activities. However, the stable yet slightly declining trend in receivables turnover toward the end of the period may warrant increased attention to credit management and collection processes. Seasonal patterns influence both revenues and receivables, particularly with spikes observed at year-end, implying that operational planning should consider these cyclical effects. The balance between growing sales and receivables efficiency will be critical for maintaining liquidity and operational effectiveness in the forthcoming periods.
Payables Turnover
Alphabet Inc., payables turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Cost of revenues | |||||||||||||||||||||||||
| Accounts payable | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Payables turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Payables turnover
= (Cost of revenuesQ3 2025
+ Cost of revenuesQ2 2025
+ Cost of revenuesQ1 2025
+ Cost of revenuesQ4 2024)
÷ Accounts payable
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Cost of Revenues
- The cost of revenues exhibits a generally upward trend over the analyzed periods, increasing from approximately $24.1 billion in the first quarter of 2021 to over $41.3 billion by the third quarter of 2025. There are fluctuations within this overall increase, with some quarters showing slight declines or slower growth, such as the drop seen in the quarter ending March 2023 compared to the prior quarter. However, the longer-term pattern reflects steady growth in costs associated with revenue generation, particularly notable peaks at the end of calendar years and consistent rises in recent periods.
- Accounts Payable
- Accounts payable balances demonstrate variability without a clear linear trend across the periods. The values oscillate between approximately $3.4 billion and $10.5 billion. Certain quarters, notably at the end of 2021 and the end of 2024, experienced significant increases in payables, while mid-year quarters often show reductions or stabilization. This variability suggests changes in the timing of payments or purchasing cycles. The sharp increase in accounts payable towards the later quarters, especially from 2023 onward, indicates either a buildup of short-term obligations or delayed payments coinciding with rising costs of revenues.
- Payables Turnover Ratio
- The payables turnover ratio, indicating how quickly the company pays its suppliers, displays a declining trend over the observed timeframe. Starting at approximately 18.7 times in early 2021, it escalated sharply to a peak around 33.9 times in Q1 2022, before generally trending downward to a low of about 14.9 times by Q3 2025. This decline implies slower payment of accounts payable over time. The sharp peak in early 2022 might reflect unusually rapid payment cycles during that quarter, but the subsequent steady decrease suggests an intentional or operational shift to extending payment terms or slower disbursements to suppliers.
- Overall Analysis
- The simultaneous increase in cost of revenues and accounts payable accompanied by a declining payables turnover ratio suggests the company is experiencing growth in operational scale and may be managing cash flow by extending payment periods to suppliers. The fluctuation in accounts payable and turnover ratio indicates changes in purchasing and payment strategies, possibly reflecting broader market or internal financial management policies. The increase in cost of revenues aligns with expanded operations or higher input costs, and the delayed payments might serve as a mechanism to preserve liquidity amid rising expenditures.
Working Capital Turnover
Alphabet Inc., working capital turnover calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||||
| Less: Current liabilities | |||||||||||||||||||||||||
| Working capital | |||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||
| Working capital turnover1 | |||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Working capital turnover
= (RevenuesQ3 2025
+ RevenuesQ2 2025
+ RevenuesQ1 2025
+ RevenuesQ4 2024)
÷ Working capital
= ( + + + )
÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibits a downward trend over the observed periods. Starting at approximately $116.7 billion in the first quarter of 2021, it gradually declines with some fluctuations, reaching around $74.4 billion by the third quarter of 2025. Notably, the decline is more pronounced from early 2023 onwards, indicating a potential tightening in short-term assets relative to liabilities.
- Revenues
- Revenues display a generally upward trajectory despite some volatility. Beginning at about $55.3 billion in the first quarter of 2021, revenue increases through subsequent quarters with occasional dips but achieves approximately $102.3 billion by the third quarter of 2025. Revenue growth appears solid especially in the periods after 2022, signaling sustained business expansion or improved sales performance.
- Working Capital Turnover Ratio
- The ratio of working capital turnover steadily rises from 1.69 in the first quarter of 2021 to 5.18 by the third quarter of 2025. This increase denotes that revenues are growing at a faster rate than working capital, reflecting potentially more efficient use of working capital to generate sales. The rise is consistent and notable, indicating improving operational efficiency or tighter capital management.
- Overall Analysis
- The combination of declining working capital and increasing revenues results in a significant increase in working capital turnover throughout the periods analyzed. This trend suggests an enhancement in the company's ability to utilize its working capital efficiently, possibly reducing excess inventory or accelerating receivables collection while sustaining revenue growth. However, the contraction in working capital might also imply increased liquidity risk or more aggressive working capital management strategies that should be monitored carefully.
Average Receivable Collection Period
Alphabet Inc., average receivable collection period calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||
| Receivables turnover | |||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average receivable collection period1 | |||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio exhibits some fluctuations over the observed quarters. It initially decreased from 7.02 to 6.55 between March 2021 and December 2021, indicating a slight slowdown in the frequency of collecting receivables. However, the ratio increased significantly to reach a peak of 8.13 by September 2022, suggesting improved efficiency in collecting receivables during that period. Following this peak, the turnover ratio gradually declined, moving mostly downward through subsequent quarters, falling to approximately 6.75 by September 2025. This decline may point to a reduced pace of collections or extended credit terms in recent quarters.
- Average Receivable Collection Period
- The average receivable collection period varies inversely with the receivables turnover ratio, confirming the consistency of the data. It starts around 52 days in March 2021, rising to as high as 57 days by December 2023, indicating longer timeframes to collect receivables during some quarters. The shortest collection periods occur around mid-2022, with a minimum of 45 days in September 2022, coinciding with the peak in receivables turnover. Toward the end of the time series, the collection period again lengthens to approximately 54 days by September 2025, which corresponds to the observed decrease in turnover ratio, signifying a trend toward slower collections or more extended credit policies over time.
- Overall Interpretation
- The trends reflect periods of both tightening and loosening in credit and collection practices. The peak turnover and shortest collection periods in mid to late 2022 suggest a phase of increased operational efficiency or stringent credit management. Conversely, the gradual decline in turnover ratio and the increase in collection periods toward the later years may imply a relaxation of these policies or challenges in receivables collection, potentially affecting liquidity. Continuous monitoring of these indicators is advisable to maintain effective working capital management.
Average Payables Payment Period
Alphabet Inc., average payables payment period calculation (quarterly data)
| 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 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||||
| Payables turnover | |||||||||||||||||||||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||
| Average payables payment period1 | |||||||||||||||||||||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||||
| Trade Desk Inc. | |||||||||||||||||||||||||
Based on: 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), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio exhibits notable fluctuations over the examined periods. Initially, the ratio rose from 18.72 to a peak of 33.89 by March 31, 2022, indicating a more rapid payment to suppliers during this timeframe. This peak, however, is followed by a general downward trend, with intermittent recovery periods, declining to 14.92 by September 30, 2025. The overall pattern suggests that after a phase of accelerated payable turnover, the company gradually extended its payment cycle, reducing the frequency of payables turnover in later periods.
- Average Payables Payment Period
- The average payables payment period, expressed in days, tends to move inversely to the payables turnover ratio, as expected. Starting from 20 days at the beginning of the timeline, the payment period decreased to a low of 11 days by March 31, 2022, coinciding with the peak in payables turnover. Subsequently, the payment period lengthened again, ultimately reaching 24 days by September 30, 2025. This elongation of the payment period indicates a shift towards taking more time to settle payables, which corresponds with the observed decline in payables turnover ratio over the same period.
- General Observations
- The data reveals an overall shift in the company's payment behavior. During the earlier part of the timeline, payables were settled more quickly, as evidenced by both a higher turnover ratio and a shorter payment period. Conversely, the latter part shows a tendency to delay payments, reflected in decreased payables turnover and increased payment duration. These changes may indicate adjustments in cash management strategies or evolving supplier payment terms.