Alphabet Inc Financial Analysis

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Alphabet Inc.

Financial Analysis

Institution

Course

Professor

Date
Alphabet Inc. Financial Analysis

Company Name: Alphabet Inc.

Web Address for Financial Reports:

https://www.sec.gov/Archives/edgar/data/1652044/000165204423000016/goog-

20221231.htm#ia96e4fb0476549c99dc3a2b2368f643f_196

Why I am Interested in this Company:

The fact that Alphabet Inc. not only does it stand as one of the most winning technology

companies globally but also oversees Google as its parent intrigues my interest in the

commercial sector. Given Google's immense global reach in delivering goods and services

consumed everywhere on earth, I wanted to gain further insight into the financial outcomes of

this industry titan. In addition, the fact that Alphabet Inc. With ground-breaking strides being

made in a variety of industries like artificial intelligence and driverless cars, analyzing this

business proves to be a highly intriguing endeavor.

Current Ratio Calculation:

Total Current Assets: $164,795 million

Total Current Liabilities: $69,300 million

Current Ratio = Total Current Assets / Total Current Liabilities

Current Ratio = $164,795 million / $69,300 million

Current Ratio = 2.38


What I Have Learned from this Analysis:

According to the calculations made from the annual report of 2022, Alphabet Inc. has a

current ratio of 2.38. Drawing inferences from this relationship, one could hypothesize that the

company possesses over double the current assets in comparison to its current liabilities. When

assessing a firm's finances, a current ratio greater than one commonly portends well because it

suggests the company maintains adequate liquid resources to meet near-term obligations. The

current ratio shows that the corporation can pay all its short-term debt with current assets

(Pattiruhu & Paais, 2020).

Through my examination, I have now gained insight into the organization known as

Alphabet Inc. as it has a decent current ratio, which contributes to the company's solid financial

situation. It appears from this that the company has adequately readied itself to meet near-term

commitments and outlays essential to maintaining dependability and solidity for a colossal

transdisciplinary corporate entity comparable to Alphabet Incorporated. In gauging a firm's

aggregated fiscal well-being and execution, it is basic however to consider an assortment of extra

budgetary markers and perspectives other than only the fundamental budgetary records.
References

Pattiruhu, J. R., & Paais, M. (2020). Effect of liquidity, profitability, leverage, and firm size on

dividend policy. The Journal of Asian Finance, Economics and Business (JAFEB), 7(10),

35-42.

U.S. SECURITIES AND EXCHANGE COMMISSION. (2023, February 3). goog-20221231.

Www.sec.gov.

https://www.sec.gov/Archives/edgar/data/1652044/000165204423000016/goog-

20221231.htm#ia96e4fb0476549c99dc3a2b2368f643f_196

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