Understanding GOOGL's Debt Levels
Debt Composition
Debt Ratios
Alphabet Inc Class A carries $0.00B in total debt, with a debt-to-equity ratio of N/A. This high debt burden relative to equity raises concerns about financial leverage. While debt can fuel growth, excessive leverage limits financial flexibility and increases vulnerability to economic headwinds or rising interest rates.
Cash Position and Liquidity
Cash Reserves
$30.71B
Current Assets
$206.04B
Current Liabilities
$102.75B
With $30.71B in cash and cash equivalents, GOOGL maintains limited cash reserves representing a small portion of total debt.
Liquidity Metrics
Strong liquidity - company can easily meet short-term obligations
Quick ratio excludes inventory - measures immediate liquidity
Interest Coverage and Debt Servicing
Interest Coverage Ratio
N/Ax
Interest coverage data is not available or the company may not have interest-bearing debt.
The interest coverage ratio measures how many times a company can pay its interest expenses with its operating income. A ratio above 3.0x is generally considered healthy, while ratios below 1.5x may indicate financial stress.
Free Cash Flow Analysis
$0.00B
$0.00B
GOOGL is currently consuming cash from operations ($0.00B), which may indicate growth investments or operational challenges. This cash burn rate warrants monitoring, especially given the company's debt levels.
Can GOOGL Pay Its Debts?
Likely - With Monitoring Required
GOOGL shows adequate ability to meet debt obligations under normal conditions, but investors should monitor key metrics. mean the company has less room for error if business conditions deteriorate.
Key Considerations
- Short-term Liquidity: Current ratio of 2.01 indicates strong ability to meet obligations due within one year.
- Leverage Level: Debt-to-equity of N/A represents high financial leverage.
- Cash Generation: Negative free cash flow may require reliance on financing or asset sales.
Financial Stability Conclusion
GOOGL exhibits moderate financial health requiring ongoing monitoring.
While the company maintains operational viability, several financial metrics suggest limited flexibility. Investors should monitor and financial trends closely for signs of improvement or deterioration.
This analysis is based on the most recent financial statements as of 12/31/2025. Financial health can change over time based on business performance, market conditions, and management decisions.