GOOGL Current Ratio Analysis
Higher than 80% of Communication Services sector peers
Updated 156h ago·SEC filings & market data
Key Takeaway
Alphabet’s current ratio of 2.72x means it has $2.72 in current assets—like cash, receivables, and inventory—for every $1 of current liabilities due within a year, indicating strong short-term liquidity.
Sector Performance
80th percentileGOOGL
2.72x
Sector Median
2.04x
Sector Avg
2.71x
Prior Period
1.92x(Jul 2026)
Deep Analysis
Alphabet’s current ratio of 2.72x means it has $2.72 in current assets—like cash, receivables, and inventory—for every $1 of current liabilities due within a year, indicating strong short-term liquidity.
This is above the Communication Services sector median of 1.79x, placing Alphabet in the 86th percentile of peers, so it holds more liquidity cushion than most comparable companies. The year-over-year change is not available, but the quarter-over-quarter change is +41.7%, with the ratio moving from 1.92x to 2.72x in the most recent period. Since the level is high and the latest quarter shows a sharp increase, the liquidity risk appears low, reducing near-term financial stress. This combination of a high current ratio and rising trend lowers the chance of cash flow problems, which is a positive factor for investors. However, it only partially informs the broader NEUTRAL verdict, since liquidity is just one dimension of valuation and growth. This metric supports the NEUTRAL stance by confirming no urgent balance-sheet risk, without overriding other factors that keep the overall view balanced.
Frequently Asked Questions
What does the Current Ratio tell investors about GOOGL?
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
How is the Current Ratio calculated?
Current Ratio is calculated as: Current Assets / Current Liabilities.
How does GOOGL's Current Ratio compare to its sector?
GOOGL's Current Ratio of 2.72x compares to a Communication Services sector median of 2.04x, placing it in the 80th percentile.
Who are GOOGL's closest peers by Current Ratio?
The closest Communication Services peers by Current Ratio include: BIDU (1.85x), META (2.23x), NFLX (1.14x), VOD (1.14x), TWTR (7.15x).
Learn More About Current Ratio
The Formula
Current Assets / Current Liabilities
Why It Matters
Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.
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2.72x
Sector Median
2.04x
Sector Avg
2.71x
How GOOGL's Current Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.