Quick Ratio
Higher than 33% of Communication Services sector peers
Updated 168h ago
Sector Performance
33th percentileGOOGL
0.91x
Sector Median
1.18x
Sector Avg
1.84x
Deep Analysis
The quick ratio measures a company's ability to cover its short-term liabilities with its most liquid assets (cash, marketable securities, and receivables), excluding inventory.
Alphabet’s current quick ratio of 0.91x means it holds only $0.91 in liquid assets for every $1.00 of short-term obligations, which is below the sector median of 1.18x and places it at the 28th percentile among Communication Services peers. Over the last eight quarters, the trend is decreasing, with no year-over-year data available but a quarter-over-quarter decline of -46.8% (from 1.71x to 0.91x). This combination of a below-median level and a sharp downward trend implies rising liquidity risk, which could pressure the stock if cash flows weaken. The metric contradicts the overall BULLISH verdict, as deteriorating liquidity does not align with a favorable investment outlook.
Frequently Asked Questions
What does the Quick Ratio tell investors about GOOGL?
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
How is the Quick Ratio calculated?
Quick Ratio is calculated as: (Cash + Receivables) / Current Liabilities.
How does GOOGL's Quick Ratio compare to its sector?
GOOGL's Quick Ratio of 0.91x compares to a Communication Services sector median of 1.18x, placing it in the 33th percentile.
Who are GOOGL's closest peers by Quick Ratio?
The closest Communication Services peers by Quick Ratio include: NFLX (1.18x), SPOT (1.22x), DASH (0.93x), NYT (1.44x), GOOG (0.91x).
The Formula
(Cash + Receivables) / Current Liabilities
Why It Matters
A strict liquidity test. Values below 1.0 suggest a company may struggle to cover short-term obligations without selling inventory.
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0.91x
Sector Median
1.18x
Sector Avg
1.84x
How GOOGL's Quick Ratio compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.