Alphabet Inc. (GOOGL) Financials
A multiple compares the market's price with a filed figure; it says what the market pays, not how the business is doing. The market capitalization is the vendor's as of Oct 14, 2026; every other figure is from the SEC filings on this page. Not financial advice.
Newest figures come from the 10-Q for Q2 FY2026, filed Jul 23, 2026. Each column of the statement tables below links to the filing it was taken from, and every filing is listed on the GOOGL SEC filings page.
Alphabet Inc. (GOOGL) reported $445.9B in revenue over the twelve months to Jun 30, 2026, up 20.1% from the prior twelve months. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 13 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Alphabet’s sales growth still converts into roughly one-third operating margins, but heavier reinvestment is limiting free-cash-flow growth.
FY2025 paired substantial operating cash generation of$164.7B with free cash flow of$73.3B . Capital expenditures of$91.4B explain most of that gap, showing that incremental cash is being redirected into reinvestment rather than appearing as cash after capital spending.
Operating margin recovered from
FY2025 assets reached
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Alphabet Inc.'s business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Alphabet Inc. has an operating margin of 32.0%, meaning the company retains $32 of operating profit per $100 of revenue. This strong profitability earns a score of 95/100, reflecting efficient cost management and pricing power. This is down from 32.1% the prior year.
Alphabet Inc.'s revenue surged 15.1% year-over-year to $402.8B, reflecting rapid business expansion. This strong growth earns a score of 74/100.
Alphabet Inc. carries a low D/E ratio of 0.11, meaning only $0.11 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 80/100, indicating a strong balance sheet with room for future borrowing.
Alphabet Inc.'s current ratio of 2.01 indicates adequate short-term liquidity, earning a score of 59/100. The company can meet its near-term obligations, though with limited headroom.
Alphabet Inc. converts 18.2% of revenue into free cash flow ($73.3B). This strong cash generation earns a score of 86/100.
Alphabet Inc. earns a strong 31.8% return on equity (ROE), meaning it generates $32 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 96/100. This is up from 30.8% the prior year.
Alphabet Inc. scores 16.78, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($4.3T) relative to total liabilities ($180.0B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Alphabet Inc. passes 6 of 9 financial strength tests. 3 of 4 profitability signals pass, 2 of 3 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Alphabet Inc. generates $1.25 in operating cash flow ($164.7B OCF vs $132.2B net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.
Alphabet Inc. earns $175.32 in operating income for every $1 of interest expense ($129.0B vs $736.0M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Alphabet Inc. generated $119.8B in revenue in Q2 2026. This represents an increase of 24.2% from the same quarter a year earlier. Against the prior quarter it is up 9.0%.
Alphabet Inc.'s EBITDA was $48.5B in Q2 2026, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 32.9% from the same quarter a year earlier. Against the prior quarter it is up 4.1%.
Alphabet Inc. reported $112.2B in net income in Q2 2026. This represents an increase of 297.9% from the same quarter a year earlier. Against the prior quarter it is up 79.3%.
Alphabet Inc. earned $9.11 per diluted share (EPS) in Q2 2026. This represents an increase of 294.4% from the same quarter a year earlier. Against the prior quarter it is up 78.3%.
Cash & Balance Sheet
Alphabet Inc. recorded an outflow of $5.9B in free cash flow in Q2 2026, representing a cash shortfall after capex. This represents a decrease of 210.5% from the same quarter a year earlier. Against the prior quarter it is down 157.9%.
Alphabet Inc. held $55.9B in cash against $98.2B in long-term debt as of Q2 2026.
Alphabet Inc. paid $0.22 per share in dividends in Q2 2026. This represents an increase of 4.8% from the same quarter a year earlier. Against the prior quarter it is up 4.8%.
Margins & Returns
Alphabet Inc.'s gross margin was 61.7% in Q2 2026, indicating the percentage of revenue retained after direct costs. This is up 2.1 percentage points from the same quarter a year earlier. Against the prior quarter it is down 0.8 percentage points.
Alphabet Inc.'s operating margin was 34.0% in Q2 2026, reflecting core business profitability. This is up 1.6 percentage points from the same quarter a year earlier. Against the prior quarter it is down 2.1 percentage points.
Alphabet Inc.'s net profit margin was 93.7% in Q2 2026, showing the share of revenue converted to profit. This is up 64.4 percentage points from the same quarter a year earlier. Against the prior quarter it is up 36.7 percentage points.
Alphabet Inc.'s ROE was 17.5% in Q2 2026, measuring profit generated per dollar of shareholder equity. This is up 9.7 percentage points from the same quarter a year earlier. Against the prior quarter it is up 4.4 percentage points.
Capital Allocation
Alphabet Inc. invested $18.2B in research and development in Q2 2026. This represents an increase of 31.9% from the same quarter a year earlier. Against the prior quarter it is up 7.0%.
Alphabet Inc. repurchased no shares in Q2 2026. This represents a decrease of 100.0% from the same quarter a year earlier.
Alphabet Inc. invested $44.9B in capex in Q2 2026, funding long-term assets and infrastructure. This represents an increase of 100.1% from the same quarter a year earlier. Against the prior quarter it is up 25.9%.
GOOGL Income Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Revenue | $119.8B+24.2% | $109.9B+21.8% | $113.8B+18.0% | $102.3B+15.9% | $96.4B+13.8% | $90.2B+12.0% | $96.5B+11.8% | $88.3B+15.1% |
| Cost of Revenue | $45.9B+17.7% | $41.3B+13.5% | $45.8B+12.7% | $41.4B+13.4% | $39.0B+9.9% | $36.4B+7.9% | $40.6B+8.1% | $36.5B+9.8% |
| Gross Profit | $73.9B+28.7% | $68.6B+27.4% | $68.1B+21.9% | $61.0B+17.7% | $57.4B+16.6% | $53.9B+15.0% | $55.9B+14.6% | $51.8B+19.2% |
| R&D Expenses | $18.2B+31.9% | $17.0B+25.6% | $18.6B+41.6% | $15.2B+21.7% | $13.8B+16.4% | $13.6B+13.9% | $13.1B+8.3% | $12.4B+10.6% |
| SG&A Expenses | $6.5B+24.0% | $4.3B+21.2% | $5.3B+21.2% | $7.4B+105.4% | $5.2B+64.9% | $3.5B+17.0% | $4.4B-15.4% | $3.6B-9.6% |
| Operating Income | $40.8B+30.4% | $39.7B+29.7% | $35.9B+16.0% | $31.2B+9.5% | $31.3B+14.0% | $30.6B+20.2% | $31.0B+30.7% | $28.5B+33.6% |
| EBITDA | $48.5B+32.9% | $46.6B+31.9% | $41.9B+18.8% | $37.0B+13.4% | $36.5B+16.9% | $35.3B+21.9% | $35.3B+28.4% | $32.6B+33.1% |
| Interest Expense | $1.3B+389.7% | $533.0M+1467.6% | $298.0M+462.3% | $143.0M+164.8% | $261.0M+289.6% | $34.0M-63.8% | $53.0M-23.2% | $54.0M-53.4% |
| Income Tax | $26.6B+363.0% | $14.8B+104.6% | $4.7B-18.3% | $9.0B+66.7% | $5.7B+45.9% | $7.2B+55.8% | $5.7B+53.2% | $5.4B+258.4% |
| Net Income | $112.2B+297.9% | $62.6B+81.2% | $34.5B+29.8% | $35.0B+33.0% | $28.2B+19.4% | $34.5B+46.0% | $26.5B+28.3% | $26.3B+33.6% |
| EPS (Basic) | $9.23+296.1% | $5.17+82.0% | $2.85+31.3% | $2.89+35.0% | $2.33+22.0% | $2.84+48.7% | $2.17+31.5% | $2.14+37.2% |
| EPS (Diluted) | $9.11+294.4% | $5.11+81.9% | $2.82+31.8% | $2.87+35.4% | $2.31+22.2% | $2.81+48.7% | $2.14+30.5% | $2.12+36.8% |
| Diluted Shares (Avg) | 12.31B+0.9% | 12.24B-0.4% | N/A | 12.20B-1.7% | 12.20B-2.4% | 12.29B-1.9% | N/A | 12.42B-2.2% |
GOOGL Balance Sheet
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $922.0B+83.6% | $703.9B+48.1% | $595.3B+32.2% | $536.5B+24.7% | $502.1B+21.0% | $475.4B+16.7% | $450.3B+11.9% | $430.3B+8.5% |
| Current Assets | $343.5B+106.7% | $213.8B+31.9% | $206.0B+25.9% | $173.9B+10.4% | $166.2B+2.6% | $162.1B-2.1% | $163.7B-4.6% | $157.5B-10.6% |
| Cash & Equivalents | $55.9B+165.8% | $38.1B+63.6% | $30.7B+30.9% | $23.1B+15.7% | $21.0B-22.7% | $23.3B-5.0% | $23.5B-2.4% | $20.0B-35.0% |
| Short-Term Investments | $186.6B+151.7% | $88.8B+23.2% | $96.1B+33.2% | $75.4B+2.9% | $74.1B+0.8% | $72.1B-13.8% | $72.2B-16.9% | $73.3B-17.9% |
| Inventory | $10.0B | N/A | $2.4B | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $69.2B+25.7% | $63.0B+23.5% | $62.9B+20.1% | $57.1B+16.4% | $55.0B+16.9% | $51.0B+14.5% | $52.3B+9.1% | $49.1B+19.7% |
| Long-Term Investments | $131.5B+150.0% | $106.9B+28343.1% | $68.7B+25722.2% | $63.8B+25117.4% | $52.6B+18948.6% | $376.0M-73.1% | $266.0M-81.0% | $253.0M-73.6% |
| Goodwill | $57.8B+78.8% | $57.8B+79.6% | $33.4B+4.7% | $33.3B+4.2% | $32.3B+10.8% | $32.2B+10.2% | $31.9B+9.2% | $31.9B+9.6% |
| Total Liabilities | $281.5B+102.3% | $225.2B+73.1% | $180.0B+43.8% | $149.6B+28.8% | $139.1B+22.0% | $130.1B+13.6% | $125.2B+5.2% | $116.1B-6.0% |
| Current Liabilities | $126.1B+44.4% | $111.2B+21.3% | $102.7B+15.3% | $99.5B+23.2% | $87.3B+12.1% | $91.7B+19.0% | $89.1B+8.9% | $80.8B-6.4% |
| Non-Current Liabilities | $155.4B+199.8% | $114.0B+196.4% | $77.3B+114.3% | $50.1B+41.6% | $51.8B+43.5% | $38.5B+2.5% | $36.0B-3.1% | $35.3B-5.0% |
| Long-Term Debt | $98.2B+315.8% | $77.5B+611.9% | $46.5B+327.7% | $21.6B+75.7% | $23.6B+78.3% | $10.9B-17.7% | $10.9B-8.3% | $12.3B-10.8% |
| Total Equity | $640.5B+76.5% | $478.7B+38.7% | $415.3B+27.7% | $386.9B+23.2% | $362.9B+20.7% | $345.3B+17.9% | $325.1B+14.7% | $314.1B+15.0% |
| Retained Earnings | $493.4B+78.9% | $384.0B+46.2% | $324.1B+32.2% | $297.2B+26.3% | $275.8B+22.0% | $262.6B+19.5% | $245.1B+16.0% | $235.3B+14.4% |
GOOGL Cash Flow Statement
Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $39.1B+40.8% | $45.8B+26.7% | $52.4B+34.0% | $48.4B+57.7% | $27.7B+4.2% | $36.1B+25.3% | $39.1B+106.8% | $30.7B+0.1% |
| Depreciation & Amortization | $7.7B+47.7% | $6.9B+46.4% | $6.2B+44.2% | $5.8B+40.6% | $5.2B+37.5% | $4.7B+34.6% | $4.3B+30.3% | $4.1B+29.3% |
| Stock-Based Compensation | $8.0B+33.3% | $6.8B+22.4% | N/A | $6.4B+8.5% | $6.0B+1.7% | $5.5B+4.8% | N/A | $5.9B+1.7% |
| Capital Expenditures | $44.9B+100.1% | $35.7B+107.4% | $27.9B+95.1% | $24.0B+83.4% | $22.4B+70.2% | $17.2B+43.2% | $14.3B+29.6% | $13.1B+62.1% |
| Free Cash Flow | -$5.9B-210.5% | $10.1B-46.6% | $24.6B-1.2% | $24.5B+38.7% | $5.3B-60.6% | $19.0B+12.6% | $24.8B+214.6% | $17.6B-22.0% |
| Investing Cash Flow | -$82.4B-235.9% | -$63.4B-291.4% | -$51.8B-220.0% | -$27.8B-54.2% | -$24.5B-782.6% | -$16.2B-89.1% | -$16.2B-162.4% | -$18.0B-151.9% |
| Financing Cash Flow | $61.2B+1150.1% | $25.1B+224.1% | $7.0B+136.9% | -$18.4B+8.5% | -$5.8B+72.1% | -$20.2B-2.5% | -$19.0B+1.4% | -$20.1B-9.3% |
| Dividends Paid | N/A | $2.5B+4.4% | $2.5B+3.8% | $2.5B+3.3% | $2.5B0.0% | $2.4B | $2.4B | $2.5B |
| Share Buybacks | $0-100.0% | $0-100.0% | $5.5B-64.6% | $11.9B-22.2% | $13.2B-15.6% | $15.1B-4.0% | $15.6B-4.0% | $15.3B-3.1% |
GOOGL Financial Ratios
Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.
| Metric | Q2'2610-Q | Q1'2610-Q | Q4'2510-Q | Q3'2510-Q | Q2'2510-Q | Q1'2510-Q | Q4'2410-K | Q3'2410-Q |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 61.7%+2.1pp | 62.5%+2.8pp | 59.8%+1.9pp | 59.6%+0.9pp | 59.5%+1.4pp | 59.7%+1.6pp | 57.9%+1.4pp | 58.7%+2.0pp |
| Operating Margin | 34.0%+1.6pp | 36.1%+2.2pp | 31.6%-0.5pp | 30.5%-1.8pp | 32.4%+0.1pp | 33.9%+2.3pp | 32.1%+4.6pp | 32.3%+4.5pp |
| Net Margin | 93.7%+64.4pp | 56.9%+18.7pp | 30.3%+2.8pp | 34.2%+4.4pp | 29.2%+1.4pp | 38.3%+8.9pp | 27.5%+3.5pp | 29.8%+4.1pp |
| Return on Equity | 17.5%+9.7pp | 13.1%+3.1pp | 8.3%+0.1pp | 9.0%+0.7pp | 7.8%-0.1pp | 10.0%+1.9pp | 8.2%+0.9pp | 8.4%+1.2pp |
| Return on Assets | 12.2%+6.6pp | 8.9%+1.6pp | 5.8%-0.1pp | 6.5%+0.4pp | 5.6%-0.1pp | 7.3%+1.5pp | 5.9%+0.8pp | 6.1%+1.2pp |
| Current Ratio | 2.72+0.8x | 1.92+0.2x | 2.01+0.2x | 1.75-0.2x | 1.90-0.2x | 1.77-0.4x | 1.84-0.3x | 1.95-0.1x |
| Debt-to-Equity | 0.15+0.1x | 0.16+0.1x | 0.11+0.1x | 0.060.0x | 0.070.0x | 0.030.0x | 0.030.0x | 0.040.0x |
| Asset Turnover | 0.13-0.1x | 0.160.0x | 0.190.0x | 0.190.0x | 0.190.0x | 0.190.0x | 0.210.0x | 0.210.0x |
| FCF Margin | -4.9%-10.4pp | 9.2%-11.8pp | 21.6%-4.2pp | 23.9%+3.9pp | 5.5%-10.4pp | 21.0%+0.1pp | 25.8%+16.6pp | 20.0%-9.5pp |
Similar Companies
Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.
| Company | Fiscal year | Revenue | Net income | Net margin | Market cap | Health score |
|---|---|---|---|---|---|---|
| Alphabet Inc. GOOGL | FY2025 | $402.8B | $132.2B | 32.8% | $4.3T | 82/100 |
| Alphabet Inc. GOOG | FY2025 | $402.8B | $132.2B | 32.8% | $4.3T | 82/100 |
| Meta Platforms, Inc. META | FY2025 | $201.0B | $60.5B | 30.1% | $1.9T | 84/100 |
| Reddit RDDT | FY2025 | $2.2B | $530.0M | 24.1% | $30.8B | 68/100 |
Where Alphabet Inc. Ranks
Frequently Asked Questions
What is Alphabet Inc.'s annual revenue?
Alphabet Inc. (GOOGL) reported $402.8B in total revenue for fiscal year 2025. This represents a 15.1% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Alphabet Inc.'s revenue growing?
Alphabet Inc. (GOOGL) revenue grew by 15.1% year-over-year, from $350.0B to $402.8B in fiscal year 2025.
Is Alphabet Inc. profitable?
Yes, Alphabet Inc. (GOOGL) reported a net income of $132.2B in fiscal year 2025, with a net profit margin of 32.8%.
What is Alphabet Inc.'s EBITDA?
Alphabet Inc. (GOOGL) had EBITDA of $150.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
How much debt does Alphabet Inc. have?
As of fiscal year 2025, Alphabet Inc. (GOOGL) had $30.7B in cash and equivalents against $46.5B in long-term debt.
What is Alphabet Inc.'s gross margin?
Alphabet Inc. (GOOGL) had a gross margin of 59.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Alphabet Inc.'s operating margin?
Alphabet Inc. (GOOGL) had an operating margin of 32.0% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Alphabet Inc.'s net profit margin?
Alphabet Inc. (GOOGL) had a net profit margin of 32.8% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
Does Alphabet Inc. pay dividends?
Yes, Alphabet Inc. (GOOGL) paid $0.83 per share in dividends during fiscal year 2025.
What is Alphabet Inc.'s return on equity (ROE)?
Alphabet Inc. (GOOGL) has a return on equity of 31.8% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Alphabet Inc.'s free cash flow?
Alphabet Inc. (GOOGL) generated $73.3B in free cash flow during fiscal year 2025. This represents a 0.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Alphabet Inc.'s operating cash flow?
Alphabet Inc. (GOOGL) generated $164.7B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Alphabet Inc.'s total assets?
Alphabet Inc. (GOOGL) had $595.3B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Alphabet Inc.'s capital expenditures?
Alphabet Inc. (GOOGL) invested $91.4B in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Alphabet Inc. spend on research and development?
Alphabet Inc. (GOOGL) invested $61.1B in research and development during fiscal year 2025.
What is Alphabet Inc.'s current ratio?
Alphabet Inc. (GOOGL) had a current ratio of 2.01 as of fiscal year 2025, which is generally considered healthy.
What is Alphabet Inc.'s debt-to-equity ratio?
Alphabet Inc. (GOOGL) had a debt-to-equity ratio of 0.11 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Alphabet Inc.'s return on assets (ROA)?
Alphabet Inc. (GOOGL) had a return on assets of 22.2% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Alphabet Inc.'s P/E ratio?
Alphabet Inc. (GOOGL) trades at 17.7x earnings, its market capitalization divided by net income of $244.2B net income, trailing 12 months to June 30, 2026. The market capitalization is $4.3T as of Oct 14, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Alphabet Inc.'s price-to-sales ratio?
Alphabet Inc. (GOOGL) trades at 9.7x sales, its market capitalization divided by revenue of $445.9B revenue, trailing 12 months to June 30, 2026. The market capitalization is $4.3T as of Oct 14, 2026; a multiple compares that price with a filed figure and says nothing about the quality of the business.
What is Alphabet Inc.'s Altman Z-Score?
Alphabet Inc. (GOOGL) has an Altman Z-Score of 16.78, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Alphabet Inc.'s Piotroski F-Score?
Alphabet Inc. (GOOGL) has a Piotroski F-Score of 6 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Alphabet Inc.'s earnings high quality?
Alphabet Inc. (GOOGL) has an earnings quality ratio of 1.25x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Alphabet Inc. cover its interest payments?
Alphabet Inc. (GOOGL) has an interest coverage ratio of 175.32x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Alphabet Inc.?
Alphabet Inc. (GOOGL) scores 82 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.