What is ALPHABET INC's earnings per share (EPS)?

ALPHABET INC (GOOGM) reported diluted earnings per share of $10.81 for fiscal year 2025. This represents a 34.5% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

ALPHABET INC Financials

GOOGM

Source SEC Filings (10-K/10-Q) Data as of Jun 30, 2026 Currency USD FYE December

This page shows ALPHABET INC (GOOGM) financial statements, including the 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).

Rhea AI GOOGM FY2025 2026-07-23

Cash generation is accelerating, but a sharp rise in capital spending is now absorbing more of each new $1 of operating cash.

From FY2024 to FY2025, operating cash flow jumped from $125.3B to $164.7B while free cash flow barely moved from $72.8B to $73.3B because capital expenditures expanded from $52.5B to $91.4B. That means the business is not struggling to turn profit into cash; it is choosing to recycle a much larger share of internally generated cash back into assets, which is why free-cash-flow margin fell to 18.2% even as net margin rose to 32.8%.

Margin shape improved at the top of the income statement: gross margin climbed from 56.6% in FY2023 to 59.7% in FY2025, and operating margin held near 32.0% in FY2025 despite heavier R&D and SG&A. That combination points to a business whose revenue base is scaling fast enough to fund larger operating investment without surrendering core profitability.

The balance sheet remains flexible even after a debt increase: long-term debt rose to $46.5B in FY2025 from $10.9B in FY2024, yet debt to equity stayed low at 0.1x and the current ratio was 2.0x. Capital allocation also shifted, with buybacks easing to $45.7B from $62.2B as reinvestment needs expanded, suggesting management prioritized capacity over distributing every extra dollar.

Financial Health Signals

Financial health score pending refresh

We are recalculating ALPHABET INC's peer-relative financial health score against the latest fiscal year. It will appear here once the refresh completes. The signals and metrics below are current.

Piotroski F-Score Neutral

6/9

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.

Earnings Quality Cash-Backed

1.25x

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.

Interest Coverage Safe

175.3x

ALPHABET INC earns $175.3 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

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Earnings & Revenue

Revenue

$402.8B

YoY+15.1%

5Y CAGR+17.2%

10Y CAGR+18.3%

ALPHABET INC generated $402.8B in revenue in fiscal year 2025. This represents an increase of 15.1% from the prior year.

EBITDA

$150.7B

YoY+17.7%

ALPHABET INC's EBITDA was $150.7B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 17.7% from the prior year.

Net Income

$132.2B

YoY+32.0%

5Y CAGR+26.8%

10Y CAGR+23.2%

ALPHABET INC reported $132.2B in net income in fiscal year 2025. This represents an increase of 32.0% from the prior year.

EPS (Diluted)

$10.81

YoY+34.5%

ALPHABET INC earned $10.81 per diluted share (EPS) in fiscal year 2025. This represents an increase of 34.5% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$73.3B

YoY+0.7%

5Y CAGR+11.3%

10Y CAGR+16.0%

ALPHABET INC generated $73.3B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 0.7% from the prior year.

Cash & Debt

$30.7B

YoY+30.9%

5Y CAGR+3.0%

10Y CAGR+6.4%

ALPHABET INC held $30.7B in cash against $46.5B in long-term debt as of fiscal year 2025.

Dividends Per Share

$0.83

YoY+38.3%

ALPHABET INC paid $0.83 per share in dividends in fiscal year 2025. This represents an increase of 38.3% from the prior year.

Shares Outstanding

12.09B

YoY-1.0%

ALPHABET INC had 12.09B shares outstanding in fiscal year 2025. This represents a decrease of 1.0% from the prior year.

Margins & Returns

Gross Margin

59.7%

YoY+1.5pp

5Y CAGR+6.1pp

10Y CAGR-2.8pp

ALPHABET INC's gross margin was 59.7% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 1.5 percentage points from the prior year.

Operating Margin

32.0%

YoY-0.1pp

5Y CAGR+9.4pp

10Y CAGR+6.2pp

ALPHABET INC's operating margin was 32.0% in fiscal year 2025, reflecting core business profitability. This is down 0.1 percentage points from the prior year.

Net Margin

32.8%

YoY+4.2pp

5Y CAGR+10.8pp

10Y CAGR+11.0pp

ALPHABET INC's net profit margin was 32.8% in fiscal year 2025, showing the share of revenue converted to profit. This is up 4.2 percentage points from the prior year.

Return on Equity

31.8%

YoY+1.0pp

5Y CAGR+13.7pp

10Y CAGR+18.2pp

ALPHABET INC's ROE was 31.8% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 1.0 percentage points from the prior year.

Capital Allocation

R&D Spending

$61.1B

YoY+23.8%

5Y CAGR+17.2%

10Y CAGR+17.4%

ALPHABET INC invested $61.1B in research and development in fiscal year 2025. This represents an increase of 23.8% from the prior year.

Share Buybacks

$45.7B

YoY-26.5%

5Y CAGR+8.0%

10Y CAGR+38.3%

ALPHABET INC spent $45.7B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 26.5% from the prior year.

Capital Expenditures

$91.4B

YoY+74.1%

5Y CAGR+32.6%

10Y CAGR+24.8%

ALPHABET INC invested $91.4B in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 74.1% from the prior year.

GOOGM Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$402.8B+15.1%	$350.0B+13.9%	$307.4B+8.7%	$282.8B+9.8%	$257.6B+41.2%	$182.5B
Cost of Revenue	$162.5B+11.1%	$146.3B+9.7%	$133.3B+5.6%	$126.2B+13.8%	$110.9B+30.9%	$84.7B
Gross Profit	$240.3B+18.0%	$203.7B+17.0%	$174.1B+11.1%	$156.6B+6.8%	$146.7B+50.0%	$97.8B
R&D Expenses	$61.1B+23.8%	$49.3B+8.6%	$45.4B+15.0%	$39.5B+25.2%	$31.6B+14.5%	$27.6B
SG&A Expenses	$21.5B+51.4%	$14.2B-13.6%	$16.4B+4.5%	$15.7B+16.4%	$13.5B+22.2%	$11.1B
Operating Income	$129.0B+14.8%	$112.4B+33.3%	$84.3B+12.6%	$74.8B-4.9%	$78.7B+90.9%	$41.2B
Interest Expense	$736.0M+174.6%	$268.0M-13.0%	$308.0M-13.7%	$357.0M+3.2%	$346.0M+156.3%	$135.0M
Income Tax	$26.7B+35.3%	$19.7B+65.2%	$11.9B+5.0%	$11.4B-22.8%	$14.7B+88.2%	$7.8B
Net Income	$132.2B+32.0%	$100.1B+35.7%	$73.8B+23.0%	$60.0B-21.1%	$76.0B+88.8%	$40.3B
EPS (Diluted)	$10.81+34.5%	$8.04+38.6%	$5.80+27.2%	$4.56-18.7%	$5.61	$2.93

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Revenue	$119.8B+9.0%	$109.9B-3.5%	$113.8B+11.2%	$102.3B+6.1%	$96.4B+6.9%	$90.2B-6.5%	$96.5B+9.3%	$88.3B
Cost of Revenue	$45.9B+11.3%	$41.3B-9.8%	$45.8B+10.6%	$41.4B+6.0%	$39.0B+7.4%	$36.4B-10.5%	$40.6B+11.3%	$36.5B
Gross Profit	$73.9B+7.6%	$68.6B+0.8%	$68.1B+11.6%	$61.0B+6.3%	$57.4B+6.5%	$53.9B-3.6%	$55.9B+7.8%	$51.8B
R&D Expenses	$18.2B+7.0%	$17.0B-8.3%	$18.6B+22.6%	$15.2B+9.7%	$13.8B+1.9%	$13.6B+3.4%	$13.1B+5.4%	$12.4B
SG&A Expenses	$6.5B+50.6%	$4.3B-19.7%	$5.3B-27.8%	$7.4B+41.9%	$5.2B+47.2%	$3.5B-19.7%	$4.4B+22.4%	$3.6B
Operating Income	$40.8B+2.7%	$39.7B+10.5%	$35.9B+15.1%	$31.2B-0.1%	$31.3B+2.2%	$30.6B-1.2%	$31.0B+8.6%	$28.5B
Interest Expense	$1.3B+139.8%	$533.0M+78.9%	$298.0M+108.4%	$143.0M-45.2%	$261.0M+667.6%	$34.0M-35.8%	$53.0M-1.9%	$54.0M
Income Tax	$26.6B+79.0%	$14.8B+218.2%	$4.7B-48.2%	$9.0B+57.0%	$5.7B-20.9%	$7.2B+27.0%	$5.7B+5.6%	$5.4B
Net Income	$112.2B+79.3%	$62.6B+81.6%	$34.5B-1.5%	$35.0B+24.1%	$28.2B-18.4%	$34.5B+30.2%	$26.5B+0.9%	$26.3B
EPS (Diluted)	$9.11+78.3%	$5.11	N/A	$2.87+24.2%	$2.31-17.8%	$2.81	N/A	$2.12

GOOGM Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$595.3B+32.2%	$450.3B+11.9%	$402.4B+10.2%	$365.3B+1.7%	$359.3B+12.4%	$319.6B
Current Assets	$206.0B+25.9%	$163.7B-4.6%	$171.5B+4.1%	$164.8B-12.4%	$188.1B+7.9%	$174.3B
Cash & Equivalents	$30.7B+30.9%	$23.5B-2.4%	$24.0B+9.9%	$21.9B+4.5%	$20.9B-20.9%	$26.5B
Inventory	$2.4B	N/A	N/A	$2.7B+128.2%	$1.2B+60.7%	$728.0M
Accounts Receivable	$62.9B+20.1%	$52.3B+9.1%	$48.0B+19.1%	$40.3B+2.4%	$39.3B+27.1%	$30.9B
Goodwill	$33.4B+4.7%	$31.9B+9.2%	$29.2B+0.8%	$29.0B+26.2%	$23.0B+8.4%	$21.2B
Total Liabilities	$180.0B+43.8%	$125.2B+5.2%	$119.0B+9.1%	$109.1B+1.4%	$107.6B+10.9%	$97.1B
Current Liabilities	$102.7B+15.3%	$89.1B+8.9%	$81.8B+18.1%	$69.3B+7.9%	$64.3B+13.1%	$56.8B
Long-Term Debt	$46.5B+327.7%	$10.9B-8.3%	$11.9B-22.5%	$15.3B-0.8%	$15.4B+0.8%	$15.3B
Total Equity	$415.3B+27.7%	$325.1B+14.7%	$283.4B+10.6%	$256.1B+1.8%	$251.6B+13.1%	$222.5B
Retained Earnings	$324.1B+32.2%	$245.1B+16.0%	$211.2B+8.0%	$195.6B+2.1%	$191.5B+17.2%	$163.4B

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Total Assets	$922.0B+31.0%	$703.9B+18.2%	$595.3B+11.0%	$536.5B+6.9%	$502.1B+5.6%	$475.4B+5.6%	$450.3B+4.6%	$430.3B
Current Assets	$343.5B+60.7%	$213.8B+3.7%	$206.0B+18.4%	$173.9B+4.7%	$166.2B+2.6%	$162.1B-1.0%	$163.7B+3.9%	$157.5B
Cash & Equivalents	$55.9B+46.9%	$38.1B+24.0%	$30.7B+33.0%	$23.1B+9.8%	$21.0B-9.6%	$23.3B-0.9%	$23.5B+17.6%	$20.0B
Inventory	$10.0B	N/A	$2.4B	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$69.2B+9.8%	$63.0B+0.2%	$62.9B+10.0%	$57.1B+3.8%	$55.0B+7.9%	$51.0B-2.6%	$52.3B+6.6%	$49.1B
Goodwill	$57.8B+0.1%	$57.8B+73.1%	$33.4B+0.3%	$33.3B+2.9%	$32.3B+0.5%	$32.2B+0.9%	$31.9B-0.2%	$31.9B
Total Liabilities	$281.5B+25.0%	$225.2B+25.1%	$180.0B+20.3%	$149.6B+7.5%	$139.1B+6.9%	$130.1B+3.9%	$125.2B+7.8%	$116.1B
Current Liabilities	$126.1B+13.4%	$111.2B+8.2%	$102.7B+3.2%	$99.5B+14.0%	$87.3B-4.7%	$91.7B+2.8%	$89.1B+10.3%	$80.8B
Long-Term Debt	$98.2B+26.7%	$77.5B+66.5%	$46.5B+115.4%	$21.6B-8.5%	$23.6B+116.9%	$10.9B0.0%	$10.9B-11.5%	$12.3B
Total Equity	$640.5B+33.8%	$478.7B+15.3%	$415.3B+7.3%	$386.9B+6.6%	$362.9B+5.1%	$345.3B+6.2%	$325.1B+3.5%	$314.1B
Retained Earnings	$493.4B+28.5%	$384.0B+18.5%	$324.1B+9.0%	$297.2B+7.8%	$275.8B+5.0%	$262.6B+7.2%	$245.1B+4.2%	$235.3B

GOOGM Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$164.7B+31.5%	$125.3B+23.1%	$101.7B+11.2%	$91.5B-0.2%	$91.7B+40.7%	$65.1B
Capital Expenditures	$91.4B+74.1%	$52.5B+62.9%	$32.3B+2.4%	$31.5B+27.8%	$24.6B+10.6%	$22.3B
Free Cash Flow	$73.3B+0.7%	$72.8B+4.7%	$69.5B+15.8%	$60.0B-10.4%	$67.0B+56.4%	$42.8B
Investing Cash Flow	-$120.3B-164.2%	-$45.5B-68.3%	-$27.1B-33.3%	-$20.3B+42.9%	-$35.5B-8.4%	-$32.8B
Financing Cash Flow	-$37.4B+53.1%	-$79.7B-10.6%	-$72.1B-3.3%	-$69.8B-13.7%	-$61.4B-151.4%	-$24.4B
Dividends Paid	$10.0B+36.5%	$7.4B	$0	$0	N/A	N/A
Share Buybacks	$45.7B-26.5%	$62.2B+1.2%	$61.5B+3.7%	$59.3B+17.9%	$50.3B+61.4%	$31.1B

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Operating Cash Flow	$39.1B-14.7%	$45.8B-12.6%	$52.4B+8.2%	$48.4B+74.5%	$27.7B-23.2%	$36.1B-7.6%	$39.1B+27.4%	$30.7B
Capital Expenditures	$44.9B+25.9%	$35.7B+28.1%	$27.9B+16.3%	$24.0B+6.7%	$22.4B+30.5%	$17.2B+20.5%	$14.3B+9.3%	$13.1B
Free Cash Flow	-$5.9B-157.9%	$10.1B-58.8%	$24.6B+0.4%	$24.5B+361.4%	$5.3B-72.0%	$19.0B-23.7%	$24.8B+40.8%	$17.6B
Investing Cash Flow	-$82.4B-30.0%	-$63.4B-22.4%	-$51.8B-86.4%	-$27.8B-13.2%	-$24.5B-51.6%	-$16.2B-0.1%	-$16.2B+10.2%	-$18.0B
Financing Cash Flow	$61.2B+144.2%	$25.1B+256.8%	$7.0B+138.2%	-$18.4B-215.2%	-$5.8B+71.1%	-$20.2B-6.1%	-$19.0B+5.3%	-$20.1B
Dividends Paid	N/A	$2.5B+0.2%	$2.5B0.0%	$2.5B-0.3%	$2.5B+4.5%	$2.4B-0.3%	$2.4B-0.5%	$2.5B
Share Buybacks	$0	$0-100.0%	$5.5B-53.8%	$11.9B-10.1%	$13.2B-12.1%	$15.1B-3.1%	$15.6B+1.7%	$15.3B

GOOGM Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	59.7%+1.5pp	58.2%+1.6pp	56.6%+1.3pp	55.4%-1.6pp	56.9%+3.4pp	53.6%
Operating Margin	32.0%-0.1pp	32.1%+4.7pp	27.4%+1.0pp	26.5%-4.1pp	30.6%+8.0pp	22.6%
Net Margin	32.8%+4.2pp	28.6%+4.6pp	24.0%+2.8pp	21.2%-8.3pp	29.5%+7.4pp	22.1%
Return on Equity	31.8%+1.0pp	30.8%+4.8pp	26.0%+2.6pp	23.4%-6.8pp	30.2%+12.1pp	18.1%
Return on Assets	22.2%-0.0pp	22.2%+3.9pp	18.3%+1.9pp	16.4%-4.7pp	21.2%+8.6pp	12.6%
Current Ratio	2.01+0.2	1.84-0.3	2.10-0.3	2.38-0.6	2.93-0.1	3.07
Debt-to-Equity	0.11+0.1	0.030.0	0.04-0.0	0.060.0	0.060.0	0.07
FCF Margin	18.2%-2.6pp	20.8%-1.8pp	22.6%+1.4pp	21.2%-4.8pp	26.0%+2.5pp	23.5%

Metric	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25	Q4'24	Q3'24
Gross Margin	61.7%-0.8pp	62.5%+2.7pp	59.8%+0.2pp	59.6%+0.1pp	59.5%-0.2pp	59.7%+1.8pp	57.9%-0.8pp	58.7%
Operating Margin	34.0%-2.1pp	36.1%+4.6pp	31.6%+1.1pp	30.5%-1.9pp	32.4%-1.5pp	33.9%+1.8pp	32.1%-0.2pp	32.3%
Net Margin	93.7%+36.7pp	56.9%+26.7pp	30.3%-3.9pp	34.2%+4.9pp	29.2%-9.0pp	38.3%+10.8pp	27.5%-2.3pp	29.8%
Return on Equity	17.5%+4.4pp	13.1%+4.8pp	8.3%-0.7pp	9.0%+1.3pp	7.8%-2.2pp	10.0%+1.8pp	8.2%-0.2pp	8.4%
Return on Assets	12.2%+3.3pp	8.9%+3.1pp	5.8%-0.7pp	6.5%+0.9pp	5.6%-1.7pp	7.3%+1.4pp	5.9%-0.2pp	6.1%
Current Ratio	2.72+0.8	1.92-0.1	2.01+0.3	1.75-0.2	1.90+0.1	1.77-0.1	1.84-0.1	1.95
Debt-to-Equity	0.150.0	0.16+0.0	0.11+0.1	0.060.0	0.07+0.0	0.030.0	0.030.0	0.04
FCF Margin	-4.9%-14.1pp	9.2%-12.4pp	21.6%-2.3pp	23.9%+18.4pp	5.5%-15.5pp	21.0%-4.8pp	25.8%+5.8pp	20.0%

Frequently Asked Questions

What is ALPHABET INC's annual revenue?

ALPHABET INC (GOOGM) 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 (GOOGM) 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 (GOOGM) 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 (GOOGM) 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 (GOOGM) had $30.7B in cash and equivalents against $46.5B in long-term debt.

What is ALPHABET INC's gross margin?

ALPHABET INC (GOOGM) 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 (GOOGM) 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 (GOOGM) 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 (GOOGM) paid $0.83 per share in dividends during fiscal year 2025.

What is ALPHABET INC's return on equity (ROE)?

ALPHABET INC (GOOGM) 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 (GOOGM) 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 (GOOGM) 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 (GOOGM) 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 (GOOGM) 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 (GOOGM) invested $61.1B in research and development during fiscal year 2025.

Does ALPHABET INC buy back shares?

Yes, ALPHABET INC (GOOGM) spent $45.7B on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does ALPHABET INC have outstanding?

ALPHABET INC (GOOGM) had 12.09B shares outstanding as of fiscal year 2025.

What is ALPHABET INC's current ratio?

ALPHABET INC (GOOGM) 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 (GOOGM) 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 (GOOGM) 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 Piotroski F-Score?

ALPHABET INC (GOOGM) 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 (GOOGM) 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 (GOOGM) has an interest coverage ratio of 175.3x, 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.