Alphabet Inc. Financials Many people do not know who Alphabet Inc. is, which is surprising seeing how they are the parent entity of Google as of October 2015. They also have other subsidiary companies under them such as Firebase, Sidewalk Labs, Jigsaw, Google Capital, and the list continues. This company offers services such as search, advertising, and enterprise products through Google. In addition to Google services they offer services like smoke detectors, security systems, and other services through the other business. After collecting data about Alphabet Inc. financial statements they are defiantly improving overtime. The information provided by the U.S. Securities & Exchange Commission reflects to time periods, as of December 31, 2015 …show more content…
Securities & Exchange Commission Alphabet Inc.’s current ratio as of June 30, 2016 is 5.84, raising from the 5.43 that is was as of December 31, 2015. Keeping in mind the numbers for their assets, equity, and liability are millions, the total assets for December were $147,461 and increased by June to $154,292. With that increasing the liability actually decreased, starting in December with $27,130 and lowering to $26,413 in June. A high current ratio such as Alphabet Inc.’s, “indicates that the business has sufficient assets to maintain normal business operations” (Miller-Nobles, Mattison, & Matsumura, 2016, pg.888). Alphabet Inc.’s financial statements show that they are at good standing to pay back any short term debts, which is a positive aspect that investors and creditors look at in companies. Alphabet Inc.’s cash and cash equivalents for December were $16,549 and in June were $13,627, divide that by their liabilities, December’s was $27,130 and June was $26,413. The company’s cash ratio for December is 0.60 and for June was 0.52. This shows the company does not have too much cash supply on …show more content…
The numbers increase and decrease of time with the current percentage being 14.99% June 30, 2016. That is an increase from the percentage of 14.11% as of December 31, 2015, which had dropped from 14.45% 2 months before. In the last 10 years though the highest percentage was more than double the current percentage, sitting at 34.98% in June 2005. “A rate of return on common stockholder’s equity of 15% to 20% year after year is considered good in most industries” (Miller-Nobles, Mattison, & Matsumura, 2016, pg.896). At 14.99% they are doing good, right at the line of doing