Alphabet(Google) (GOOGL) Interest Coverage

: 343.43 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Alphabet(Google)'s Operating Income for the three months ended in Dec. 2023 was $23,697 Mil. Alphabet(Google)'s Interest Expense for the three months ended in Dec. 2023 was $-69 Mil. Alphabet(Google)'s interest coverage for the quarter that ended in Dec. 2023 was 343.43. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Alphabet Inc has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Alphabet(Google)'s Interest Coverage or its related term are showing as below:

GOOGL' s Interest Coverage Range Over the Past 10 Years
Min: 163.33 Med: 246.39 Max: 359.28
Current: 273.68

GOOGL's Interest Coverage is ranked better than
72.38% of 315 companies
in the Interactive Media industry
Industry Median: 34.85 vs GOOGL: 273.68

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Alphabet(Google) Interest Coverage Historical Data

The historical data trend for Alphabet(Google)'s Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Alphabet(Google) Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

359.28

305.36

227.50

209.64

273.68

Alphabet(Google) Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																201.78	217.69	507.86	183.99	343.43

Competitive Comparison

For the Internet Content & Information subindustry, Alphabet(Google)'s Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Alphabet(Google) Interest Coverage Distribution

For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s Interest Coverage distribution charts can be found below:

* The bar in red indicates where Alphabet(Google)'s Interest Coverage falls into.

Alphabet(Google) Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Alphabet(Google)'s Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Alphabet(Google)'s Interest Expense was $-308 Mil. Its Operating Income was $84,293 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,713 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	84293	/	-308
	=	273.68

Alphabet(Google)'s Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Alphabet(Google)'s Interest Expense was $-69 Mil. Its Operating Income was $23,697 Mil. And its Long-Term Debt & Capital Lease Obligation was $25,713 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	23697	/	-69
	=	343.43

The higher the ratio, the stronger the company's Financial Strength is.

Alphabet(Google) (NAS:GOOGL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Alphabet(Google) Interest Coverage Related Terms

Thank you for viewing the detailed overview of Alphabet(Google)'s Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Alphabet(Google) (GOOGL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Alphabet Inc(Google) (NAS:GOOGL) » Definitions » Interest Coverage

Comparable Companies

Address

1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043

Website

https://www.abc.xyz

Alphabet is a holding company. Internet media giant Google is a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart home products, which include Nest and Google Home, also contribute to other revenue. Alphabet's moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), provide faster internet access (Google Fiber), enable self-driving cars (Waymo), and more.

Executives

R. Martin Chavez	director	C/O GOLDMAN SACHS & CO. LLC, 200 WEST STREET, NEW YORK NY 10282
Prabhakar Raghavan	officer: Senior Vice President	C/O ALPHABET INC.,, 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
Philipp Schindler	officer: SVP, Chief Business Officer	C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94568
John Kent Walker	officer: SVP, Global Affairs and CLO	1600 AMPHITHEATRE PRKW, MOUNTAIN VIEW CA 94043
Frances Arnold	director	5200 ILLUMINA WAY, SAN DIEGO CA 92122
Robin L Washington	director	333 LAKESIDE DRIVE, FOSTER CITY CA 94404
Amie Thuener O'toole	officer: VP, Chief Accounting Officer	C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
Antonio Lee	10 percent owner, other: Investor/Large Shareholder	4009 216TH STREET, MATTESON IL 60443
Ferguson Roger W. Jr.	director	CORNING INCORPORATED, ONE RIVERFRONT PLAZA, CORNING NY 14831
James Grier Campbell	officer: VP, Alphabet Corp. Controller	1600 AMPHITHEATRE PKWY, MOUNTAIN VIEW CA 94043
John L Hennessy	director
Kavitark Ram Shriram	director	1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043
Alan R Mulally	director	P.O. BOX 995, MERCER ISLAND WA 98040
Ann Mather	director
Shirley M Tilghman	director	GOOGLE INC., 1600 AMPHITHEATRE PARKWAY, MOUNTAIN VIEW CA 94043