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Alphabet(Google) Interest Coverage

: 234.37 (As of Jun. 2022)
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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 Jun. 2022 was $19,453 Mil. Alphabet(Google)'s Interest Expense for the three months ended in Jun. 2022 was $-83 Mil. Alphabet(Google)'s interest coverage for the quarter that ended in Jun. 2022 was 234.37. 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: 162.75   Med: 209.38   Max: 359.28
Current: 229.06


GOOGL's Interest Coverage is ranked better than
66.27% of 338 companies
in the Interactive Media industry
Industry Median: 64.36 vs GOOGL: 229.06

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.

* Premium members only.

Alphabet(Google) Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 265.27 285.92 359.28 305.36 227.50

Alphabet(Google) Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 254.75 273.13 187.05 242.10 234.37

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.


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. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Alphabet(Google)'s Interest Expense was $-346 Mil. Its Operating Income was $78,714 Mil. And its Long-Term Debt & Capital Lease Obligation was $26,206 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*78714/-346
=227.50

Alphabet(Google)'s Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Alphabet(Google)'s Interest Expense was $-83 Mil. Its Operating Income was $19,453 Mil. And its Long-Term Debt & Capital Lease Obligation was $26,431 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*19453/-83
=234.37

* 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.

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) Business Description

Alphabet(Google) logo
Address
1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043
Alphabet Inc is a holding company, with Google, the Internet media giant, as 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 homes 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), faster Internet access to homes (Google Fiber), self-driving cars (Waymo), and more. Alphabet's operating margin has been 25%-30%, with Google at 30% and other bets operating at a loss.
Executives
Schindler Philipp officer: SVP, Chief Business Officer C/O ALPHABET INC. 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94568
Walker John Kent officer: SVP, Global Affairs and CLO 1600 AMPHITHEATRE PRKW MOUNTAIN VIEW CA 94043
Raghavan Prabhakar officer: Senior Vice President C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043
Arnold Frances director 5200 ILLUMINA WAY SAN DIEGO CA 92122
Washington Robin L director 333 LAKESIDE DRIVE FOSTER CITY CA 94404
O'toole Amie Thuener officer: VP, Chief Accounting Officer C/O ALPHABET INC. 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043
Lee Antonio 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
Campbell James Grier officer: VP, Alphabet Corp. Controller 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043
Hennessy John L director
Mulally Alan R director P.O. BOX 995 MERCER ISLAND WA 98040
Shriram Kavitark Ram director 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Mather Ann director
Tilghman Shirley M director GOOGLE INC. 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Otellini Paul S director 2200 MISSION COLLEGE BLVD RNB-4-151 SANTA CLARA CA 95054

Alphabet(Google) Headlines

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