Alphabet Inc., balance sheet: debt

US$ in millions

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Current portion of long-term notes	1,000)	—)	—)	999)	—)
Current portion of future finance lease payments, net and other current debt	363)	298)	113)	101)	115)
Long-term debt, excluding current portion	13,253)	14,701)	14,817)	13,932)	4,554)
Total debt (carrying amount)	14,616)	14,999)	14,930)	15,032)	4,669)

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Debt item	Description	The company
Total debt (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Alphabet Inc. total debt increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.

	Dec 31, 2023
Selected Financial Data (US$ in millions)
Outstanding notes, including current portion	10,300)
Future finance lease payments, net and other	1,746)
Total debt (fair value)	12,046)
Financial Ratio
Debt, fair value to carrying amount ratio	0.82

Weighted-average effective interest rate: 3.38%

Interest rate	Debt amount¹	Interest rate × Debt amount
3.38%	13,000)	439)
Total	13,000)	439)
3.38%

¹ US$ in millions

² Weighted-average interest rate = 100 × 439 ÷ 13,000 = 3.38%

Alphabet Inc., interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Interest expense	308)	357)	346)	135)	100)
Interest capitalized	181)	128)	163)	218)	167)
Interest costs incurred	489)	485)	509)	353)	267)

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Debt item	Description	The company
Interest expense	Amount of the cost of borrowed funds accounted for as interest expense for debt.	Alphabet Inc. interest expense increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Alphabet Inc. interest capitalized decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Alphabet Inc. interest costs incurred decreased from 2021 to 2022 but then slightly increased from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Selected Financial Data (US$ in millions)
Net income	73,795)	59,972)	76,033)	40,269)	34,343)
Add: Income tax expense	11,922)	11,356)	14,701)	7,813)	5,282)
Add: Interest expense	308)	357)	346)	135)	100)
Earnings before interest and tax (EBIT)	86,025)	71,685)	91,080)	48,217)	39,725)

Interest costs incurred	489)	485)	509)	353)	267)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	279.30	200.80	263.24	357.16	397.25
Adjusted interest coverage ratio (with capitalized interest)²	175.92	147.80	178.94	136.59	148.78

2023 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 86,025 ÷ 308 = 279.30

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 86,025 ÷ 489 = 175.92

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Solvency ratio	Description	The company
Adjusted interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest).	Alphabet Inc. adjusted interest coverage ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Alphabet Inc. (NASDAQ:GOOG)

Analysis of Debt