Alphabet Inc., balance sheet: debt

US$ in millions

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Current portion of finance lease liabilities	235)	—)	—)	—)	—)
Short-term debt	3,299)	1,363)	298)	113)	1,100)
Long-term debt, excluding current portion	10,883)	13,253)	14,701)	14,817)	13,932)
Long-term portion of finance lease liabilities	1,442)	—)	—)	—)	—)
Total debt and finance lease liabilities (carrying amount)	15,859)	14,616)	14,999)	14,930)	15,032)

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Debt item	Description	The company
Total debt and finance lease liabilities (carrying amount)	Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations.	Alphabet Inc. total debt decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024
Selected Financial Data (US$ in millions)
Commercial paper	2,300)
Outstanding notes, including current portion	9,000)
Other debt	—)
Finance lease liabilities	1,677)
Total debt and finance lease liabilities (fair value)	12,977)
Financial Ratio
Debt, fair value to carrying amount ratio	0.82

Weighted-average effective interest rate on debt and finance lease liabilities: 2.71%

Interest rate	Debt amount¹	Interest rate × Debt amount
4.40%	2,300)	101)
3.38%	1,000)	34)
2.23%	2,000)	45)
2.33%	10,000)	233)
2.80%	1,677)	47)
Total	16,977)	460)
2.71%

¹ US$ in millions

² Weighted-average interest rate = 100 × 460 ÷ 16,977 = 2.71%

Alphabet Inc., interest costs incurred

US$ in millions

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Interest expense	268)	308)	357)	346)	135)
Interest capitalized	194)	181)	128)	163)	218)
Interest costs incurred	462)	489)	485)	509)	353)

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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 decreased from 2022 to 2023 and from 2023 to 2024.
Interest capitalized	Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred.	Alphabet Inc. interest capitalized increased from 2022 to 2023 and from 2023 to 2024.
Interest costs incurred	Total interest costs incurred during the period and either capitalized or charged against earnings.	Alphabet Inc. interest costs incurred increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Selected Financial Data (US$ in millions)
Net income	100,118)	73,795)	59,972)	76,033)	40,269)
Add: Income tax expense	19,697)	11,922)	11,356)	14,701)	7,813)
Add: Interest expense	268)	308)	357)	346)	135)
Earnings before interest and tax (EBIT)	120,083)	86,025)	71,685)	91,080)	48,217)

Interest costs incurred	462)	489)	485)	509)	353)
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)¹	448.07	279.30	200.80	263.24	357.16
Adjusted interest coverage ratio (with capitalized interest)²	259.92	175.92	147.80	178.94	136.59

2024 Calculations

¹ Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 120,083 ÷ 268 = 448.07

² Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 120,083 ÷ 462 = 259.92

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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 improved from 2022 to 2023 and from 2023 to 2024.

Alphabet Inc. (NASDAQ:GOOG)

Analysis of Debt