Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Alphabet Inc., solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency position, as indicated by the provided ratios, demonstrates a generally stable profile with a slight increase in leverage towards the end of the observed period. Throughout much of the period from March 31, 2022, through December 31, 2024, the ratios exhibit a trend of gradual decrease, suggesting a strengthening solvency position. However, the final quarters show a reversal of this trend, with most ratios increasing.
- Debt to Equity
- The debt to equity ratio remained consistently low, fluctuating between 0.05 and 0.06 for the majority of the period. A noticeable decrease is observed from 0.06 to 0.03 between March 31, 2022, and December 31, 2024. However, this ratio increased to 0.07 in June 2025 and further to 0.11 in December 2025, indicating increased reliance on equity financing.
- Debt to Equity (Including Operating Lease Liability)
- Similar to the standard debt to equity ratio, this metric also showed a decreasing trend from 0.11 to 0.07 between September 30, 2022, and December 31, 2024. The subsequent quarters reveal an upward trend, reaching 0.14 by December 31, 2025, suggesting a growing impact of operating lease obligations on the company’s capital structure.
- Debt to Capital
- The debt to capital ratio mirrors the trends observed in the debt to equity ratios. It decreased from 0.06 in March 2022 to 0.03 in December 2024, before rising to 0.10 in December 2025. This indicates a shift in the capital structure towards greater debt financing in the latter part of the period.
- Debt to Capital (Including Operating Lease Liability)
- This ratio followed a similar pattern to the debt to capital ratio, decreasing from 0.10 to 0.06 between March 2022 and December 2024, and then increasing to 0.12 by December 2025. The inclusion of operating lease liabilities amplifies the observed changes in leverage.
- Debt to Assets
- The debt to assets ratio exhibited a consistent decline from 0.04 to 0.02 between March 2022 and December 2024. A subsequent increase to 0.08 by December 2025 suggests a growing proportion of assets financed by debt.
- Debt to Assets (Including Operating Lease Liability)
- This ratio demonstrated a similar trend to the standard debt to assets ratio, decreasing from 0.07 to 0.05 between March 2022 and December 2024, and then increasing to 0.10 by December 2025. The inclusion of operating lease liabilities contributes to the observed increase in leverage.
- Financial Leverage
- Financial leverage remained relatively stable between 1.38 and 1.45 throughout the period. A slight increase is observed in the final quarter, reaching 1.43 in December 2025, indicating a moderate increase in the use of financial leverage.
In summary, the company maintained a conservative solvency position for most of the analyzed period. However, the latter quarters show a clear trend of increasing leverage across all measured ratios, potentially indicating a strategic shift in financing or increased investment in debt-funded projects.
Debt Ratios
Debt to Equity
Alphabet Inc., debt to equity calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Long-term debt, excluding current portion | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Total debt | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Stockholders’ equity | 415,265) | 386,867) | 362,916) | 345,267) | 325,084) | 314,119) | 300,753) | 292,844) | 283,379) | 273,202) | 267,141) | 260,894) | 256,144) | 253,626) | 255,419) | 254,004) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity1 | 0.11 | 0.06 | 0.07 | 0.03 | 0.03 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.06 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||
| Comcast Corp. | 1.02 | 1.02 | 1.05 | 1.14 | 1.16 | 1.18 | 1.18 | 1.17 | 1.17 | 1.18 | 1.16 | 1.16 | 1.17 | 1.15 | 1.02 | 1.00 | |||||
| Meta Platforms Inc. | 0.27 | 0.15 | 0.15 | 0.16 | 0.16 | 0.18 | 0.12 | 0.12 | 0.12 | 0.13 | 0.14 | 0.08 | 0.08 | 0.08 | 0.00 | 0.00 | |||||
| Netflix Inc. | 0.54 | 0.56 | 0.58 | 0.62 | 0.63 | 0.70 | 0.63 | 0.66 | 0.71 | 0.65 | 0.63 | 0.66 | 0.69 | 0.68 | 0.75 | 0.83 | |||||
| Trade Desk Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Walt Disney Co. | 0.38 | 0.39 | 0.41 | 0.44 | 0.45 | 0.47 | 0.47 | 0.47 | 0.47 | 0.48 | 0.50 | 0.50 | 0.51 | 0.56 | 0.57 | 0.60 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 46,547 ÷ 415,265 = 0.11
2 Click competitor name to see calculations.
The debt to equity ratio for the analyzed period demonstrates a generally decreasing trend, punctuated by a significant increase in later periods. Initially, the ratio remained stable, then exhibited a notable shift towards the end of the observed timeframe.
- Initial Stability (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, through December 31, 2022, the debt to equity ratio consistently registered at 0.06. This indicates a stable capital structure during this period, with a consistent relationship between the company’s debt obligations and shareholder equity.
- Gradual Decline (Mar 31, 2023 – Dec 31, 2024)
- A gradual decline in the debt to equity ratio is observed from March 31, 2023, to December 31, 2024. The ratio decreased from 0.05 to 0.03, suggesting a strengthening financial position with a decreasing reliance on debt financing relative to equity. This could be attributed to increased profitability, equity issuance, or debt reduction strategies.
- Significant Increase (Mar 31, 2025 – Dec 31, 2025)
- A substantial increase in the debt to equity ratio is evident from March 31, 2025, culminating in a ratio of 0.11 by December 31, 2025. The ratio moved from 0.03 to 0.07 in the first half of 2025, and then to 0.11 in the second half. This suggests a significant increase in debt levels, potentially due to acquisitions, large capital expenditures, or other financing activities. The increase warrants further investigation to understand the underlying reasons and potential implications for the company’s financial risk.
Overall, the trend indicates a period of financial stability and strengthening, followed by a marked shift towards increased leverage in the most recent periods. The substantial rise in the debt to equity ratio at the end of the analyzed timeframe represents a notable change in the company’s capital structure and requires further scrutiny.
Debt to Equity (including Operating Lease Liability)
Alphabet Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Long-term debt, excluding current portion | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Total debt | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Long-term operating lease liabilities | 12,744) | 12,106) | 11,952) | 11,678) | 11,691) | 11,654) | 11,708) | 11,957) | 12,460) | 12,550) | 12,746) | 12,799) | 12,501) | 11,984) | 11,697) | 11,363) | |||||
| Total debt (including operating lease liability) | 59,291) | 33,713) | 35,559) | 22,564) | 22,574) | 23,951) | 24,946) | 25,185) | 25,713) | 26,331) | 26,451) | 26,496) | 27,202) | 26,637) | 26,431) | 26,154) | |||||
| Stockholders’ equity | 415,265) | 386,867) | 362,916) | 345,267) | 325,084) | 314,119) | 300,753) | 292,844) | 283,379) | 273,202) | 267,141) | 260,894) | 256,144) | 253,626) | 255,419) | 254,004) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 0.14 | 0.09 | 0.10 | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.10 | 0.10 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| Meta Platforms Inc. | 0.39 | 0.26 | 0.25 | 0.27 | 0.27 | 0.30 | 0.24 | 0.25 | 0.24 | 0.25 | 0.27 | 0.22 | 0.21 | 0.21 | 0.13 | 0.11 | |||||
| Trade Desk Inc. | — | 0.14 | 0.13 | 0.12 | 0.11 | 0.11 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.13 | 0.12 | 0.14 | 0.15 | 0.17 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 59,291 ÷ 415,265 = 0.14
2 Click competitor name to see calculations.
The debt to equity ratio, including operating lease liability, for the analyzed period demonstrates a generally decreasing trend, punctuated by a significant increase in the latter quarters. Initially, the ratio remained stable at 0.10 from March 31, 2022, through June 30, 2023. A slight increase to 0.11 was observed in September and December of 2022, before returning to 0.10 for the first half of 2023. Subsequently, the ratio declined steadily to 0.07 by December 31, 2024, indicating a strengthening equity position relative to debt. However, a substantial increase is evident in the final quarters, reaching 0.14 by December 31, 2025.
- Total Debt Trend
- Total debt, inclusive of operating lease liabilities, initially exhibited a modest increasing trend from US$26,154 million in March 2022 to US$27,202 million by December 2022. Following this, a decrease was observed, with debt levels falling to US$25,185 million by March 2024. This downward trend continued until September 2024, reaching US$23,951 million. A significant increase in debt is then apparent, escalating to US$59,291 million by December 2025.
- Stockholders’ Equity Trend
- Stockholders’ equity demonstrated a consistent upward trajectory throughout the majority of the analyzed period. Starting at US$254,004 million in March 2022, equity grew to US$283,379 million by December 2022. This growth continued, reaching US$325,084 million by December 2024, and further increasing to US$415,265 million by December 2025. The consistent growth in equity contributed to the initial decline in the debt to equity ratio.
- Debt to Equity Ratio – Recent Developments
- The recent increase in the debt to equity ratio, particularly from September 2024 onwards, is primarily driven by the substantial rise in total debt, while equity continues to grow, but at a slower pace than the debt increase. This shift suggests a potential change in the company’s capital structure strategy or financing activities. The ratio’s movement from 0.08 in June 2024 to 0.14 in December 2025 warrants further investigation to understand the underlying reasons for the increased leverage.
Overall, the solvency position appeared to strengthen through most of the analyzed period, as indicated by the declining debt to equity ratio. However, the recent surge in debt levels has reversed this trend, raising questions about the company’s future financial flexibility and risk profile.
Debt to Capital
Alphabet Inc., debt to capital calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Long-term debt, excluding current portion | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Total debt | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Stockholders’ equity | 415,265) | 386,867) | 362,916) | 345,267) | 325,084) | 314,119) | 300,753) | 292,844) | 283,379) | 273,202) | 267,141) | 260,894) | 256,144) | 253,626) | 255,419) | 254,004) | |||||
| Total capital | 461,812) | 408,474) | 386,523) | 356,153) | 335,967) | 326,416) | 313,991) | 306,072) | 296,632) | 286,983) | 280,846) | 274,591) | 270,845) | 268,279) | 270,153) | 268,795) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital1 | 0.10 | 0.05 | 0.06 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||
| Comcast Corp. | 0.51 | 0.51 | 0.51 | 0.53 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.54 | 0.51 | 0.50 | |||||
| Meta Platforms Inc. | 0.21 | 0.13 | 0.13 | 0.13 | 0.14 | 0.15 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.07 | 0.07 | 0.07 | 0.00 | 0.00 | |||||
| Netflix Inc. | 0.35 | 0.36 | 0.37 | 0.38 | 0.39 | 0.41 | 0.39 | 0.40 | 0.41 | 0.39 | 0.39 | 0.40 | 0.41 | 0.40 | 0.43 | 0.45 | |||||
| Trade Desk Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Walt Disney Co. | 0.28 | 0.28 | 0.29 | 0.31 | 0.31 | 0.32 | 0.32 | 0.32 | 0.32 | 0.33 | 0.33 | 0.33 | 0.34 | 0.36 | 0.36 | 0.38 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 46,547 ÷ 461,812 = 0.10
2 Click competitor name to see calculations.
The debt to capital ratio for the analyzed period demonstrates a generally stable profile with a notable increase in the most recent reporting periods. Throughout much of the observed timeframe, the ratio remained consistently low, indicating a conservative capital structure.
- Overall Trend
- From March 31, 2022, through December 31, 2023, the debt to capital ratio fluctuated between 0.04 and 0.06, remaining relatively stable. A slight downward trend was observed from 2022 to 2023, with the ratio reaching a low of 0.03 in the first quarter of 2024. However, beginning in March 2025, a significant upward trend emerged.
- Recent Developments
- The ratio experienced a substantial increase in the first half of 2025, rising from 0.03 in March 2025 to 0.06 in June 2025. This trend continued into the latter half of the year, culminating in a ratio of 0.10 by December 31, 2025. This represents the highest level observed throughout the entire analyzed period.
- Debt and Capital Components
- Total debt decreased consistently from US$14,791 million in March 2022 to US$10,883 million in December 2023. However, it then increased significantly, reaching US$46,547 million by December 2025. Total capital exhibited a consistent upward trend throughout the period, increasing from US$268,795 million in March 2022 to US$461,812 million in December 2025. The substantial increase in debt, coupled with the continued growth in capital, drove the observed increase in the debt to capital ratio in the latter part of the period.
- Implications
- The historically low debt to capital ratio suggests a strong financial position with limited reliance on debt financing. The recent increase warrants further investigation to determine the reasons behind the increased debt levels and potential implications for future financial flexibility and risk.
Debt to Capital (including Operating Lease Liability)
Alphabet Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Long-term debt, excluding current portion | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Total debt | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Long-term operating lease liabilities | 12,744) | 12,106) | 11,952) | 11,678) | 11,691) | 11,654) | 11,708) | 11,957) | 12,460) | 12,550) | 12,746) | 12,799) | 12,501) | 11,984) | 11,697) | 11,363) | |||||
| Total debt (including operating lease liability) | 59,291) | 33,713) | 35,559) | 22,564) | 22,574) | 23,951) | 24,946) | 25,185) | 25,713) | 26,331) | 26,451) | 26,496) | 27,202) | 26,637) | 26,431) | 26,154) | |||||
| Stockholders’ equity | 415,265) | 386,867) | 362,916) | 345,267) | 325,084) | 314,119) | 300,753) | 292,844) | 283,379) | 273,202) | 267,141) | 260,894) | 256,144) | 253,626) | 255,419) | 254,004) | |||||
| Total capital (including operating lease liability) | 474,556) | 420,580) | 398,475) | 367,831) | 347,658) | 338,070) | 325,699) | 318,029) | 309,092) | 299,533) | 293,592) | 287,390) | 283,346) | 280,263) | 281,850) | 280,158) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.12 | 0.08 | 0.09 | 0.06 | 0.06 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.09 | 0.09 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| Meta Platforms Inc. | 0.28 | 0.21 | 0.20 | 0.21 | 0.21 | 0.23 | 0.20 | 0.20 | 0.20 | 0.20 | 0.21 | 0.18 | 0.17 | 0.17 | 0.11 | 0.10 | |||||
| Trade Desk Inc. | — | 0.13 | 0.11 | 0.11 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.10 | 0.11 | 0.12 | 0.11 | 0.12 | 0.13 | 0.14 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 59,291 ÷ 474,556 = 0.12
2 Click competitor name to see calculations.
The Debt to Capital ratio, including operating lease liability, demonstrates a generally decreasing trend over the observed period, with a notable increase in the most recent quarters. Initially, the ratio remained stable at 0.09 from March 31, 2022, through June 30, 2023. A slight decline to 0.08 was then observed through December 31, 2023, continuing to 0.07 and 0.06 in the subsequent two quarters. However, beginning with March 31, 2025, the ratio exhibits a significant upward movement, reaching 0.12 by December 31, 2025.
- Total Debt (including operating lease liability)
- Total debt remained relatively consistent between approximately US$26 billion and US$27 billion from March 31, 2022, to December 31, 2023. A decrease is then observed, falling to US$22.574 billion by December 31, 2024. A substantial increase is then recorded, rising to US$35.559 billion by March 31, 2025, and further increasing to US$59.291 billion by December 31, 2025.
- Total Capital (including operating lease liability)
- Total capital consistently increased throughout the period, starting at US$280.158 billion on March 31, 2022, and reaching US$474.556 billion by December 31, 2025. The rate of increase appears to accelerate in the later quarters, particularly between September 30, 2024, and December 31, 2025.
The initial stability and subsequent decline in the Debt to Capital ratio suggest a strengthening financial position with decreasing reliance on debt financing relative to capital. However, the recent and substantial increase in the ratio, driven primarily by a significant rise in total debt, indicates a shift in the company’s capital structure and a potentially increased financial risk profile. The continued growth in total capital does not fully offset the impact of the increased debt, resulting in the observed ratio increase.
The substantial increase in debt during the final quarters warrants further investigation to understand the underlying reasons, such as potential acquisitions, significant investments, or changes in financing strategies. The trend suggests a potential change in the company’s approach to capital allocation and risk management.
Debt to Assets
Alphabet Inc., debt to assets calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Long-term debt, excluding current portion | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Total debt | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Total assets | 595,281) | 536,469) | 502,053) | 475,374) | 450,256) | 430,266) | 414,770) | 407,350) | 402,392) | 396,711) | 383,044) | 369,491) | 365,264) | 358,255) | 355,185) | 357,096) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets1 | 0.08 | 0.04 | 0.05 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||
| Comcast Corp. | 0.36 | 0.36 | 0.37 | 0.37 | 0.37 | 0.38 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.37 | 0.36 | 0.35 | 0.35 | |||||
| Meta Platforms Inc. | 0.16 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.05 | 0.05 | 0.06 | 0.00 | 0.00 | |||||
| Netflix Inc. | 0.26 | 0.26 | 0.27 | 0.29 | 0.29 | 0.31 | 0.28 | 0.29 | 0.30 | 0.29 | 0.28 | 0.29 | 0.30 | 0.29 | 0.31 | 0.32 | |||||
| Trade Desk Inc. | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Walt Disney Co. | 0.21 | 0.21 | 0.22 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.23 | 0.23 | 0.24 | 0.24 | 0.24 | 0.25 | 0.26 | 0.27 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 46,547 ÷ 595,281 = 0.08
2 Click competitor name to see calculations.
The debt-to-assets ratio for the analyzed period demonstrates a generally decreasing trend, indicating a strengthening solvency position. Throughout much of the observed timeframe, the ratio remained relatively stable before experiencing a more pronounced shift in later periods.
- Overall Trend
- The ratio began at 0.04 in March 2022 and remained consistent through December 2022. A gradual decline commenced in March 2023, reaching 0.03 by September 2023 and persisting through December 2023. This trend continued into 2024, with the ratio reaching 0.02 in March and remaining at that level through December. A notable increase is observed in March 2025, rising to 0.05, followed by a slight decrease to 0.04 in June 2025. The ratio concludes the period with a significant increase to 0.08 in December 2025.
- Magnitude of Change
- The most substantial change in the ratio occurs between June 2025 and December 2025, with an increase of 0.04. Prior to this, the fluctuations were comparatively minor, generally within a range of 0.02 to 0.04. The initial period from March 2022 to December 2022 exhibited no change, maintaining a consistent ratio of 0.04.
- Total Debt and Assets Relationship
- Total debt decreased consistently from $14,791 million in March 2022 to $10,883 million in December 2024. However, a substantial increase in total debt is observed in March 2025 ($23,607 million) and continues to rise, reaching $46,547 million by December 2025. Simultaneously, total assets increased steadily throughout the period, from $357,096 million in March 2022 to $595,281 million in December 2025. The combined effect of decreasing debt and increasing assets initially drove the ratio downward. The subsequent increase in debt in 2025, despite continued asset growth, resulted in the ratio’s upward movement.
- Implications
- The sustained decrease in the debt-to-assets ratio from 2022 through 2024 suggests improved financial leverage and a reduced risk of insolvency. However, the sharp increase in the ratio during the final quarters of the analyzed period warrants further investigation to understand the reasons behind the increased debt levels and their potential impact on the company’s financial health.
Debt to Assets (including Operating Lease Liability)
Alphabet Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Long-term debt, excluding current portion | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Total debt | 46,547) | 21,607) | 23,607) | 10,886) | 10,883) | 12,297) | 13,238) | 13,228) | 13,253) | 13,781) | 13,705) | 13,697) | 14,701) | 14,653) | 14,734) | 14,791) | |||||
| Long-term operating lease liabilities | 12,744) | 12,106) | 11,952) | 11,678) | 11,691) | 11,654) | 11,708) | 11,957) | 12,460) | 12,550) | 12,746) | 12,799) | 12,501) | 11,984) | 11,697) | 11,363) | |||||
| Total debt (including operating lease liability) | 59,291) | 33,713) | 35,559) | 22,564) | 22,574) | 23,951) | 24,946) | 25,185) | 25,713) | 26,331) | 26,451) | 26,496) | 27,202) | 26,637) | 26,431) | 26,154) | |||||
| Total assets | 595,281) | 536,469) | 502,053) | 475,374) | 450,256) | 430,266) | 414,770) | 407,350) | 402,392) | 396,711) | 383,044) | 369,491) | 365,264) | 358,255) | 355,185) | 357,096) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.10 | 0.06 | 0.07 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||
| Meta Platforms Inc. | 0.23 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.17 | 0.17 | 0.16 | 0.17 | 0.18 | 0.15 | 0.14 | 0.14 | 0.09 | 0.09 | |||||
| Trade Desk Inc. | — | 0.06 | 0.06 | 0.06 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | 0.07 | 0.07 | 0.08 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 59,291 ÷ 595,281 = 0.10
2 Click competitor name to see calculations.
The Debt to Assets ratio, including operating lease liability, demonstrates a generally stable profile over the observed period, with a noticeable increase in the latter quarters. Initially, the ratio remained consistent at 7% from March 31, 2022, through September 30, 2023. A gradual decline to 5% was then observed by December 31, 2024, before increasing significantly to 10% by December 31, 2025.
- Overall Trend
- The ratio exhibited a period of stability followed by a marked increase. From the beginning of the period through the third quarter of 2023, the ratio remained consistently at 7%, indicating a stable capital structure. The subsequent decline suggests a reduction in debt relative to assets. However, the substantial rise to 10% in the final quarter of 2025 warrants further investigation.
- Short-Term Fluctuations (2022-2023)
- Between March 2022 and September 2023, the ratio remained remarkably stable. Total debt fluctuated within a relatively narrow range, while total assets experienced moderate growth. This suggests that any changes in debt levels were largely offset by corresponding changes in asset values, maintaining a consistent leverage position.
- Downward Trend (2024)
- The period from March 2024 to December 2024 shows a consistent decrease in the ratio, moving from 6% to 5%. This decline is attributable to a faster rate of growth in total assets compared to total debt, including operating lease liability. The company appears to have been increasing its asset base while simultaneously reducing its debt burden.
- Significant Increase (2025)
- A substantial increase in the ratio is evident in 2025. The ratio rose from 6% in September 2025 to 10% in December 2025. This is primarily driven by a significant increase in total debt, including operating lease liability, from US$33,713 million to US$59,291 million, while total assets grew from US$536,469 million to US$595,281 million. This suggests a deliberate increase in leverage, potentially to fund acquisitions, investments, or share repurchases.
The observed increase in the Debt to Assets ratio in the final quarter of 2025 represents a notable shift in the company’s financial structure and should be examined in conjunction with other financial metrics and strategic initiatives to fully understand its implications.
Financial Leverage
Alphabet Inc., financial leverage calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||
| Total assets | 595,281) | 536,469) | 502,053) | 475,374) | 450,256) | 430,266) | 414,770) | 407,350) | 402,392) | 396,711) | 383,044) | 369,491) | 365,264) | 358,255) | 355,185) | 357,096) | |||||
| Stockholders’ equity | 415,265) | 386,867) | 362,916) | 345,267) | 325,084) | 314,119) | 300,753) | 292,844) | 283,379) | 273,202) | 267,141) | 260,894) | 256,144) | 253,626) | 255,419) | 254,004) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Financial leverage1 | 1.43 | 1.39 | 1.38 | 1.38 | 1.39 | 1.37 | 1.38 | 1.39 | 1.42 | 1.45 | 1.43 | 1.42 | 1.43 | 1.41 | 1.39 | 1.41 | |||||
| Benchmarks | |||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||
| Comcast Corp. | 2.81 | 2.81 | 2.83 | 3.09 | 3.11 | 3.15 | 3.15 | 3.19 | 3.20 | 3.16 | 3.12 | 3.15 | 3.18 | 3.17 | 2.92 | 2.89 | |||||
| Meta Platforms Inc. | 1.68 | 1.57 | 1.51 | 1.51 | 1.51 | 1.56 | 1.47 | 1.49 | 1.50 | 1.51 | 1.54 | 1.48 | 1.48 | 1.44 | 1.35 | 1.33 | |||||
| Netflix Inc. | 2.09 | 2.12 | 2.13 | 2.17 | 2.17 | 2.30 | 2.22 | 2.29 | 2.37 | 2.24 | 2.23 | 2.27 | 2.34 | 2.32 | 2.43 | 2.58 | |||||
| Trade Desk Inc. | — | 2.28 | 2.21 | 2.10 | 2.07 | 2.10 | 2.15 | 2.15 | 2.26 | 2.10 | 2.10 | 2.06 | 2.07 | 2.05 | 2.06 | 2.08 | |||||
| Walt Disney Co. | 1.80 | 1.80 | 1.88 | 1.93 | 1.95 | 1.97 | 1.97 | 1.96 | 2.07 | 2.09 | 2.09 | 2.10 | 2.14 | 2.21 | 2.23 | 2.26 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 595,281 ÷ 415,265 = 1.43
2 Click competitor name to see calculations.
The financial leverage ratio for the analyzed period demonstrates a generally stable pattern with minor fluctuations. Throughout the observed timeframe, the ratio remains relatively concentrated between 1.37 and 1.45, indicating a consistent level of financial leverage employed by the company.
- Overall Trend
- From March 31, 2022, to December 31, 2023, the financial leverage ratio exhibited a slight increasing trend, rising from 1.41 to 1.42. This suggests a modest increase in the proportion of assets financed by debt during this period. However, this trend was followed by a decrease, reaching a low of 1.37 by September 30, 2024, before stabilizing and increasing again to 1.43 by December 31, 2025.
- Short-Term Fluctuations
- Quarterly variations within each year are generally minimal. For instance, in 2022, the ratio fluctuated between 1.39 and 1.43. Similar limited volatility is observed in subsequent years, suggesting consistent financial management practices. The most significant single-quarter change occurred between September 30, 2024, and December 31, 2024, with an increase from 1.37 to 1.39.
- Long-Term Perspective
- Comparing the beginning and end of the analyzed period, the financial leverage ratio increased from 1.41 in March 2022 to 1.43 in December 2025. While this represents a slight increase, the overall level of leverage remains consistent, indicating that the company has maintained a relatively stable capital structure over the five-year period. The ratio’s movement suggests a dynamic adjustment to financing strategies, but within a controlled range.
- Recent Developments
- The most recent quarters show a slight upward trend in the financial leverage ratio, increasing from 1.38 in March 2025 to 1.43 in December 2025. This could indicate a recent decision to increase debt financing, potentially for investment or operational purposes. Further investigation into the underlying reasons for this change would be beneficial.