Aureus
AExcellent

Alphabet Inc.(GOOGL)

A

Financial data as of Dec 31, 2025Stable · Communication Services

FCF Margin18.2%Free Cash Flow / Revenue
Cash Conversion124.6%Operating CF / Net Income
Free Cash Flow$73.3B
Revenue$402.8B
Net Cash-$28.6BNet debt position
Debt / FCF0.8xManageable debt load
Current Ratio2.01Adequate short-term liquidity
YoY FCF Growth-1.2%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (18.2%, 0.8x)
→
+1Very low debt-to-FCF ratio (0.8x)
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (18.2%)
  • Excellent cash conversion (125%)
  • Very low debt relative to cash flow (0.8x)
  • Strong liquidity (current ratio: 2.01)

Concerns

  • Net debt position ($28.6B)

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin18.2%
Net Margin32.8%
Operating CF Margin40.9%
CapEx Ratio22.7%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$28.6BNet debt position
Debt / FCF0.8xManageable debt load
Current Ratio2.01Strong liquidity
Debt / Equity0.14Low leverage

Quarterly FCF Trend

-1.2% YoYStable (-1.2%)

Free cash flow per quarter

Sector Comparison — Communication Services

FCF Margin ranked against sector peers

View all →

Detailed Metrics

Company NameAlphabet Inc.
SectorCommunication Services
Free Cash Flow$73.3B
Revenue$402.8B
Net Income$132.2B
Operating Cash Flow$164.7B
Capital Expenditure$91.4B
FCF Margin18.2%
Cash Conversion Rate124.6%
Net Margin32.8%
Total Debt$59.3B
Total Cash$30.7B
Net Cash-$28.6B
Current Ratio2.01
Debt / Equity0.14
Debt / FCF0.8x
YoY FCF Growth-1.2%
Positive Quarters5 of 5
Trend DirectionStable
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance

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