Google Financial Analysis
| Sumit Das-Assignment 2 | Financial Ratio Analysis-Google Corporation | | Sumit | 3/12/2013 |
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Contents Objective of Study 2 Analysis of Auditors Report 2 Common Size Ratio Analysis 3 Analysis of Liquidity Ratios 4 Analysis of Leverage ratios 5 Analysis of Efficiency Ratios 6 Analysis of Profitability Ratios 7 Analysis of Effectiveness/Market Performance Ratios 8 Summary 9 Current Ratio (2011) 9 Average Collection Period 9 Debt Ratio 9 Accounts Payable turnover 10 Gross Profit Margin 10 Return on Assets 10 Recommendations 11
Objective of Study
Financial ratio analysis is a very important element of fundamental analysis process. Working through number in a financial statement can be very difficult for any financial analyst .Working through ratios gives us the opportunity to work through the financial analysis in a very well organised manner. Financial ratios help us to see financial terms relative to other financial terms and thus provide more meaningful and useful information for the company and its investors.
The objective of this study will be to calculate most relevant ratios for Google Corporation and analyse them to come to some conclusions about the current financial situation of the company. Google Corporation is a technology company .Its business is mainly focused in the following key areas: search, advertising, operating systems and platforms, and enterprise (SEC).For this analysis we will be using Microsoft as a benchmark company and companies like Yahoo and AOL to calculate the industry averages.
Financial ratios are divided into different categories like profitability, liquidity etc. Each category discusses a particular aspect of the financial health of the company. Along with the standard ratios we will also calculate some ratios that give us some useful insights regarding Google Corporation.
Once the ratios are calculated we perform three different types of analysis on them which are
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Contents Objective of Study 2 Analysis of Auditors Report 2 Common Size Ratio Analysis 3 Analysis of Liquidity Ratios 4 Analysis of Leverage ratios 5 Analysis of Efficiency Ratios 6 Analysis of Profitability Ratios 7 Analysis of Effectiveness/Market Performance Ratios 8 Summary 9 Current Ratio (2011) 9 Average Collection Period 9 Debt Ratio 9 Accounts Payable turnover 10 Gross Profit Margin 10 Return on Assets 10 Recommendations 11
Objective of Study
Financial ratio analysis is a very important element of fundamental analysis process. Working through number in a financial statement can be very difficult for any financial analyst .Working through ratios gives us the opportunity to work through the financial analysis in a very well organised manner. Financial ratios help us to see financial terms relative to other financial terms and thus provide more meaningful and useful information for the company and its investors.
The objective of this study will be to calculate most relevant ratios for Google Corporation and analyse them to come to some conclusions about the current financial situation of the company. Google Corporation is a technology company .Its business is mainly focused in the following key areas: search, advertising, operating systems and platforms, and enterprise (SEC).For this analysis we will be using Microsoft as a benchmark company and companies like Yahoo and AOL to calculate the industry averages.
Financial ratios are divided into different categories like profitability, liquidity etc. Each category discusses a particular aspect of the financial health of the company. Along with the standard ratios we will also calculate some ratios that give us some useful insights regarding Google Corporation.
Once the ratios are calculated we perform three different types of analysis on them which are
Bibliography: Investopedia. (n.d.). Retrieved from http://www.investopedia.com/university/ratios/liquidity-measurement/ratio4.asp#axzz2N8cU2Qed SEC. (n.d.). Retrieved from http://www.sec.gov/Archives/edgar/data/1288776/000119312512025336/d260164d10k.htm#toc260164_2