Google or Yahoo: Which Is a Better Investment and, or a Candidate for Merger or Acquisition?

Concluding our question of which is a better investment, and, or merger or acquisition candidate we will recap our findings from the financial performance characteristics of both Google and Yahoo. And, proving we have found Google to be the better purchase. We will mention the impending hostile takeover/acquisition of Yahoo by Microsoft. In review of the current ratio, measuring the short term debt paying ability, Yahoo has been in decline while Google’s had increased from inception. Yahoo’s current ratio of 1.41 times versus Google’s 8.49 times characterizes the point, and indicates a debt problem for Yahoo. The acid test or quick ratio, indicating how the two firms can meet immediate liabilities: Yahoo at 1.33 times and Google of 8.12 times. Current assets for Yahoo of $3,237,720,000.: versus $15,464,930,000 proves the sheer size of Google compared to Yahoo and all other competitors currently in the industry. In review of Yahoo’s debt we noticed they have changed Long Term Debt to convertible debt and listed it as a current liability, increasing Yahoo’s short term obligations. Google does not have Debt, giving the advantage to Google. Liquidity for Yahoo shows erratic since 2001, and more so in direct competition over the past couple years in direct competition with Google. We would endear to continue to check liquidity for Yahoo, but with an acquisition on the near horizon we may not have to. How are the assets provided by creditors in the Debt/Total Assets ratio: Google; 2007 10.44%, 2006 7.76%, 2005 8.3%, 2004 11.6% and 2003 (before going public) 30.85%. Yahoo: 2007 21.95%, 2006 20.37%, 2005 20.92%, 2004 22.15%, and 2003 25.81%. Google is showing a much lower leverage issue than Yahoo. While Yahoo isn’t faced with a catastrophe, it’s debt to total assets ratio is of some concern in relation to Google’s. Their book value per share since 2004, amount each share of stock would receive if the company were to liquidate at the amounts