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Accounting 501: Financial Statement

ProjectBy: David LaskyJanithia JenkinsGeoffrey MattVikash Reddy

+Brief History

Founded in 1998 by Eric Schmidt & Sergey Brin

IPO: 2004 @ $85 per stock

Stock Symbol on Nasdaq: GOOG

Stock Price 12/10/10: $592.21

+Google: Products

Search

Mobile

TV & Music

Communications

+What They Do?

+Google: Industry & Their Competitors

Year Established Google’s Product Competitors

2002 Froogle (Google Product Search)

Amazon.com, eBay, Shopzilla, The Find

2005 Google Maps Mapquest

2006 Google Finance Yahoo Finance, MSN Money, AOL Money

2009 Google Health WebMD, Mayo Clinic

2009 Google Mortgage Bankrate, Lending Tree

2009 Google Places Yelp, Travel Advisor, CitySearch

2010 Google’s Boutiques.com

Ebay, Amazon

2010 Google Hot Spot Yelp, Other Review Sites

2011 Google’s Travel Search Site

Kayak, Expedia, Trip Advisor

+Google vs. Facebook

Google Facebook

Increased Employees since 2005: 5,000 – 23,000

Roughly 10% of Facebook’s employees are Google veterans

Increased Revenue since 2005: 3.2 billion – 23.7 billion

Worth estimated 6.9 billion dollars

Delivers search results selected by algorithms that take into account a user’s Web history

Delivers search results through a personalization based on one’s own “likes” and recommendation’s friends

Why Employees Leave: “Google’s gotten to be a lot bigger and slower-moving of a company. At Facebook, I could see how quickly I could get things done compared to Google.”

Why People Come to Facebook: “I think what we’ve found is that when you can you use products with your friends and your family and the people you care about they tend to be more engaging.”

+Google: US Economy

+Google: International

+Google: Subsidiaries

+Google: Current Events

Purchase of Groupon

Lawsuits

Loss of Employees

E-Commerce Sites

Lack of Growth

Search moving Mobile

+Google: The Future

+Google: Industry Comparisons

Liquidity Google Yahoo AOL

Current Ratio 10.62 2.67 .91

Quick Ratio 8.94 2.50 .81

Current Cash Debt Coverage Ratio

3.69 .76 1.21

Activity Google Yahoo AOL

Receivables Turnover

8.13 6.44 7.04

Asset Turnover

.65 .43 .82

+Google: Industry Comparisons

Profitability Google Yahoo AOL

Profit Margin 27.57% 9.26% 7.63%

Return on Assets

16.10% 4.00% 36.15%

Return on Common Stock Equity

18.11% 4.79% 8.11%

Earnings Per Share

$20.52 $0.43 $2.35

Coverage Google Yahoo AOL

Debt to Assets Ratio

11.09% 16.18% 22.71%

Cash Debt Coverage Ratio

2.07 .54 1.01

Book Value per Share

$113.30 $8.80 $28.95

+Google: Balance Sheet

Assets Dec 09 Dec 08 Dec 07

Current Assets:

Cash 10,197.6 8,656.7 6,081.6

Net Receivables

3,201.7 2,642.2 2,307.8

Inventories -- -- --

Other Current Assets

15,767.7 8,879.3 8,899.8

Total Current Assets

29,167.0 20,178.2 17,289.1

Net Fixed Assets

4,844.6 5,233.8 4,039.3

Other Noncurrent Assets

6,485.2 6,355.5 4,007.4

Total Assets: 40,496.8 31,767.6 25,335.8

+Google: Balance Sheet

Liabilities and Equity

Dec 09 Dec 08 Dec 07

Current Liabilities:

Accounts Payable 215.9 178.0 282.1

Short-Term Debt -- -- --

Other Current Liabilities

2,531.6 2,124.1 1,753.5

Total Current Liabilities

2,747.5 2,302.1 2,035.6

Long-Term Debt -- -- --

Other Noncurrent Liabilities

1,745.1 1,226.6 610.5

Total Liabilities: 4,492.6 3,528.7 2,646.1

Preferred Stock Equity

0.0 -- --

Common Stock Equity

36,004.2 28,238.9 22,689.7

Total Equity: 36,004.2 28,238.9 22,689.7

+Google: Income Statement

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Google: Would You Invest?