Google INC 10-K : https://www.sec.gov/Archives/edgar/data/1288776/00016520441600
ID: 2552574 • Letter: G
Question
Google INC 10-K : https://www.sec.gov/Archives/edgar/data/1288776/000165204416000012/goog10-k2015.htm
Select 3 financial ratios from the textbook and use the information from the financial statements to calculate the ratios. At the end of the textbook there is a list of financial ratios titled “Analyses.” There is also one or more ratios listed at the end of each chapter. Any 3 ratios may be selected from these sources. (Current ratio, Debit ratio, and Profit margin ratio)
Briefly research your company and its history.
Report Contents:
1) The introduction should describe the company. For example, what does the company do, where the company is located, when was it established, etc.
2) The body of the report should discuss the results of your financial ratio calculations. Be sure to include the name of the ratio and the formula. Then, show the calculations typed out. Lastly, interpret the ratio; this means describe what the ratio is telling you.
3) The conclusion of the report should include your opinion about whether or not you would invest in the company and why.
Explanation / Answer
1-
company is google incorporation which a US registered firm and its main business is in delivering online advertising that consumers find relevant and that advertisers find cost-effective. Google's core products such as Search, Android, Maps, Chrome, YouTube, Google Play each have over one billion monthly active users
2-
2014
2015
current ratio
current assets/current liabilities
4.69
4.67
current assets
78656
90114
current liabilities
16779
19310
2014
2015
debt ratio
total of liabilities/total assets
0.20
0.18
total of liabilities
16779+3228+104+3440+758+1118
25427
19310+1995+191+3663+189+1822
27170
total of assets
129187
147461
3-
profit margin ratio
net income/total revenue
21.42%
21.80%
net income
14136
16348
total revenue
66001
74989
company Liquidity position is more stable as it is having sufficient number of current assets to pay its current liabilities. Debt ratio has decreased over the previous year and profitability is almost constant so we can say that company is more stable in its financial performance on liquidity, profitability and into leverage ratio
1-
company is google incorporation which a US registered firm and its main business is in delivering online advertising that consumers find relevant and that advertisers find cost-effective. Google's core products such as Search, Android, Maps, Chrome, YouTube, Google Play each have over one billion monthly active users
2-
2014
2015
current ratio
current assets/current liabilities
4.69
4.67
current assets
78656
90114
current liabilities
16779
19310
2014
2015
debt ratio
total of liabilities/total assets
0.20
0.18
total of liabilities
16779+3228+104+3440+758+1118
25427
19310+1995+191+3663+189+1822
27170
total of assets
129187
147461
3-
profit margin ratio
net income/total revenue
21.42%
21.80%
net income
14136
16348
total revenue
66001
74989
company Liquidity position is more stable as it is having sufficient number of current assets to pay its current liabilities. Debt ratio has decreased over the previous year and profitability is almost constant so we can say that company is more stable in its financial performance on liquidity, profitability and into leverage ratio
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