Date post: | 22-Oct-2014 |
Category: |
Economy & Finance |
View: | 6,772 times |
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Google Inc.
The BeginningBegan at
Stanford University in 1996
Larry Page and Sergey Brin collaborated on research project
Mathematical algorithm dubbed PageRank
The Theory PageRank determined
how pages linked together
Listed in order of importance
Larry and Sergey developed a theory
Search engine based on PageRank
Google created; play on mathematical term “googol”
Historical Dates Google .com
registered September 15, 1997
Incorporated September 4, 1998 as private company
Initial public offering August 19, 2004
The Founders Larry Page-CEO
Day-to-Day Operations
Sergey Brin, Ph.D.-Co-founder
President of Technology
Eric Schmidt-Executive
Chairman Business Relationships
Projects547 Projects as
of July 2011Continues to
ExpandPurchasing
Motorola Investing in
ZyngaCreating
Google+ social network & Google Games
Dropping unfruitful projects; Google Desktop, 8 others
Financial OutlookProfit Margin (ttm):27.05%
Operating Margin(ttm):33.62%
Balance Sheet Comparison
Quarterly Annual
Cash FlowAs of September 2,
2011:Operating Cash Flow (ttm):
13.10B
Levered Free Cash Flow (ttm):
3.02B
Side by Side ComparisonYear Ended
December 31, 2009
Year Ended
December 31, 2010
Current Assets $29,167
Current Liabilities
$2,747Working Capital $26,
420
Current Assets $41, 562 Current Liabilities
$ 9,996Working Capital $31, 566
Debt Ratio AnalysisYear Ended
December 31, 2009
Year Ended
December 31, 2010
Total Liabilities$4,493
Total Assets$40,497
Debt Ratio0.11
Total Liabilities$11,610
Total Assets$57,851
Debt Ratio0.20
Further AnalysisYear Ended
December 31, 2009
Year Ended
December 31, 2010
Days Sales in Receivables:
46 daysRate of Return /Net
Sales:35.44%
Price/Earnings Ratio:$26.38
Days Sales in Receivables:
47 daysRate of Return /Net
Sales:36.82%
Price/Earnings Ratio:
$21.30
Stock Price Trend
Earnings per Share
Pending Legal ActionPayPal / Ebay Sues
for Trade Secret Theft
Patent Pending Lawsuits; One
dismissedMicrosoft Sues Motorola Mobility over Android OS
Android Obtains Personal Information
via Location Tracking
Oracle Sues for 6.1 Billion
Recommendation
CONS:Pending
LitigationsState of
EconomyNo Dividends
RecommendationPROS:
Financial Analysis Reflects Continued Growth
Also Reflects Little Risk
Company is Able to Pay Debts
Large Revenues
ConclusionGood Investment, but Advise to Await
Resolution of Pending Litigations