Essay on Financial Research Report: Google

3642 Words Jul 5th, 2014 15 Pages
Financial Research Report: Google
FIN 534 Financial Management
Dr. Scott Shaw
June 15, 2014

The paper will analyze a corporation to determine whether a financial advisor should recommend the company to an investor. The paper will, first, give the company background. Second, the paper will discuss the type of investor the company would appeal to. Third, the paper will go over the financial health of the company. Fourth, after analyzing the financial information, the paper will discuss the company risk. Fifth, the paper will discuss final recommendations as to whether the company is the right fit for the investor.
Company Information
Google, Incorporated was originally a search engine company founded
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She is a multi-millionaire and has the desire to be an aggressive investor. She wants to accumulate a substantial amount of wealth in the future and is open to investing in a start- up company. Though the company has been around for approximately 16 years, Google is run like a start-up company and is relatively young compared to some of its competitors (i.e.: Microsoft and Apple). The company is always trying to reinvent itself with a diverse portfolio of products and services. They spend a lot of money on research and development to cultivate innovation and improve their products already on the market.
Google does not pay stockholders dividends. It uses the dividend money for R&D, data centers, legal issues and diversification (Rosoff, 2012). Since the client is not interested in an instant money maker and can afford fluctuations in the market, Google may be a good fit for her to invest in.
Financial Data
The financial advisor must use a number of ratios to determine the financial health of the company. Five ratios what will be used are current ratios, quick ratio, earnings per share, price earnings ratio, and debt to equity ratio.

Current Ratios
Current ratios give the investor the opportunity to see the company’s ability to pay back its short-term liabilities with its short-term assets (Current Ratios, n.d.). The higher the current ratio, the more capable the company is to pay back its debts

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