Financial Statement Analysis : Google Inc.

1639 WordsNov 12, 20157 Pages
Google Inc. Year 2012 Financial Statement Analysis Name Professor Institution Course Date GOOGLE INC. FINANCIAL STATEMENT ANALYSIS Introduction Investment has been a key factor in business world. People search for the best performing industries and identify the most profitable company, which they then invest their money. Although one can judge the company’s investment worth through profits, analysis of the entire financial statement is critical for a good decision-making. In the current business industry, financial statements have become critical in understanding the financial performance of a business in order to make proper investment decisions. In addition, the financial statements are important in providing information to…show more content…
The employees use the financial GOOGLE INC. FINANCIAL STATEMENT ANALYSIS rations to assess the profitability and stability of the company for them to have job assurances and pay rise. In this paper, the financial statement for Google Inc. as year ended 2012 will be used for analysis where different ratios will be evaluated and calculated. The analysis will include Horizontal Analysis on income, Horizontal Analysis of the Balance Sheet, Trend Analysis on Net Sales, Income from Continuing Operations, Net Income Vertical Analysis, Income statement Vertical Analysis, Balance Sheet Ratio Analysis: Working Capital, Current Ratio, Cash Ratio, Acid-Test (Quick) Ratio, Inventory Turnover, Days’ Sales in Inventory, Gross Profit Percentage, Accounts Receivable Turnover, Days’ Sales in Receivables, Debt Ratio, Debt to Equity Ratio, Times-Interest-Earned Ratio, Profit Margin Ratio, Rate of Return on Total Assets, Asset Turnover Ratio, Rate of Return on Common Stockholders’ Equity, Earnings per Share Price, Earnings (P/E) Ratio, Dividend Yield, Dividend Payout, and uses of charts and graphs for the discussion of the results (Warren, Reeve, J& Duchac, 2009). The importance and the implications of the ratios to the Google Inc Company will be discussed and the investment potential determined. Brief background of Google Company Google Company is one of the
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