Questions On Google's Business Model

1. Google earns revenue in a variety of different ways, using advertising as the driving force behind most of its profits. Google’s original business model was licensing its

1. Using the current ratio, discuss what conclusions you can make about each company’s ability to pay current liabilities (debt).

A. Current Ratio: The ability for a company to pay short term obligations is measured by this ratio. In 2011 Company G moved from 1.86 to 1.77. Compared to the 1.9 Home Center Retail Benchmarks industry ratio, the numbers are below standards. Current Ratio represents values above 2 quartile industry benchmarks data (1.4 to 2.1). Current Ratio represents a weakness for Company G.

a. The financial statements I would use are the Balance Sheets, Income Statements, Cash Flow Statements, and Shareholders Equity Statements from the last 2-5 years. In order to better assess the company it would be advantageous to understand the company’s business, industry and their competitors. In addition, to assist in the assessment of the company, it would be helpful to have financial ratios of the company’s competitors and the industry, too.

Due to the increased competition from Yahoo and Microsoft, it has posed a great threat to Google Company. Entry of such like companies in the market has been relatively easy and even offering similar services to the consumers is no longer a problem as unlike a while back, technology has greatly improved. With an improvement in technology, creating sites that help people access information from the internet has been quite cheap and all it calls for is the creativity of a company. Google, however, has been able to remain at the top of the chart. They have been able to come up with a user-friendly search engine for their clients, one that is easy to understand as well as easy to use. Also, Google has been able to cut on cost as they are able to create web pages using UNIX web servers which are relatively cheap. This makes it possible for them to minimize the cost of input and hence maximizing their profit margins. This makes it possible for them to hire qualified personnel, offer quality services, advertise their products, and even offer promotions, helping them overcome the competition in the market structure.

From your analysis of research materials, examine the company and provide a report on the short and long range financial problems that are evident from the review. If you find no short or long range financial problems, provide the evidence to justify this conclusion.

Google Inc. provides the biggest threat to Apple Inc. due to the hugely growing line of the Android market and their overwhelming ability to provide advertising to vendors. This seemingly puts heavy pressure on Apple to keep up with new products and to continue to create the next best thing. Google provides a much different way of recording their revenue. This is due to the fact that they receive revenue in a much different way. Google, unlike Apple who mostly sells products over services, sells services over products. The main source of income they receive is from providing there vendors with advertising space. As much as 96% of the company’s revenue comes from this source (Google Inc., 2012). Within this variation, they recognize revenue a little differently. Since most of the revenue comes from advertising, Google collects most revenue on a

For this research paper, I would like to select Google Inc. as a public company. This research paper would be helpful to prepare horizontal analysis of income statement and balance sheet of Google Inc. and to perform ration analysis to know the financial performance of the company.

The long-term liquidity risk ratio such as LT debt/Equity, D/E, and Total Liabilities to Total Assets all show a decline from year 2005 due to the repayment of debts. The interest coverage ratio also shows a healthy number of 29.45 in comparison to the industrial average of 15.04 indicating a high ability to pay out its interest expense. Such a low relative risk is not surprising due to the nature of its business depending heavily in R&D development and large intangible assets.

The table below shows the analysis of the debt ratio. The Debt ratio helps in analyzing the organization’s ability to pay off its long-term debts through its total assets. The debt ratio of the Walt Disney Company remains below 50% in 2013,2014 and 2015. This shows that Walt Disney company is conservative in nature and taking less, risk which may reduce the profitability for the company due to lack of trade equity. However, a lower debt ratio reduces the risk of bankruptcy. Debt to equity ratio is 0.81, 0.75, & 0.69 for the year 2015, 2014 & 2013 respectively. Debt to equity ratio shows the gradual increase year by year, this increase means that the increasing the debt-to-equity level could benefit the company by reducing the cost of capital.

As Sergey and I wrote in the original founders letter 11 years ago, “Google is not a conventional company. We do not intend to become one.” As part of that, we also said that you could expect us to make “smaller bets in areas that might seem very speculative or even strange when compared to our current businesses.” From the start, we’ve always strived to do more, and to do important and meaningful things with the resources we have.

Google’s business model is Business Model Canvas. This model provides key information on the strategy of Google’s business. Google who is recognized as one of the top leading technology company in the world and one of the most widespread search engines on the internet that is used by many. Because Google is one of the most widely used search engine which attracts advertisers to Google services in order for them to reach a higher

In conclusion, Google is a sound investment that according to the analysis will continue to increase their profits and their dominance in the marketplace.

Michael Lewis (2000: pages 256-257) scoffed at the whole attempt to formalize the definition of business models when he wrote that “ “Business Model” is one of those terms of art that were central to the Internet boom: it glorifies all manner of half baked plans. All it really meant was how you planned to make money.”

Google was founded in 1998 by Larry Page and Sergey Bin. Founders Page and Bin met at Stanford University in 1995. By 1996 they built a search engine (initially called BackRub) that used links to determine the importance of individual web pages. Google Inc. was born in 1998, when Sun co-founder Andy Bechtolsheim wrote a check for $100,000 to that entity—which until then didn’t exist. Since the start, they 've focused on providing the best user experience possible.