Based on financial statements from three differernt companies, why is Google a good company to invest in?
The three companies selected for comparison and selection of the investment are Google Inc, Ashland Inc, and Amazon.com Inc. The financial statements can be found at: http://investor.google.com/earnings.html, http://investor.ashland.com/annuals.cfm, and http://phx.corporate-ir.net/phoenix.zhtml?c=97664&p=irol-reportsAnnual
First we compare the incomes of the companies over a period of five years. The income of Google has grown steadily from $4.2 billion in 2007 to $9.7 billion in 2011. There is no year during this period when the income has declined. The income of Ashland Inc. has increased from $230 million in 2007 to $414 million in 2011. However the income declined in 2008 and in 2009 it declined further and there was a net loss of $281 million. The net income of Amazon.com has increased from 476.0 million in 2007 to $631 million in 2011. However, the income in 2011 has declined from the $1.15 ...
This solution explains the justification of business investment . The sources used are also included in the solution.