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Analysis and justification of business investment

Based on financial statements from three differernt companies, why is Google a good company to invest in?

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Step 1:
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 ...

Solution Summary

This solution explains the justification of business investment . The sources used are also included in the solution.