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Analysis of Google

Using the Internet, and course materials, research and find a company to analyze. Prepare a report including the following information:

1. What is the history of this company? How did it begin? What differentiates this company from its competitors?

2. Compute the following ratios for this company:
current ratio
inventory turnover ratio
accounts receivable turnover ratio
debt to equity
return on assets
return on equity
gross margin on sales

3. What do these ratios indicate about the company?

4. Who would be interested in each of the ratios listed above? Why?

5. How well is this company doing? If possible, find the industry ratios for comparison.

6. What other information would be useful for investors and creditors in making economic decisions about this company?

7. Would you invest in this company?

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Solution Preview

The company chosen for the analysis is Google Inc., the renowned search engine company listed on NASDAQ as GOOG.

Google provides web search and online advertising services on the internet. Google has been a revolution in the online search engine and internet business with its amazing search engine technology. The company has redefined the way people use the internet. The company's products and services include Google.com, Google AdWords, Google AdSense, and Google Search Appliance. Its Google AdWords program is used by advertisers to promote their products and services on the Web with targeted advertising. The company's Google AdSense program is used by third party Web sites to deliver ads relevant to the content on their sites. It also provides enterprise search appliances to search corporate systems through the Google Search Appliance. In addition, the company provides email services through Gmail, which offers a gigabyte of free storage for each user along with email search capabilities and relevant advertising.

(Source: http://finance.yahoo.com/q/pr?s=GOOG )

The company was founded by two Stanford University graduates, Larry Page and Sergey Brin in 1998 and is headquartered in Mountain View, California. In mathematics, the word Google means 1 followed by 100 zeroes. The name was chosen by the co-founders to signify Google's capacity to find immense information over the web via its search engine. The idea of Google was conceptualized and developed in a dorm room of Stanford University and the company soon became a rage among online search engine users ...

Solution Summary

The company chosen for the analysis is Google Inc. In about 1,083 words, this solution discusses Google's history, its ratios, how it compares in the industry, and whether or not investment would be a good option.