Founded in 1998, Google has grown from 5,000 employees in 2005 to over 23,000 today. It has increased revenue from $3.2 billion in 2005 to $23.7 billion currently. While Google dominates search, it faces competition from companies like Facebook in other areas. Google has a very strong financial position with high liquidity, asset turnover, profit margins, and low debt.
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1. Accounting 501: Financial Statement Project By: David Lasky Janithia Jenkins Geoffrey Matt Vikash Reddy
2. Brief History Founded in 1998 by Eric Schmidt & Sergey Brin IPO: 2004 @ $85 per stock Stock Symbol on Nasdaq: GOOG Stock Price 12/10/10: $592.21
5. Google: Industry & Their Competitors Year Established Googles Product Competitors 2002 Froogle (Google Product Search) Amazon.com, eBay, Shopzilla, The Find 2005 Google Maps Mapquest 2006 Google Finance Yahoo Finance, MSN Money, AOL Money 2009 Google Health WebMD, Mayo Clinic 2009 Google Mortgage Bankrate, Lending Tree 2009 Google Places Yelp, Travel Advisor, CitySearch 2010 Googles Boutiques.com Ebay, Amazon 2010 Google Hot Spot Yelp, Other Review Sites 2011 Googles Travel Search Site Kayak, Expedia, Trip Advisor
6. Google vs. Facebook Google Facebook Increased Employees since 2005: 5,000 23,000 Roughly 10% of Facebooks employees are Google veterans Increased Revenue since 2005: 3.2 billion 23.7 billion Worth estimated 6.9 billion dollars Delivers search results selected by algorithms that take into account a users Web history Delivers search results through a personalization based on ones own likes and recommendations friends Why Employees Leave: Googles gotten to be a lot bigger and slower-moving of a company. At Facebook, I could see how quickly I could get things done compared to Google. Why People Come to Facebook: I think what weve found is that when you can you use products with your friends and your family and the people you care about they tend to be more engaging.
12. Google: Industry Comparisons Liquidity Google Yahoo AOL Current Ratio 10.62 2.67 .91 Quick Ratio 8.94 2.50 .81 Current Cash Debt Coverage Ratio 3.69 .76 1.21 Activity Google Yahoo AOL Receivables Turnover 8.13 6.44 7.04 Asset Turnover .65 .43 .82
13. Google: Industry Comparisons Profitability Google Yahoo AOL Profit Margin 27.57% 9.26% 7.63% Return on Assets 16.10% 4.00% 36.15% Return on Common Stock Equity 18.11% 4.79% 8.11% Earnings Per Share $20.52 $0.43 $2.35 Coverage Google Yahoo AOL Debt to Assets Ratio 11.09% 16.18% 22.71% Cash Debt Coverage Ratio 2.07 .54 1.01 Book Value per Share $113.30 $8.80 $28.95
14. Google: Balance Sheet Assets Dec09 Dec08 Dec07 Current Assets: Cash 10,197.6 8,656.7 6,081.6 Net Receivables 3,201.7 2,642.2 2,307.8 Inventories -- -- -- Other Current Assets 15,767.7 8,879.3 8,899.8 Total Current Assets 29,167.0 20,178.2 17,289.1 Net Fixed Assets 4,844.6 5,233.8 4,039.3 Other Noncurrent Assets 6,485.2 6,355.5 4,007.4 Total Assets: 40,496.8 31,767.6 25,335.8
15. Google: Balance Sheet Liabilities and Equity Dec09 Dec08 Dec07 Current Liabilities: Accounts Payable 215.9 178.0 282.1 Short-Term Debt -- -- -- Other Current Liabilities 2,531.6 2,124.1 1,753.5 Total Current Liabilities 2,747.5 2,302.1 2,035.6 Long-Term Debt -- -- -- Other Noncurrent Liabilities 1,745.1 1,226.6 610.5 Total Liabilities: 4,492.6 3,528.7 2,646.1 Preferred Stock Equity 0.0 -- -- Common Stock Equity 36,004.2 28,238.9 22,689.7 Total Equity: 36,004.2 28,238.9 22,689.7
#7: In 2010, Google gave a 10% raise to all of its 23,000 employees.
#9: Europe Anti- Trust: In November 2010, the Europeans Unions top antitrust authority said it began a formal inquiry into whether Google manipulates its search results to disadvantage competing Web services, or giving preferential placement to Googles own services. Now American companies are beginning the same complaint. China Censorship: