Analytical Analysis

 Global technology leader maintaining index of Web sites and other

online content for users, advertisers, Google network members,
and other content providers.
 Provides the users instant access to informations from its online
index
 Public limited company with authorized share capital of 100,000
preferred shares at par of $0.001 & 9,000,000 share capital of
Class A & Class B Common stock at par of $0.001
 First time incorporated in California in September 1998 and
reincorporated in Delaware in August 2003
 The stock exchange symbol of Google is “GOOG” and its shares are
traded on New York Stock Exchange (NYSE). There are two types of
common stock i.e. Common stock type A and common stock type
B. Common stock type A is listed and traded on the stock
exchange whereas common stock of type B is not listed on any
stock exchange.
 Current ratio
 The company has stable current ratio. It has increased
from 8.49 in 2007 to 8.77 in 2008 & 10.62 in 2009
 Collection Period
 Collection period decreased from 51 days in 2007 to 44
days in 2008 and after this it increased to 49 days in 2009.
 Gross profit
 Gross profit has increased from 59.93% in 2007 to 60.44%
in 2008 and finally increased to 62.61% in 2009
 Operating profit
 Operating profit has decreased from 30.64% in 2007 to
25.41% in 2008 and finally increased to 35.15% in 2009
 Return On Equity
 Return on equity has decreased from $0.19 in 2007 to
$0.15 in 2008 and finally increased to $0.18 in 2009
 Return On Assets
 Return on assets has decreased from $0.17 in 2007 to
$0.13 in 2008 and finally increased to $0.16 in 2009
 Financial Leverage
 Financial leverage has increased from 11.66% in 2007 to
12.50% in 2008 and finally decreased to 12.48% in 2009
 Earning Per Share - Basic
 Earning per share-basic has decreased from $13.53 in 2007
to $13.46 in 2008 and finally increased to $20.62 in 2009
 Earning Per Share - Diluted
 Earning per share- diluted has increased from $13.29 in
2007 to $13.31 in 2008 and finally increased to $20.41 in
2009
 Price Earning Ratio
 Price earning has decreased from 51 times in 2007 to 23
times in 2008 and finally increased to 26 times in 2009 due
to increase in market value of the share
 Posses very strong liquidity position
 Have growing trend in earning as depicted
 Have strong financial leverage position
 Have increasing trend in earning per share
 But have no policy to pay cash dividend and

not intended to pay cash dividend in future

 Investment can be made in shares of the

company to get the benefits of increase in

share prices