Financial Analisis of Google Inc and Yahoo Inc

Financial analysis on Google (GOOG) and Yahoo (week 5). The company (YHOO) uses the financial statements of the most recent fiscal year submitted to the Securities and Exchange Commission and its initial financial statements. This information is acquired using the value line provided by Stafford Library, but I will use Yahoo Finance. In addition, they are also on the company website. I will briefly introduce what they mean to me, to help myself with projects that I need to recommend in the future.

Return on equity will analyze the financial performance of the organization. Organizations such as Google Inc. and Yahoo! who can make management more efficient can measure by factors such as return on equity (ROE) and return on total assets. Return on equity is a measure of the organization's ability to earn money from investment funds, which is most important to shareholders. Google 's ROE for 2007 and 2008 was 19% and 15% respectively compared to Yahoo. Inc.'s ROE are 9% and 8%, respectively.

Regarding the return on total assets, Yahoo! It is not behind Google. Yahoo's total asset sales in 2007 was 57%, compared with 53% in 2008. This is an average total asset turnover rate of 55% for two years. Same as Google and Yahoo! Inc. You can use assets to generate the necessary revenue. A high rate of return from Google and Yahoo proves that both companies can profit and create shareholder wealth and value. From the viewpoint of asset return (ROA) or ROI, "How will management use the asset to generate revenue", the ratio (Investopedia, 2009, 1). The rate of return on assets is used to determine the asset strength of companies investing or under consideration. Furthermore, "ROA data allows investors to understand how investors can effectively convert investment funds to net income" (2009, 4). The formula for determining the number of ROAs in this study is as follows.

Total asset turnover rate is calculated for Google Inc and Microsoft. In the case of Google, this ratio was 0.584 in 2009, 0.5068 in 2010, 0.522 in 2011. In other words, Google will receive an asset of $ 0.584 for a $ 1 investment in 2009. In 2010, Google Inc earned $ 0.5068 per $ 1 investment, but in 2011 Google Inc. acquired $ 0.522 per $ 1 investment. Similarly, Microsoft calculated this ratio to be 0.750 in 2009, 0.725 in 2010, 0.6434 in 2011. In other words, for a one dollar investment, Microsoft will earn asset income of $ 0.750. In 2010, we invested $ 0.725 per dollar revenue. In 2011, every dollar earned earnings fell further, reaching 0.6434 dollars. With the above in mind, you can infer that Google worked better than Microsoft. Microsoft's revenue has continued to decline for three years. Google's revenue declined from 2009 to 2010