For the Google Company can you prepare an excel spread sheet with the following
ID: 2743761 • Letter: F
Question
For the Google Company can you prepare an excel spread sheet with the following information?
3) Ratio analysis for the 2008, 2009, 2010. Including; gross profit margin, net profit margin, return on equity, return on capital, return on capital employed and return on assets, current ratio, earnings per share, price/earnings ratio, debt ratio, and debt-to-equity ratio.
4) A measurement for the creditworthiness of Google as measured by Altman’s Z-score. Please also present industry-average ratios or current year competitor ratios for this ratio analysis. Comparing Google's ratios to a close competitor or an industry-average ratio
Please prepare an excel spread sheet with this information
Explanation / Answer
Ans;
Liquidity Ratio All numbers in thausands; Currency in USD Current Ratio = Current Assets/Current Liability 30-Jun-14 = 114246000/45625000 2.50 30-Jun-13 = 101466000/37417000 2.71 30-Jun-12 = 85084000/32688000 2.60 Quick Ratio = (current assets-inventory)/current liability 30-Jun-14 = (114246000-2660000)/45625000 2.45 30-Jun-13 = (101466000-1938000)/37417000 2.66 30-Jun-12 = (85084000-1137000)/32688000 2.57 Leverage Ratios Long term debt/Equity ratio = Long term debt/Equity 30-Jun-14 = 20645000/89784000 0.23 30-Jun-13 = 12601000/78944000 0.16 30-Jun-12 = 10713000/66363000 0.16 Total debt/equity ratio = (short term debts + Long term debts)/Equity 30-Jun-14 = (2000000+20645000)/89784000 0.25 30-Jun-13 = (2999000+12601000)/78944000 0.20 30-Jun-12 = (1231000+10713000)/66363000 0.18 Profitibility Ratio Net profit margin = Net profit after taxation /sales 30-Jun-14 = 22074000/86833000 0.25 30-Jun-13 = 21863000/77849000 0.28 30-Jun-12 = 16978000/73723000 0.23 Operating profit margin = Operating profit/sales 30-Jun-14 = 27759000/86833000 0.32 30-Jun-13 = 26764000/77849000 0.34 30-Jun-12 = 21763000/73723000 0.30 Return on equity = Net profit after taxation / equity 30-Jun-14 = 22074000/89784000 0.25 30-Jun-13 = 21863000/78944000 0.28 30-Jun-12 = 16978000/66363000 0.26 Return on total assets = Net profit after taxation/total assets 30-Jun-14 = 22074000/172384000 0.13 30-Jun-13 = 21863000/142431000 0.15 30-Jun-12 = 16978000/121271000 0.14 Return on capital employed = Net profit after taxation/(total assets-current liability) 30-Jun-14 = 22074000/(172384000-45625000) 0.17 30-Jun-13 = 21863000/(142431000-37417000) 0.21 30-Jun-12 = 16978000/(121271000-32688000) 0.19 Efficiency Ratio Inventory Turnover = Sale/Inventory 30-Jun-14 = 86833000/2660000 32.64 30-Jun-13 = 77849000/1938000 40.17 30-Jun-12 = 73723000/1137000 64.84 Assets Turnover = Sales/total assets 30-Jun-14 = 86833000/172384000 0.50 30-Jun-13 = 77849000/142431000 0.55 30-Jun-12 = 73723000/121271000 0.61 Market value ratio Price earning ratio = Current stock price / earning per share 30-Jun-14 = 10/3.23 3.10 30-Jun-13 = 10/3.25 3.08 30-Jun-12 = 10/2.58 3.88 Other fundamental indicators Earning per share = net profit after taxation/issued common shares 30-Jun-14 = 22074000/6836600 3.23 30-Jun-13 = 21863000/6730600 3.25 30-Jun-12 = 16978000/6579700 2.58 Net assets value = (Total assets-total liability)/issued common shares 30-Jun-14 = (172384000-82600000)/6836600 13.13 30-Jun-13 = (142431000-63487000)/6730600 11.73 30-Jun-12 = (121271000-54908000)6579700 10.09 Working note Calculation of issued common shares = Isuued common stock value/price per share 30-Jun-14 = 68366000/10 6836600 shares 30-Jun-13 = 67306000/10 6730600 shares 30-Jun-12 = 65797000/10 6579700 shares Note : assuming common stock price $10 each common stock