Google Financial Analysis On The Health Of A Business

Google: Financial Analysis Financial statements provide a picture of the health of a business is and how prepared they are to face the challenges ahead. Publically traded companies are required to post financial statements and a detailed 10-K report on the SEC website. This is a tool that creditors, analysts, and investors use in assessing the health and future of a company. This information is also used by management and decision makers to spot potential problems and move in a more positive direction. Google has enjoyed great success, but they are not immune to challenge and their 10-K report is an accurate representation of these challenges. Google’s Business Model Google is a global technology leader providing products and services†¦show more content†¦Factors include increasing competition, changes in property, platform, and geographical mix, challenges maintaining growth rate, and the evolution of the online advertising market including an increased variety of online platforms. Google believes they will experience downward pressure as a result of increased competition and expenditures. All of these factors could have an adverse effect on Google’s financial results. Analysis of Financial Ratio’s A successful business requires effective planning and financial management. Ratio analysis can improve understanding of the financial results and trends over time, providing key indicators of organizational performance (Demonstrating Value, n.d.). Financial ratios are used by stakeholders including creditors, corporate controllers, accountants, financial analysts, and investors. Analyzing ratios can help determine the liquidity, profitability, debt management, and stability of a corporation. Time series analysis allows users to see where a company has been and where they appear to be going and comparing the ratios to competitors offers insight into the ability to compete and thrive in their markets. DuPont Ratio’s DuPont analysis is a method of performance measurement started by the DuPont Corporation in the 1920s (Investopedia, n.d.). Total asset turnover indicates how much revenue is generated from every dollar spent on