Google Financial

cial Financial Statement Analysis counterpoise Sheet Our first analysis of Google begins with the Balance Sheet. The balance sheet is sometimes referred to as a monetary snapshot, because it represents the business only at specific time periods. First, it is of the essence(p) to evaluate what the business is worth. This brings up what is known as the observe problem: involving the conflicting issue between the book survey and the market value. The book value of the ships company is simply the sh arowners equity, which is found on the balance sheet. This is because the accounting equation, A=L+OE refers to the assets minus the claims against the assets to equal the book value of the company. However, this does not represent Googles actual value. The market value of the company more accurately reflects the received worth of the corporation. There are two reasons for the discrepancy: 1. Financial statements are work based. The transaction figures are recorded when they occurred and entered into the balance sheet. The figures are never correct for the time value of money so there is very(prenominal) little relevance. Also, depreciation does not accurately reflect the true worth of assets. 2. Investors buy the stock for expectations of future earnings, not for the inherent value of investors.

This is an important distinction, especially in a applied science company like Googles where investors rely so intemperately on intangible assets, which are very difficult to redact an intrinsic value to. The market value of Google was found to be $145.4 Billion. (See Appendix A-1). The market value is calculated by multiplying shares salient(ip) by the price per share. This is also referred to as market capitalization. Googles market capitalization compares to $38.4 Billion for Yahoo, its closest competitor. This shows that Google has established an howling(a) market share, due to its strong core competencies, which will be mentioned later. To compare the two, market value and book... If you want to get a full essay, order it on our website: Ordercustompaper.com

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