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SHAHID JAVAID 17181

FAHAD JAVAID 15540

FINANCIAL RATIOS

GOOGLE

Profitability 2008 2009

Gross Margin % 60.4 62.6

Operating Margin % 30.4 35.1

Working Capital USD Mil 17,876 26,419

Return on Assets % 14.8 18.05

Return on Equity % 16.6 20.3

EPS 13.31 20.41

Liquidity/Financial Health 2008 2009

Current Ratio 8.77 10.62

Quick Ratio 8.03 10.08

Financial Leverage 1.13 1.12

Efficiency 2008 2009

Payables Period 9.74 8.13

Cash Conversion Cycle 0.00 0.00

Receivables Turnover 9.07 8.13

Inventory Turnover 0.00 0.00

Fixed Assets Turnover 4.7 4.69

Asset Turnover 0.76 0.65

Gross margin and net margin were increased in 2009 which means that company was going inprofits and achieving its targets.

Return on assets and equity were also showing positive change which means Google was usingits assets and equity efficiently.

As company was going in profits therefore its share price was also increased. Current and quick ratios were also increasing which means that company is becoming stronger

to meet its short term liabilities.

Payable period has decreased which is a good sign for companys goodwill. Receivable turnover has decreased which is a negative prospect for the company because now

company is not able to recover from its debtors in 2009

Fixed asset turnover is stable.

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SHAHID JAVAID 17181

FAHAD JAVAID 15540

FINANCIAL RATIOS

GAP

Profitability 2008 2009 2010

Gross Margin % 36.1 37.5 40.3

Operating Margin % 8.3 10.7 12.8

Earnings Per Share USD 1.05 1.34 1.58

Working Capital USD Mil 1,653 1,847 2,533

Return on Assets % 10.17 12.56 14.17

Return on Equity % 17.63 22.33 23.76

Liquidity/Financial Health 2008 2009 2010

Current Ratio 1.68 1.86 2.19

Quick Ratio 0.78 0.79 1.21

Financial Leverage 1.83 1.72 1.63

Efficiency 2008 2009 2010

Payables Period 38.33 39.82 43.12

Cash Conversion Cycle 0.00 0.00 0.00

Receivables Turnover 0.00 0.00 0.00

Inventory Turnover 5.98 5.89 5.68

Fixed Assets Turnover 4.88 4.69 5.11

Asset Turnover 1.92 1.89 1.83

Gross margin and net margin were increased every year which means that company was goingin profits and achieving its targets.

Return on assets and equity were also showing positive change which means GAP was using itsassets and equity efficiently.

As company was going in profits therefore its share price has also increased every year. Current and quick ratios have increased every year which means that company is becoming

stronger to meet its short term liabilities.

Payable period has increased every year which is a good sign for companys financialprospective.

Inventory turnover has decreased every year which is not a good sign for company because nowcompany is taking more times to sell its inventory.