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Compare and Contrast Google’s Business Model and Financial Management with Microsoft’s, Which Launched Bing.

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Submitted By daniethio2004
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Google, a leader in Internet information searching, is being challenged by other big names in Internet technology. Compare and contrast Google’s business model and financial management with Microsoft’s, which launched Bing.
Access Google and Microsoft’s annual reports and financial statements at their Websites. In addition to the text, you may access some other sites and or sources to understand the how to analyze an income statement and a balance sheet. For example, the following sites can provide guidance:
Understanding the Income Statement at: http://www.investopedia.com/articles/04/022504.asp
Reading the Balance Sheet at: http://www.investopedia.com/articles/04/031004.asp
However, if these sites are not available, there are other sites that can be accessed that will provide sufficient information and guidance.
Write a 7-8 page paper in which you:
Calculate or identify from each company’s most recent annual report the six (6) specific financial ratios listed and provide as an appendix to the paper.
Liquidity measurement ratio:
Current ratio
Profitability indicator ratios:
Return on assets
Return on equity
Debt ratio:
Debt ratio
Operating performance ratio:
Fixed asset turnover ratio
Cash flow indicator ratio:
Dividend payout ratio
Investment valuation ratio:
Price / Earnings ratio
(If you need help with ratios you could access Web sites that provide guidance such as: http://www.investopedia.com/university/ratios/
However, if this site is not available, other sites can be accessed that offer similar information.)
Compare and contrast each company’s business model: (1) core business, (2) leading products and/or services, (3) management/leadership style, and (4) innovation track record.
Use the financial ratio analysis and explain which company is better able to withstand a major recession.
Explain what the profitability ratios can tell

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