...Kyle Ryan Google case write up 2/18/14 BACKGROUND Kyle Ryan Google case write up 2/18/14 BACKGROUND e planet. This is due to the fact that you can search almost literally anything using either questions or key words that best describe what you are trying to find. From there you can usually find your answer directly. If not directly then indirectly through other websites and resources. Google does not provide earnings guidance to analysts. Earnings guidance are earnings forecasts of senior managers by publicly listed companies. Most companies provide earnings guidance to analysts and from there analysts conduct what they think the stock prices should be. A lot of people believe that this is why Google's stock prices declined from $625 in 2010 down to $467.97 in that same year! At one point Google's stock prices were as high $700 in 2007. WHY GOOGLE DOESNT ISSUE GUIDANCE: Googles policy is based on part of its broader corporate philosophy. This philosophy focuses on 3 commitments that Google follows. One of these commitments is to not be evil. Another commitment is that technology matters. The final commitment is the importance of innovations. These commitments, along with the commitment to be free and independent of wall street analysis and short term investors, help keep in tact the long term vision of the company. Google is always willing to face short term consequences, as long as the end result doesn't effect their long term opportunities. Their goal is to protect those...
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...referred to above present fairly, in all material respects, the consolidated financial position of Google Inc. as of December 31, 2012 and 2013, and the consolidated results of its operations and its cash flows for each of the three year in the period ended December 31, 2013, in conformity with U.S. generally accepted accounting principles. Also, in auditor’s opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly in all material respects the information set forth therein. Indicates the auditor’s opinion is unqualified. The report is dated February 11, 2014, this 42 days after the end of Google’s fiscal year, represents the date when all significant audit field work was completed. The opinion date is different than the date of financial statement, because the auditor should date the audit report no earlier than the date on which the auditor has obtained sufficient appropriate evidence to support the auditor's opinion. b. Managers often report “non-GAAP” or “pro forma” earnings as supplemental information when reporting their Generally Accepted Accounting Principles (GAAP) earnings. 1. What information can a non-GAAP earnings number provide that the GAAP earnings number does not? Give examples of possible differences that might exist between the two earnings numbers. “Non-GAAP” earnings numbers usually exclude expenses and losses that managers believe are one-time or non-recurring...
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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...
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...Financial Management 1. 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: 1. 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. 1. Liquidity measurement ratio: * Current ratio Google: 5.6 times Microsoft: 2.9 times 1. Profitability indicator ratios: * Return on assets Google: 15.6% Microsoft: 23.6% * Return on equity * Google: 19.5% * * Microsoft: 44.2% 1. Debt ratio: * Debt Equity ratio Google: 0.08 Microsoft: 0.2 1. Operating performance ratio: Asset turnover ratio Google: 0.6 Microsoft: 0.7 1. Cash flow indicator ratio: * Dividend payout ratio Google – Nil Microsoft- 0.64/2.69 =23.7% 1. Investment valuation ratio: * Price / Earnings ratio Google: 20.3 times Microsoft: 9.5 times 2. Compare and contrast each company’s business model:...
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...•What is the outlook for the search industry as seen in 2004? What are Google’s strengths and weaknesses in its main business line? •Do you think Google should go public? To answer this question, list the pros and cons of doing an IPO, and assess these points in the context of Google. Consider Google’s competitive position in its industry, the market conditions, concerns of managers, firm’s financial health, etc. Pros and Cons of doing an IPO: Pros Cons An IPO allows a company to tap a wide pool of investors to provide itself with capital for future growth, repayment of debt or working capital. • Significant legal, accounting and marketing costs •Get new capital to sustain growth/improve financial position. • Ongoing requirement to disclose financial and business information •Greater liquidity for firm’s equity. • Meaningful time, effort and attention required of senior management •Potential increase in equity value. • Risk that required funding will not be raised •Diversification of initial share holders’ personal portfolios and easier transfer of ownership. • Public dissemination of information which may be useful to competitors, suppliers and customers Google would be under intense scrutiny from Wall Street because of many failed IPO’s for the past couple of years. They also have a lot of competition from Yahoo and Microsoft. An area of concern was that Microsoft might design a version of its text processing software that could block the access of...
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...3mer Guidance Leaflet Chartered Institute of Personnel and Development 3MER Supporting Good Practice in Managing Employment Relations Assignment and Content Activity Investigate resources and write a guidance leaflet which covers key points of the areas detailed below. The impact of employment law at the start of the employment relationship including: * 2 Internal and 2 external factors which can impact on the employment relationship * 3 different types of employment status and 3 reasons why it is important to clarify/determine an individual’s employment status Employee rights during the employee relationship including: * The importance of work life balance and related legislation concerning holidays, rest periods, working hours and night working * Family/parent related legal support, including maternity leave, paternity leave, adoption leave and dependents leave * 2 reasons why employees should be treated fairly in relation to pay * The main points of equalities legislation including the concepts of direct and indirect discrimination, harassment and victimisation * The concept of the ‘psychological contract’ and examples of policies and procedures which can underpin this Issues to be addressed at the termination of the employment relationship including: * The difference between fair and unfair dismissal * The importance of exit interviews to both parties * The key stages to be followed in managing redundancies and the impact of redundancy...
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...Revenue recognition – the accounting term for determining the amount of revenues to be “booked” for purposes of calculating a firm’s earnings in a given period – is an important, complex and controversial issue. The importance of revenue recognition stems from the accountant’s approach to calculating earnings, which is to first calculate recognized (“booked”) revenues, and then deduct the accounting costs of earning those revenues (a process known as “matching costs with revenues”). Consequently, revenue recognition directly affects reported earnings and indirectly affects balance sheet numbers and several important financial ratios. Generally Accepted Accounting Principles (GAAP) includes some general revenue recognition principles as well as many specific rules for recognizing revenues in particular circumstances. Even then, there frequently is scope for interpretation and judgment by the company’s managers and auditors. For various reasons managers can be expected to have preferences for the amount of reported earnings, so when the rules provide some latitude they can be expected to exercise judgment in a fashion that reflects those preferences. In addition, when there are rules that provide explicit revenue recognition guidance, managers sometimes knowingly or unknowingly violate them. Not surprisingly, approximately 60 per cent of all accounting malfeasance involves revenue recognition issues. Revenue recognition is particularly important in the software industry,...
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... China’s middle class is growing at a rate of 10% (assuming China GDP growth of 7%) and is expected to be 1.5x the size of the US middle class in 2017, and 30% of iPhone buyers are switching from Android. Although it was arguably reasonable for analysts to sound the alarm bells from 2013 through 2014 because era-over-era growth dropped from 563.3% (iPhone 4-era) to 51.1% (iPhone 5 era), it is unfounded today given a conservative iPhone 6 era-over-era growth estimate of approximately 63% (30%+ per year). This report focuses on the iPhone because it generates nearly 70% of AAPL revenue and 100% of growth. I bought AAPL on 2/16/2016 at $95.0 because the Street’s 2017 revenue and earnings estimates are irrationally low. Thesis Summary: * The Street focuses on QoQ growth rates and next quarter guidance, which equates to comparing every iPhone release with the previous release in order to project short to medium term iPhone revenue growth. This methodology would have an investor think that iPhone growth is slowing and the iPhone 7 will produce far lower growth than the 5 (~25%/year) or the iPhone 6 (~30%/year) * The reasonable/rational way to think about iPhone growth is “era-over-era” because all iPhone releases are not comparable and one ought to expect AAPL's revenue growth to be lumpy. I refer to this business model as a “dud by design” strategy. * Therefore, short to medium term growth rates are irrationally downgraded on a...
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...April 13, 2012 Technology Google Inc. Ticker: GOOG Current Price: $630.84 Recommendation: Buy Implied Price: $688.77 Investment Thesis Key Statistics 52 Week Price Range 50-Day Moving Average Estimated Beta Dividend Yield Market Capitalization 3-Year Revenue CAGR $473.02 - $670.25 $XX$XX.XX $624.35 1.09 N/A $205.1 billion 20.26% Google’s market leading search engine will allow the company to continue to grow their advertising revenues domestically and internationally. As the internet continues to grow in popularity, demand for Google’s advertising services will continue to increase. With over 250 million mobile devices running Google’s Android operating system, and 850,000 being activated each day, any successful monetization of this system will result in substantial profits. Google’s culture of innovation will allow Google to continue to grow and remain a leader of the technology sector. Trading Statistics Diluted Shares Outstanding Average Volume (3-Month) Institutional Ownership Insider Ownership EV/EBITDA 325 million 2.647 million 81.80% 0.42% 9.2x Google Inc. (5- Year) Margins and Ratios Gross Margin EBITDA Margin Net Margin Debt to Enterprise Value Leverage Ratio 70.00% 39.25% 27.37% 2.55% 0.2x Covering Analyst: David Douglas 1 University of Oregon Investment Group University of Oregon Investment Group April 13, 2012 Business Overview Google Inc. was started in 1998 by two Stanford University students attempting to...
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...|1998-2008 until |USA |Global internet search solutions, |Big size, American public corporation earning revenue from | |now | |advertising solution |advertising related to its internet search, e-mail, online | | | | |mapping, social networking, and video sharing services as well | | | | |as selling advertising-free versions of the same technologies. | 2. BRIEF SUMMARY OF CASE SITUATION |Business or Industry Description |Particular Company Situation | | | | |Providing advertising solutions, global internet search |Google’s innovative search technologies connect millions of people around the world | |solution through its internet site and internet solutions via |with information every day. Founded in 1998 by Stanford Ph.D. students Larry Page and | |and enterprise search appliance. It maintains online index of |Sergey Brin, Google today is a top web property in all major global markets. Google’s | |websites and other content. It has...
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...Business Analysis for Apple Inc Robert A Smith II MGT 521 May 9, 2011 Mary Jo Payne, Ph.D. Business Analysis for Apple, Inc As children many people are taught that the only way to earn income is by obtaining a job, and a way to get more money is by logging additional hours on the job. This ideology is true, but for people who also value possessing the free time to enjoy life while in pursuit of financial success this way of life is also very wearing. Investing is a fiscal tool people can use to send their money to work. True investors understand that making their money work presents some risks, but with guidance and thorough analysis they can maximize their earning potential whether or not they receive a raise, decide to work overtime or look for a higher paying job (Investopedia, 2011). With many investment vehicles to choose from such as bonds, mutual funds, and company stocks, the most important thing to remember before investing is to do research and only invest money when there is a realistic probability of revenue. In this paper a Strength, Weakness, Opportunity, and Threat (SWOT) analysis of Apple Inc. was performed to determine if this electronic computer corporation giant is a worthy investment. SWOT Analysis |Strengths |Weaknesses |Opportunities |Threats | |Reputation |Product weaknesses |iPhones ...
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...He received a tip on a text message stated, “Don’t buy Polycom’s stock till I get guidance; want to make sure guidance OK.”. Khan had strong connections and access to confidential information of Google and Polycom that she passed to Raj Rajaratnam about the earnings and company’s stock. She also worked as the product marketer for intel and gave Rajaratnam all the credible tips to do business with intel. Reports suggests that Rajaratnam made an estimate of $30 million with her tips. Security and Exchange Commission commonly known as SEC and Federal Bureau of Investigations launched their brief investigation on Galleon Group and the Roomy khan’s text was a breakthrough for the feds to take investigation to next level. Khan became the government cooperator and she showed the feds all the conversations she had with Raj Rajaratnam regarding insider trading. She secretly recorded conversations with her colleagues and...
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...Qualification | Unit number and title | Pearson BTEC Level 5 HND Diploma in Business(QCF) | UNIT 16:Managing Communications, Knowledge, and Information | Student name and ID number | Assessors name | Kamiesha Lewis H1409030 | Abraham Pius | Date issued | Completion date | Submitted on | 25thJanuary 2016 | 08th May 2016 by 5.00pm | 03 May 2016 | Internal Verifier | Dr George Panagiotou | Assignment title | Google Inc | Instructions | * An electronic copy of your assessment must be fully uploaded by the deadline date and time. * You must submit one single PDF or MS Office Word document. Any relevant images or screenshots must be included within the same MS Office Word or PDF document. * The last version you upload will be the one that is marked. Your paper will be marked if you have indicated this as your final submission. * Review the mitigating circumstances policy for information relating to extensions. * The file size must not exceed 20MB. * Answer the criteria in order, clearly indicating the pass criteria number. * Ensure that all work has been proof-read and checked prior to submission. * Ensure that the layout of your documents are in a professional format with font style Arial, font size 12 for the text, font 14 for sub heading and font 16 for main heading, line spacing 1.5 and justified. * Use the Harvard referencing system; otherwise it will be considered as plagiarised work. * Ensure that you back-up your...
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...Employee Compliance and Benefits Employee benefits and regulatory compliance has evolved over time with the discovery and growth of the United States. Prior to the industrial revolution, most people lived and worked on farms or as craftsmen and “retirement” was something that usually occurred when you could no longer do manual labor. Many were struck down by illness, disease or accident and never made it to retirement age. Without the life-saving drugs and medical care we have today the average life expectancy was barely thirty years. With the advent of the industrial revolution, however, many farm dwellers traded their independence for membership in the ranks of a growing urbanized workforce searching for adequate wages and job security. Employers had a dilemma – they wanted to attract and retain workers while still paying no more than necessary, but also needed workers to leave employment when they became too old or costly. The evolving field of actuarial science was being applied to the fledgling life insurance industry and in turn used to develop pension plans to meet this employer objective. The Revenue Act of 1942 established minimum coverage rules in the tax code that prohibited employers from providing richer pension benefits to only higher paid employees. Employers also were now able to “integrate” and offset their contribution to Social Security benefits against the employer-provided pension benefit. This offset could result in a smaller or no pension benefit...
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...Harvard Business School. 9-111-003 Rev. September 10, 2013. Francois Brochet, Krishna G. Palepu, Lauren Barley. Accounting for the iPhone at Apple Inc. On October 21, 2008, Apple Inc. announced financial results for Q4 of FY 2008 ended September 27, 2008, (see Exhibit 1). Under the U.S. generally accepted accounting principles (GAAP), Apple reported quarterly revenue of $7.9 billion and net profit of $1.1 billion. For the first time, the Cupertino, California-based company included non-GAAP measures in its earnings announcement to supplement its U.S. GAAP financial results. Apple´s non GAAP quarterly revenue and net profit were $11.7 billion and $2.4 billion, respectively. As Apple CEO Steve Jobs noted, “As you can see the non-GAAP financial results are truly stunning” He explained the change in a rare appearance on the company´s earnings conference call later that day: I would like to … talk about the non-GAAP financial results, because I think this is a pretty big deal. In addition to reporting an outstanding quarter, today we are also introducing non-GAAP financial results, which eliminate the impact of subscription accounting. Because by its nature subscription accounting spreads the impact of iPhone´s contribution to Apple´s overall sales, gross margin, and net income over two years, it can make it more difficult for the average Apple manager or the average investor to evaluate the company´s overall performance. As long as our iPhone business was small relative...
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