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Finance 515 Course Project

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Submitted By nadiaghani
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Course Project
Finance 515

Table of Contents

Introduction………………………………………………………………………………..3
Liquidity Ratios………………………………………………………………………….. 3
Current Ratios …………………………………………………………………………… 3
Cash Ratios ……………………………………………………………………………….4
Profitability Indicator Ratios ……………………………………………………………5
Operating Margin ……………………………………………………………………… 5
Gross margin …………………………………………………………………………… 6
Discounted Cash Flow ……………………………………………………………… 7
Compare and contrast the value (intrinsic values) with the current market prices. …….8
Analyze your finding. ………………………………………………………………… 8
References ……………………………………………………………………………… 9
Appendix……………………………….……………………………………………… 10

Yahoo Inc. is a publicly traded company which is American multinational Internet corporation headquartered in Sunnyvale, California. Yahoo is globally known because of its web portal, which is Yahoo.com and other related services, such as, Yahoo Directory, Yahoo Mail, Yahoo News,Yahoo Finance, Yahoo Groups, Yahoo Answers, advertising, online mapping, video sharing, fantasy sports and its social media website. According to Yahoo Inc., roughly 700 million million log onto its sites from all over the world every month. Yahoo also claims that more than half a billion people log onto Yahoo every month in more than 30 languages. Founded by Jerry Yang and David Filo in January 1994 and was incorporated on March 1, 1995.
Liquidity Ratios:
Liquidity ratios show the ability of the company to pay of its short-term obligations. The higher the ratio is for the company; it shows that the company has a higher safety net to cover its short-term obligations. Here I will explain the current ratio and cash ratio, under liquidity ratio, to show Yahoo’s financial strengths and weaknesses. liquidity ratios | 12/31/2013 | 12/31/2012 | 12/31/2011 | Current ratio | 375% | 438% | 286% | Cash Ratio | 254% | 324% | 170%

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