Google Inc.

The BeginningBegan at

Stanford University in 1996

Larry Page and Sergey Brin collaborated on research project

Mathematical algorithm dubbed PageRank

The Theory PageRank determined

how pages linked together

Listed in order of importance

Larry and Sergey developed a theory

Search engine based on PageRank

Google created; play on mathematical term “googol”

Historical Dates Google .com

registered September 15, 1997

Incorporated September 4, 1998 as private company

Initial public offering August 19, 2004

The Founders Larry Page-CEO

Day-to-Day Operations

Sergey Brin, Ph.D.-Co-founder

President of Technology

Eric Schmidt-Executive

Chairman Business Relationships

Projects547 Projects as

of July 2011Continues to

ExpandPurchasing

Motorola Investing in

ZyngaCreating

Google+ social network & Google Games

Dropping unfruitful projects; Google Desktop, 8 others

Financial OutlookProfit Margin (ttm):27.05%

Operating Margin(ttm):33.62%

Balance Sheet Comparison

Quarterly Annual

Cash FlowAs of September 2,

2011:Operating Cash Flow (ttm):

13.10B

Levered Free Cash Flow (ttm):

3.02B

Side by Side ComparisonYear Ended

December 31, 2009

Year Ended

December 31, 2010

Current Assets $29,167

Current Liabilities

$2,747Working Capital $26,

420

Current Assets $41, 562 Current Liabilities

$ 9,996Working Capital $31, 566

Debt Ratio AnalysisYear Ended

December 31, 2009

Year Ended

December 31, 2010

Total Liabilities$4,493

Total Assets$40,497

Debt Ratio0.11

Total Liabilities$11,610

Total Assets$57,851

Debt Ratio0.20

Further AnalysisYear Ended

December 31, 2009

Year Ended

December 31, 2010

Days Sales in Receivables:

46 daysRate of Return /Net

Sales:35.44%

Price/Earnings Ratio:$26.38

Days Sales in Receivables:

47 daysRate of Return /Net

Sales:36.82%

Price/Earnings Ratio:

$21.30

Stock Price Trend

Earnings per Share

Pending Legal ActionPayPal / Ebay Sues

for Trade Secret Theft

Patent Pending Lawsuits; One

dismissedMicrosoft Sues Motorola Mobility over Android OS

Android Obtains Personal Information

via Location Tracking

Oracle Sues for 6.1 Billion

Recommendation

CONS:Pending

LitigationsState of

EconomyNo Dividends

RecommendationPROS:

Financial Analysis Reflects Continued Growth

Also Reflects Little Risk

Company is Able to Pay Debts

Large Revenues

ConclusionGood Investment, but Advise to Await

Resolution of Pending Litigations