Google Case Study (Without Solutions)

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Corporate Bridge Group

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RCH OR



Total Liabilities 1,434 2,646

Stockholders’ equity:

Convertible preferred stock, $0.001 par value per share - -

ClassA and Class B common stock, $0.001 par value per share 0 0

Additional paid-in capital 11,883 13,241

Accumulated other comprehensive income 23 113 Retained earnings 5,133 9,335

Total stockholders’ equity 17,040 22,690

Total liabilities and stockholders’ equity 18,473 25,336

Solvency Ratios

Current ratio 10.0 8.5

Quick ratio 9.6 8.0

Cash ratio 8.6 7.0

Turnover Ratios

Receivables turnover 8.0 7.7

Payables turnover 20.0 23.6

Average receivables collection period 45.5 47.6

Average payment period 18.2 15.5

Cash Conversion Cycle 27 32

Marketable Securities as % of Sales 72.6% 49.0%

Prepaid revenue share, expenses and other assets as % of Sales 4.2% 0

Prepaid revenue share, expenses and other assets, non-current as 4.2% 0

Accrued compensation and benefits as % of COGS 8.3% 8.8%

Accrued expenses and other current liabilities as % of COGS 6.3% 7.0%

Accrued revenue share as % of COGS 8.8% 7.9%

Deferred revenue as % of Sales 1.0% 1.1%

Stock based compensation

Stock based compensation as % of Total Expense

Assumptions

Fixed Assets



r share amounts)

2008 2009 2010 2011 2012 2013 2014

8,657

7,189

15,846 - - - - - -

2,642

-

286

-

1,404

20,178 - - - - - -

434

-

85

5,234

997

4,840

31,768 - - - - - -

178

-

812

480

533

-

218

82

2,302 - - - - - -

30

890

13

294

Historical



3,529 - - - - - -

-

0

14,450

227 13,562

28,239 - - - - - -

31,768 - - - - - -

8.8 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!



8.2 #DIV/0! #DIV/0!

48.4 #DIV/0! #DIV/0!

44.2 #DIV/0! #DIV/0!

7.5 #DIV/0! #DIV/0!

37 #DIV/0! #DIV/0! - - - -

33.0% 0.0% 0.0%

0 0.0% 0.0%

0 0.0% 0.0%

9.4% #DIV/0! #DIV/0!

5.6% #DIV/0! #DIV/0!

6.2% #DIV/0! #DIV/0!

1.0% 0.0% 0.0%

- - - -

7.4% #DIV/0! #DIV/0!



- - - - -

10.8% 3.4% 13.7%

5.6% 5.2% 3.6%

15.2% 0.5% 3.6%

1.3% 1.2% 1.1%

0.7 #DIV/0! #DIV/0!

4.2 #DIV/0! #DIV/0!

0.8 #DIV/0! #DIV/0!

60.4% 100.0% 100.0%

30.4% 100.0% 100.0%

19.4% 0.0% 0.0%

15.0% #DIV/0! #DIV/0!

19.4% 0% 0%

68.6% #DIV/0! #DIV/0!

112.5% #DIV/0! #DIV/0!

15.0% #DIV/0! #DIV/0!

0 #DIV/0! #DIV/0!

0 #DIV/0! #DIV/0!

21 #DIV/0! #DIV/0!

27.8% #DIV/0! #DIV/0!



2015

-

-

-

-



-



Corporate Bridge Academy (www.educorporatebridge.com)

Google Inc.CONSOLIDATED STATEMENT OF INCOME

(In millions, except per share amounts)

2006 2007 2008

Revenues 10,605 16,594 21,796

Costs and expenses:

Cost of revenues (including stock-based 4,225 6,649 8,622

Research and development (including stock- 1,229 2,120 2,793

Sales and marketing (including stock-based 850 1,461 1,946

General and administrative (including stock-based 752 1,279 1,803

Total costs and expenses 7,055 11,510 15,164

Income from operations 3,550 5,084 6,632

Impairment of equity investments - - (1,095)

Interest and other income, net 461 590 316

Income before income taxes 4,011 5,674 5,853

Provision for income taxes 934 1,470 1,626

Net income 3,077 4,204 4,227

Net income per share of ClassA and Class B common

Basic 10.21 13.53 13.46

Diluted 9.94 13.29 13.31

Cash paid for interest 0.3 1.3 1.6

Cash paid for taxes 538 883 1224

-396 -588 -402

Vertical Analysis 2006 2007 2008

Revenues 100% 100% 100%

Costs and expenses:

Cost of revenues (including stock-based 40% 40% 40%

Research and development (including stock- 12% 13% 13%

Sales and marketing (including stock-based 8% 9% 9%

General and administrative (including stock-based 7% 8% 8%



Total costs and expenses 67% 69% 70%

Income from operations 33% 31% 30%

Impairment of equity investments 0% 0% -5%

Interest and other income, net 4% 4% 1%

Income before income taxes 38% 34% 27%

Provision for income taxes 23% 26% 28%

Net income 29% 25% 19%

Horizontal Analysis

Revenues 56% 31%

Costs and expenses:

Cost of revenues (including stock-based 57% 30%

Research and development (including stock- 73% 32%

Sales and marketing (including stock-based 72% 33%

General and administrative (including stock-based 70% 41%

Total costs and expenses 63% 32%

Income from operations 43% 30%

Impairment of equity investments

Interest and other income, net

Income before income taxes 41% 3%

Provision for income taxes 57% 11%

Net income 37% 1%



2009 2010 2011 2012 2013 2014 2015

23,651 29,321 - - - - -

2009 2010

100% 100% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

0% 0% 36% 36% 36% 36% 36%

0% 0% 13% 13% 13% 13% 13%

0% 0% 10% 10% 10% 10% 10%

0% 0% 8% 8% 8% 8% 8%








#DIV/0! #DIV/0! 21% 21% 21% 21% 21%


9% 24% -100% #DIV/0! #DIV/0! #DIV/0! #DIV/0!

-100% #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!












Google Inc.CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

Net income

Adjustments:

Depreciation and amortization of property and equipment

Amortization of intangible and other assets

Stock-based compensation expense

Excess tax benefits from stock-based award activities

Deferred income taxesImpairment of equity investments

Other

Changes in assets and liabilities, net of effects of acquisitions and divestiture:

Accounts receivable

Income taxes, net

Prepaid revenue share, expenses and other assets

Accounts payable

Accrued expenses and other liabilities

Accrued revenue share

Deferred revenue

Net cash provided by operating activities

Investing activities

Purchases of property and equipment

Purchases of marketable securities

Maturities and sales of marketable securities

Investments in non-marketable equity securities

Cash collateral received from securities lending

Investments in reverse repurchase agreements

Acquisitions, net of cash acquired and proceeds received from divestiture, and purchases of intangi

Net cash used in investing activities

Financing activities

Net proceeds (payments) from stock-based award activities

Excess tax benefits from stock-based award activities

Repurchase of common stock in connection with acquisitions

Proceeds from issuance of short-term debt



Repayment of short-term debt

Net cash provided by financing activities

Effect of exchange rate changes on cash and cash equivalents

Net increase in cash and cash equivalentsCash and cash equivalents at beginning of year

Cash and cash equivalents at end of year

Supplemental disclosures of cash flow information

Cash paid for taxes

Non-cash financing activity:

Fair value of common stock issued and vested options assumed in connection with acquisitions

aid for interest

$ 257 $ 1,336 $ 1,564

Cash paid for taxes

$ 537,702 $ 882,688 $ 1,223,98



2008 2009 2010 2011 2012 2013 2014 2015

4,227 - - -

1,212 1,240 1,067 -

288 284 329 -

1,120 1,164 1,376 -

(159) (90) (94)

(225) (268) 9 1,095 -

(32) (20) (12)

(334) (504) (1,129) -

626 217 102

(147) 262 (414) -

(212) 34 272 -

339 243 745 -

14 158 214 -

41 76 111 -

7,853 2,796 2,576 -

(2,359) (810) (4,018) -

(15,356) (29,139) (43,985) -

15,763 22,103 37,099

(47) (65) (320)

- - 2,361

- - (750)

(3,320) (108) (1,067) -

(5,319) (8,019) (10,680) -

(72) 143 294

159 90 94

- - (801)

- - 5,246



- - (1,783)

87 233 3,050 -

(46) 11 (19)

2,575 (4,980) (5,073) - 6,082 8,657 10,198 5,125

8,657 3,677 5,125 5,125

1,224

0




Google Inc.Revenue Built-up

(In millions, except per share amounts)

2005 2006 2007

A Google websites 3,377.10 6,332.80 10,624.70

yoy growth 88% 68%

B Google Network websites 2,687.90 4,159.80 5,787.90

yoy growth 55% 39%

Total advertising revenues 6,065 10,493 16,413

C Other revenues 73.6 112.3 181.4

yoy growth 53% 62%Total Revenues 6,139 10,605 16,594

yoy growth 73% 56%



2008 2009 2010 2011 2012 2013 2014 2015

14,414 15,723 19,444

36% 9% 24% 25% 25% 25% 25% 25%

6,715 7,166 8,792

16% 7% 23% 25% 25% 25% 25% 25%

21,129 22,889 28,236 0 0 0 0 0

667 762 1,085

268% 14% 42% 40% 40% 40% 40% 40%21,796 23,651 29,321 0 0 0 0 0

31% 9% 24% -100% #DIV/0! #DIV/0! #DIV/0! #DIV/0!

Google Case Study (Without Solutions)

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