Google Company Analysis

Prepared by Matt Decuir

Exhibit 2 – Common Size Analysis

Common Size Income Statement 2002 2003 2004 2005 2006
Sales 100.00% 100.00% 100.00% 100.00% 100.00%
Cost Of Goods Sold 29.92% 42.69% 45.71% 41.89% 39.84%
  Gross Profit 70.08% 57.31% 54.29% 58.11% 60.16%
Selling & Adminstrative & Depr. & Amort Expenses 27.65% 33.94% 19.18% 23.78% 26.68%
  Income After Depreciation & Amortization 42.43% 23.36% 35.12% 34.33% 33.48%
Non-Operating Income 0.00% 0.29% -14.73% 0.56% 4.35%
Interest Expense 0.35% 0.00% 0.00% 0.00% 0.00%
  Pretax Income 42.07% 23.65% 20.39% 34.89% 37.82%
Income Taxes 19.40% 16.44% 7.87% 11.02% 8.80%
  Net Income 22.67% 7.21% 12.51% 23.87% 29.02%
Depreciation Footnote
Income Before Depreciation & Amortization 49.02% 27.12% 75.29% 39.12% 38.87%
Depreciation & Amortization (Cash Flow) 6.59% 3.75% 4.66% 4.79% 5.39%
Income After Depreciation & Amortization 42.43% 23.36% 35.12% 34.33% 33.48%

Common Size Chart

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