Google Company Analysis
Prepared by Matt Decuir
Exhibit 6 – Historical Ratio Analysis
| Daily Activity Ratios | 2002 | 2003 | 2004 | 2005 | 2006 |
| Sales Per Day (SPD) | 1.20 | 4.02 | 8.74 | 16.82 | 29.05 |
| Cost of Sales Per Day (COSPD) | 0.36 | 1.71 | 3.99 | 7.05 | 11.58 |
| Cash Expense Per Day (CEPD) | 0.34 | 1.36 | 1.68 | 4.00 | 7.75 |
| Income Tax per day (ITPD) | 0.23 | 0.66 | 0.69 | 1.85 | 2.56 |
| Activity Ratios | |||||
| Days of cash on hand | 121.52 | 37.10 | 48.85 | 230.54 | 122.00 |
| Days of accounts recievable | 51.48 | 38.52 | 35.69 | 40.91 | 45.51 |
| Days of inventory on hand | - | - | - | - | - |
| Days of prepaid expenses | 69.61 | 51.95 | 148.79 | 69.72 | 61.08 |
| Days of accounts payable | 26.06 | 26.93 | 8.18 | 16.40 | 18.24 |
| Days of accrued expenses | 113.98 | 109.00 | 160.70 | 132.25 | 127.42 |
| Days of accrued taxes | 111.23 | 31.35 | 0.00 | 14.99 | 0.14 |
| Days of other CA expenses | 33.63 | 11.25 | 22.92 | 18.28 | 13.56 |
| Fixed asset turnover ratio | 8.16 | 7.79 | 8.42 | 6.38 | 4.43 |
| Total Asset turnover ratio | 1.53 | 1.68 | 0.96 | 0.60 | 0.57 |
| Equity turnover ratio | 2.34 | 2.43 | 1.09 | 0.65 | 0.62 |
| Liquidity Ratios | |||||
| Current Ratio | 2.59 | 2.38 | 7.91 | 12.08 | 10.00 |
| Quick Ratio | 2.59 | 2.38 | 7.91 | 12.08 | 10.00 |
| Cash Ratio | 1.63 | 0.63 | 1.25 | 5.20 | 2.72 |
| Leverage Ratios | |||||
| Funded Debt Ratio | - | - | - | - | - |
| Total Debt Ratio | 0.35 | 0.31 | 0.12 | 0.08 | 0.08 |
| Equity Multiplier | 1.53 | 1.45 | 1.13 | 1.09 | 1.08 |
| Times Interest Earned (TIE) | 119.30 | - | - | - | - |
| Profit Ratios | |||||
| Gross profit margin | 70.1% | 57.3% | 54.3% | 58.1% | 60.2% |
| Operating profit margin | 42.4% | 23.4% | 35.1% | 34.3% | 33.5% |
| Net profit margin | 22.7% | 7.2% | 12.5% | 23.9% | 29.0% |
| Earnings Power of Assets | 65.0% | 39.3% | 33.8% | 20.5% | 19.2% |
| Return on assets | 34.7% | 12.1% | 12.0% | 14.3% | 16.7% |
| Return on equity | 53.1% | 17.5% | 13.6% | 15.6% | 18.1% |