Class Project Financial Management Final update

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Class Project Financial Management Final update

  1. 1. YAHOO! vs GOOGLE (YHOO vs GOOG) a WCUMBA Class Project – Financial Management by Erwin Sumargo
  2. 2. Yahoo! Company Profile <ul><li>Yahoo! Inc. ( http://www.yahoo.com ), ticker symbol: YHOO </li></ul><ul><li>701 First Avenue, Sunnyvale, CA 94089, USA </li></ul><ul><li>Phone: 408-349-3300, Fax: 408-349-3301, </li></ul><ul><li>Employees: 14.300 </li></ul><ul><li>Direct Investment: Yes </li></ul><ul><li>Divident Reinvestment: Yes </li></ul><ul><li>Index Membership: </li></ul><ul><ul><li>S&P 500 </li></ul></ul><ul><ul><li>S&P 1500 Super Comp </li></ul></ul><ul><ul><li>Nasdaq 100 </li></ul></ul><ul><li>Sector: Technology </li></ul><ul><li>Industry: Internet Information Provider </li></ul>
  3. 3. Yahoo! Company Profile (contd.) <ul><li>Yahoo! Inc. was founded in 1994 and is headquartered in Sunnyvale, California. </li></ul><ul><li>It provides Internet services to users, advertisers, publishers, and developers worldwide. </li></ul><ul><li>It offers online properties and services to users; and marketing solutions and tools to advertisers and publishers. </li></ul><ul><li>With operations in more than 30 countries, including 34% ownership of Yahoo Japan, Yahoo is one of the most popular Internet destinations in the world. </li></ul><ul><li>Advertising accounts for about 85% of sales. The remaining 15% comes from fees on premium services. </li></ul><ul><li>It has strategic partnerships with AT&T, Inc.; Verizon Communications, Inc.; BT Telecommunications PLC; Rogers Cable, Inc.; and Newspaper Consortium </li></ul>
  4. 4. Yahoo! Company Profile (contd.) <ul><li>Key Executives </li></ul><ul><ul><li>Mr. Jerry Yang (39), </li></ul></ul><ul><ul><li>Co-Founder, CEO, Chief Yahoo! and Exec. Director </li></ul></ul><ul><ul><li>Ms. Susan Decker (45), President </li></ul></ul><ul><ul><li>Mr. Blake Jorgensen , (48) Chief Financial Officer </li></ul></ul><ul><ul><li>Mr. Michael J. Callahan , (39) Exec. VP, General Counsel and Secretary </li></ul></ul><ul><ul><li>Mr. Michael A. Murray , (52) Chief Accounting Officer and Sr. VP of Financial </li></ul></ul>
  5. 5. Yahoo! Income Statement
  6. 6. Yahoo! Cash Flow
  7. 7. Yahoo! Balance Sheet
  8. 8. Yahoo! Growth
  9. 9. Yahoo! Profitability
  10. 10. Yahoo! Financial Health
  11. 11. Yahoo! Stock Chart
  12. 12. Google Company Profile <ul><li>Google Inc. ( http://www.google.com ), ticker symbol: GOOG </li></ul><ul><li>1600 Amphitheatre Parkway, Mountain View, CA 94043, USA </li></ul><ul><li>Phone: 650-253-0000, Fax: 650-253-0001 </li></ul><ul><li>Employees: 19.604 </li></ul><ul><li>Direct Investment: No </li></ul><ul><li>Divident Reinvestment: No </li></ul><ul><li>Index Membership: </li></ul><ul><ul><li>S&P 100 </li></ul></ul><ul><ul><li>S&P 500 </li></ul></ul><ul><ul><li>S&P 1500 Super Comp </li></ul></ul><ul><ul><li>Nasdaq 100 </li></ul></ul><ul><li>Sector: Technology </li></ul><ul><li>Industry: Internet Information Provider </li></ul>
  13. 13. Google Company Profile (contd.) <ul><li>Google, Inc. was founded in 1998 and is headquartered in Mountain View, California. </li></ul><ul><li>Google, Inc., a technology company, maintains index of Web sites and other online content for users, advertisers, Google network members, and other content providers. </li></ul><ul><li>Its automated search technology helps users to obtain instant access to relevant information from its online index. </li></ul><ul><li>The company’s solutions provide targeted advertising and Internet search solutions, as well as intranet solutions via an enterprise search appliance. </li></ul>
  14. 14. Google Company Profile (contd.) <ul><li>Google provides a free search engine for users around the world and generates revenue whenever a user clicks on a text ad displayed alongside the search results. This represents 90% of the company's net revenue. </li></ul><ul><li>The remaining 10% of net revenue is derived from text ads sold on content providers' Web sites. Google is also investing in new business lines including traditional media advertising, the mobile industry, and online software. </li></ul>
  15. 15. Google Company Profile (contd.) <ul><li>KEY EXECUTIVES </li></ul><ul><ul><li>Dr. Eric E. Schmidt Ph.D. , 53 Chairman, Chief Exec. Officer, Chairman of Exec. Committee, Chairman of Acquisition Committee and Chairman of Real Estate Committee </li></ul></ul><ul><ul><li>Dr. Larry Page , 35 Co-Founder, Pres of Products, Assistant Sec., Director, Member of Exec. Committee, Member of Acquisition Committee and Member of Real Estate Committee </li></ul></ul><ul><ul><li>Dr. Sergey Brin , 34 Co-Founder, Pres of Technology, Assistant Sec., Director, Member of Exec. Committee, Member of Acquisition Committee and Member of Real Estate Committee </li></ul></ul><ul><ul><li>Mr. Jonathan J. Rosenberg , 46 Sr. VP of Product Management </li></ul></ul><ul><ul><li>Dr. Robert Alan Eustace , 51 Sr. VP of Engineering & Research </li></ul></ul>
  16. 16. Google Income Statement
  17. 17. Google Cash Flow Report
  18. 18. Google Balance Sheet
  19. 19. Google Growth
  20. 20. Google Profitability
  21. 21. Google Financial Health
  22. 22. Google Stock Chart
  23. 23. YHOO vs. GOOG Stock Prices Chart from est. 2004 – Sept. 2008
  24. 24. Profitability Ratios 59.9 60.2 58.1 59.3 58.4 60.1 Gross Margin 30.6 33.5 32.9 10 14.6 21.1 Operating Margin 25.33 29.02 23.87 9.47 11.69 36.07 Net Margin 19.19 21.41 21.57 5.56 6.73 18.95 Return on Assets 21.16 23.26 23.73 7.06 8.48 24.21 Return on Equity 2007 2006 2005 2007 2006 2005 GOOG GOOG GOOG YHOO YHO YHOO
  25. 25. Leverage Ratios 1.12 1.08 1.09 1.26 1.26 1.29 Financial Leverage - - - - - - Capital Structure Leverage - - - - - - Common Equity Leverage 2007 2006 2005 2007 2006 2005 GOOG GOOG GOOG YHOO YHO YHOO
  26. 26. Solvency Ratios 25.9 23.3 31.6 39.7 41.7 30.2 Tax Rate - - - - - - Interest Coverage 8.5 10 12.1 1.6 1.7 1.8 Current Ratio 2007 2006 2005 2007 2006 2005 GOOG GOOG GOOG YHOO YHO YHOO
  27. 27. Asset Turnover Ratios 0.76 0.74 0.9 0.6 0.6 0.5 Asset Turnover 5.2 6.3 9.2 5.7 7.1 8.6 Fixed Asset Turnover - - - - - - Inventory Turnover 9.1 10.5 11.5 7 7.8 8.8 Receivables Turnover 2007 2006 2005 2007 2006 2005 GOOG GOOG GOOG YHOO YHO YHOO
  28. 28. Earnings Ratios 52.1 46.3 82.6 45.7 32.4 36.2 Price / Earning Ratio 33.7 98 243.8 0.47 0.52 1.28 Earning per share 2007 2006 2005 2007 2006 2005 GOOG GOOG GOOG YHOO YHO YHOO
  29. 29. Conclusion… <ul><li>Yahoo! & Google are two pillars that support the Internet industry, can’t imagine if one of them collapsed… </li></ul><ul><li>Even Yahoo! pioneered the industry, but Google, with it’s ingeniousity make higher profits, thereby increase it’s stock price marvelously </li></ul><ul><li>Yahoo!’s stock price is almost unchaged / maintain stability of almost 4 years… </li></ul><ul><li>Both of them are innovative, can be seen by various feature & facility they provide. </li></ul><ul><li>What about Microsoft? Will they ever buy Yahoo! ??? </li></ul>

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