Google and Yahoo are competitors in the Internet search engine business. Selected financial data for Google and
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1. Calculate the return on assets for both companies. Compare the ratios with those calculated for Apple and Dell in Illustration 11-21 .
2. Calculate the cash return on assets for both companies. Compare the ratios with those calculated for Apple and Dell in Illustration 11-22 .
3. Calculate the cash flow to sales ratio and the asset turnover ratio for both companies. Compare the ratios with those calculated for Apple and Dell in Illustrations 11-24 and 11-25. Are Google's and Yahoo's business strategies closer to Apple's or to Dell's?
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Related Book For
Financial Accounting
ISBN: 9780078110825
2nd Edition
Authors: J. David Spiceland, Wayne Thomas, Don Herrmann
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