As you know, a companys return on investment (or ROI) is the product of its margin and turnover. Financial analysts often compute and analyze a companys ROI by obtaining the required data from its annual report. Unfortunately, the analyst is usually unable to determine the precise amounts of the companys operating and nonoperating assets. Although this obstacle is a limitation, the information is still useful to some extent.

Search the Securities and Exchange Commissions EDGAR corporate filings data base at http://www.sec.gov/edgarhp.htm for the annual report on Form 10-K of each of the two companies listed below.

• Google Inc. (choose the one with the Standard Industrial Code (SIC) of 7370)

• Yahoo Inc. (choose the one with the SIC of 7373)

  Using data from the two most recent annual reports of these two companies, compute the margin, turnover, and ROI for each company for the two most recent fiscal years. After reviewing the ratios, briefly discuss each companys performance, and then compare and contrast the performances of the two companies.

• GOOGLE 10K Form :

• YAHOO 10K Form:

• 

d St Revenues Income from operations Net income from continuing operations Net income (loss) from discontinued operations Net income Net income (loss) per share of Class A and Class B common stock basic Continuing operations Discontinued operations Net income per share of Class A and Class B common stock basic Net income (loss) per share of Class A and Class B common stock-diluted Continuing operations Discontinued operations Net income per share of Class A and Class B common stock diluted Consolidated Balance Sheet Data: Cash, cash equivalents, and marketable securities Total assets Total long-term liabilities Total stockholders' equity 2010 2012 2013 (in millions, except per share amounts) 29,321 59,825 23,65 37,905 50,175 8.312 10.381 11.742 12.760 13.966 6,520 8,505 9,737 0,788 2,214 706 6,520 8,505 9,737 0,737 12,920 20.62 26.69 30.17 32.97 36.70 A0.00 0.00 0.00 (0.16) 2.12 38.82 20.62 26.69 30.17 32.8 20.4 26.3 29.76 32.46 36.05 0.00 A0.00 0.00 (0.15) 2.08 38.13 20.4 26.3 29.76 32.3 As of December 31, 2009 2010 2011 2012 2013 (in millions) 34,975 24,485 44,626 48,088 58,717 40,497 57,85 72,574 93,798 0,920 7,703 746 614 5,516 7,746 46, 241 171,715 87,309 36,004 58,145 d St Revenues Income from operations Net income from continuing operations Net income (loss) from discontinued operations Net income Net income (loss) per share of Class A and Class B common stock basic Continuing operations Discontinued operations Net income per share of Class A and Class B common stock basic Net income (loss) per share of Class A and Class B common stock-diluted Continuing operations Discontinued operations Net income per share of Class A and Class B common stock diluted Consolidated Balance Sheet Data: Cash, cash equivalents, and marketable securities Total assets Total long-term liabilities Total stockholders' equity 2010 2012 2013 (in millions, except per share amounts) 29,321 59,825 23,65 37,905 50,175 8.312 10.381 11.742 12.760 13.966 6,520 8,505 9,737 0,788 2,214 706 6,520 8,505 9,737 0,737 12,920 20.62 26.69 30.17 32.97 36.70 A0.00 0.00 0.00 (0.16) 2.12 38.82 20.62 26.69 30.17 32.8 20.4 26.3 29.76 32.46 36.05 0.00 A0.00 0.00 (0.15) 2.08 38.13 20.4 26.3 29.76 32.3 As of December 31, 2009 2010 2011 2012 2013 (in millions) 34,975 24,485 44,626 48,088 58,717 40,497 57,85 72,574 93,798 0,920 7,703 746 614 5,516 7,746 46, 241 171,715 87,309 36,004 58,145