Comparing both Google and Amazon, Inc liquidity of short term assets, long term debt paying ability, and profitability:
- Would you invest your financial capital in Google or Amazon firm as a shareholder? Why or Why not?
- Would you invest your human and intellectual capital in Google or Amazon as an employee? Why or Why not?
You can also use Google and Amazon's most recent 10-Q Consolidated Balance Sheet to answer........
Amazon, Inc 1.07 3.66 Current Ratio 0.48879 Cash Ratio 3.46 Quick Ratio 0.28 0.84 Google Liquidity of Short Term Assets Current Ratio Cash Ratio Quick Ratio Long-Term Debt- Paying Ability Debt Ratio Debt-equity Ratio Times Interest Earned Profitability Net Income/Sales (Profit Margin) Net Income/Assets (ROA) Net Income/Shareholder Equity (ROE) 26% Debt Ratio 34% Debt-equity Ratio 0.23 Times Interest Earned 10.59% 35.91% 16.61% Net Income/Sales (Profit Margin) 2.50% Net Income/Assets (ROA) 3.36% Net Income/Shareholder Equity (ROE) 1.14% 3.98% AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2019 March 31, 2020 (unaudited) S s 27,201 22,091 18,857 17,836 36,092 18,929 20,497 20,816 96,334 72,705 25,141 14,754 16,314 225.248 85,985 77,779 26,279 14,739 16,456 221,238 s $ s s ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term lease liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 4) Stockholders' equity Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none Common stock, $0.01 par value: Authorized shares - 5,000 Issued shares - 521 and 522 Outstanding shares 498 and 499 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 47,183 32,439 8,190 87,812 39,791 23,414 12,171 40,056 30,791 8,864 79,711 40,300 23,437 12,518 5 (1,837) 33,658 (986) 31.220 62,060 225.248 5 (1,837) 35,412 (2,063) 33,755 65,272 221,238 S $ See accompanying notes to consolidated financial statements. Alphabet Inc. CONSOLIDATED BALANCE SHEETS (in millions, except share amounts which are reflected in thousands, and par value per share amounts) As of As of December 31, 2019 March 31, 2020 (unaudited) Assets Current assets: Cash and cash equivalents S 18,498 $ 19.644 Marketable securities 101,177 97,585 Total cash, cash equivalents, and marketable securities 119.875 117,229 Accounts receivable, net 25.328 21,825 Income taxes receivable, net 2,166 1.910 Inventory 999 889 Other current assets 4,412 5,165 Total current assets 152,578 147,018 Non-marketable investments 13.078 12,387 Deferred income taxes 721 730 Property and equipment, net 73.646 78.747 Operating lease assets 10,941 11,219 Intangible assets, net 1.979 1.840 Goodwill 20.624 20.734 Other non-current assets 2.342 2,748 Total assets S 275,909 s 273,403 Liabilities and Stockholders' Equity Current liabilities: Accounts payable S 5,561 S 4,099 Accrued compensation and benefits 8,495 5.650 Accrued expenses and other current liabilities 23.067 22.601 Accrued revenue share 5,916 4,982 Deferred revenue 1,908 1,938 Income taxes payable.net 274 913 Total current liabilities 45,221 40.189 Long-term debt 4.554 5,016 Deferred revenue, non-current 358 350 Income taxes payable, non-current 9.885 9.207 Deferred income taxes 1.701 2,079 Operating lease liabilities 10.214 10.476 Other long-term liabilities 2.534 2,427 Total liabilities 74,487 69.744 Commitments and Contingencies (Note 10) Stockholders' equity: Convertible preferred stock, $0.001 par value per share, 100.000 0 0 shares authorized: no shares issued and outstanding Class A and Class B common stock and Class C capital stock and additional paid-in capital. $0.001 par value per share: 15,000,000 shares authorized (Class A 9.000.000, Class B 3,000,000. Class C 3,000,000); 688,335 (Class A 299.828, Class B 46,441. Class o 50.552 53.688 342.066) and 683.972 (Class A 300,047. Class B 46,407. Class o 337.518) shares issued and outstanding Accumulated other comprehensive loss (1,232) (1.007) Retained earnings 152,122 151,068 Total stockholders' equity 201,442 203.659 Total liabilities and stockholders' equity S 275.909 S 273,403 See accompanying notes. Amazon, Inc 1.07 3.66 Current Ratio 0.48879 Cash Ratio 3.46 Quick Ratio 0.28 0.84 Google Liquidity of Short Term Assets Current Ratio Cash Ratio Quick Ratio Long-Term Debt- Paying Ability Debt Ratio Debt-equity Ratio Times Interest Earned Profitability Net Income/Sales (Profit Margin) Net Income/Assets (ROA) Net Income/Shareholder Equity (ROE) 26% Debt Ratio 34% Debt-equity Ratio 0.23 Times Interest Earned 10.59% 35.91% 16.61% Net Income/Sales (Profit Margin) 2.50% Net Income/Assets (ROA) 3.36% Net Income/Shareholder Equity (ROE) 1.14% 3.98% AMAZON.COM, INC. CONSOLIDATED BALANCE SHEETS (in millions, except per share data) December 31, 2019 March 31, 2020 (unaudited) S s 27,201 22,091 18,857 17,836 36,092 18,929 20,497 20,816 96,334 72,705 25,141 14,754 16,314 225.248 85,985 77,779 26,279 14,739 16,456 221,238 s $ s s ASSETS Current assets: Cash and cash equivalents Marketable securities Inventories Accounts receivable, net and other Total current assets Property and equipment, net Operating leases Goodwill Other assets Total assets LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable Accrued expenses and other Unearned revenue Total current liabilities Long-term lease liabilities Long-term debt Other long-term liabilities Commitments and contingencies (Note 4) Stockholders' equity Preferred stock, $0.01 par value: Authorized shares - 500 Issued and outstanding shares - none Common stock, $0.01 par value: Authorized shares - 5,000 Issued shares - 521 and 522 Outstanding shares 498 and 499 Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 47,183 32,439 8,190 87,812 39,791 23,414 12,171 40,056 30,791 8,864 79,711 40,300 23,437 12,518 5 (1,837) 33,658 (986) 31.220 62,060 225.248 5 (1,837) 35,412 (2,063) 33,755 65,272 221,238 S $ See accompanying notes to consolidated financial statements. Alphabet Inc. CONSOLIDATED BALANCE SHEETS (in millions, except share amounts which are reflected in thousands, and par value per share amounts) As of As of December 31, 2019 March 31, 2020 (unaudited) Assets Current assets: Cash and cash equivalents S 18,498 $ 19.644 Marketable securities 101,177 97,585 Total cash, cash equivalents, and marketable securities 119.875 117,229 Accounts receivable, net 25.328 21,825 Income taxes receivable, net 2,166 1.910 Inventory 999 889 Other current assets 4,412 5,165 Total current assets 152,578 147,018 Non-marketable investments 13.078 12,387 Deferred income taxes 721 730 Property and equipment, net 73.646 78.747 Operating lease assets 10,941 11,219 Intangible assets, net 1.979 1.840 Goodwill 20.624 20.734 Other non-current assets 2.342 2,748 Total assets S 275,909 s 273,403 Liabilities and Stockholders' Equity Current liabilities: Accounts payable S 5,561 S 4,099 Accrued compensation and benefits 8,495 5.650 Accrued expenses and other current liabilities 23.067 22.601 Accrued revenue share 5,916 4,982 Deferred revenue 1,908 1,938 Income taxes payable.net 274 913 Total current liabilities 45,221 40.189 Long-term debt 4.554 5,016 Deferred revenue, non-current 358 350 Income taxes payable, non-current 9.885 9.207 Deferred income taxes 1.701 2,079 Operating lease liabilities 10.214 10.476 Other long-term liabilities 2.534 2,427 Total liabilities 74,487 69.744 Commitments and Contingencies (Note 10) Stockholders' equity: Convertible preferred stock, $0.001 par value per share, 100.000 0 0 shares authorized: no shares issued and outstanding Class A and Class B common stock and Class C capital stock and additional paid-in capital. $0.001 par value per share: 15,000,000 shares authorized (Class A 9.000.000, Class B 3,000,000. Class C 3,000,000); 688,335 (Class A 299.828, Class B 46,441. Class o 50.552 53.688 342.066) and 683.972 (Class A 300,047. Class B 46,407. Class o 337.518) shares issued and outstanding Accumulated other comprehensive loss (1,232) (1.007) Retained earnings 152,122 151,068 Total stockholders' equity 201,442 203.659 Total liabilities and stockholders' equity S 275.909 S 273,403 See accompanying notes
