Review your analysis. How could using vertical, horizontal, trend and ratio analysis change your view? Could it make your case stronger? Using the published financial statements, prepare an executive summary using vertical, horizontal and ratio analysis. Chose the analysis that gives the most accurate story of the company's results.

• Does seasonality factor into any of your analysis, if so, be sure to comment on how you handled in it in your analysis?
• What trends are you seeing?
• What issues/risks/opportunities?
• Is there something that needs to be investigated further?
• Is the competition seeing the same trend?

Would you invest in this company? Why/Why Not?

FACEBOOK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS die millions) houdited) Jun 30, Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 Sep 30, 2018 Dec 31, 2018 Mar 31, 2019 Jun 30. 2019 s S 5 S ,079 5 33,632 3,892 6,252 29,200 3.897 1.455 40,804 10,628 Cument assets: Cash and cash equivalents Marketable soucities Accounts receivable Prepaid expenses and other current assets Total 80s Property and equipment, net Operating lease right of use assets, net Intangible assets, ad Goodwill Other assets Total assets 7,2015 31.088 4,424 1.490 44.203 12,138 12,0825 31,874 5,115 1,341 50,412 16,211 11,552 30.757 5,590 1,934 49.833 9,637 31,569 6,058 1,883 49,147 21,112 10,0195 31,095 7,587 1.779 50,480 13,877 34,719 7,513 1.8.52 57,961 11,076 34,167 6,475 1.582 53,300 27,343 6,747 1.150 18,333 1,020 48,563 13,721 1,151 18,304 2,186 18,129 2.096 73.849 2,050 18,213 2,374 78,998 1,884 18,221 2.135 84.524 1,735 18,268 2.319 88.945 1,573 18,263 2.265 90.191 1.294 18,301 2.576 97.14 7,272 994 18,334 2.446 117,006 $ S $ $ S 92,452 $ $ 109.477 $ 323 S 383 S 419 S 5 6045 655 3805 390 5935 396 590 SO2 8205 541 278 Liabilities and stockholders' cquity Current liabilities: Accounts payable Partners payable Operating lease liabilities, aren Accrued expenses and other current liabilities Delenitvenue and deposits Total current limilities Operating lease liabilities, non-current Diber Liabilities Total liabilities 2,626 2,892 4,003 6R8 10,878 4.255 5.509 2,503 105 3,305 3.720 91 7,980 142 9,908 6,565 3,315 3,760 5,086 5,462 7,017 12,979 7,122 8.143 28,244 4,047 7,362 4,485 7,790 6.417 10177 0.239 11,325 6,239 10,909 6.648 12,110 | 6,190 13,207 22,961 42,352 Stockholders' equity: Common stock Additional parid-in capital Accumulated other comprehensive loss Retained aming Total stockholders' equity Total liabilities and stockholders' equity 39,291 (370) 27 560 66481 73.843 40,199 (2001) 31.209 21,208 78,998 40,584 (227) 33.990 74.347 84,524 41,134 (294) 36.780 41,822 (687) 38.237 42,906 1760) 41.981 84,127 97,314 43,533 (781) 43.764 44,277 (483) 44.968 38,767 80 142 92,452 88.945 s 90.291 109,477 S 117,006 Facebook Inc. Current ratio, long-term trends, calculation Current Ratio = Current assets Current liabilities Dec 31, 2018 7.19 50,480 7,017 Dec 31, 2017 12.92 48,563 3,760 Dec 31, 2016 11.97 34,401 2,875 Dec 31, 2015 11.25 21,652 1,925 Dec 31, 2014 9.60 13,670 1,424 Dec 31, 2013 11.88 13,070 1,100 Dec 31, 2012 10.71 11,267 1,052 Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28), 10-K (filing date: 2015-01-29), 10-K (filing date: 2014-01-31), 10-K (filing date: 2013-02-01). FACEBOOK, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME fi millor excefner sive ) Tree Months ded Sep 30, 2017 Dec 31, Three Months Ended Sep 30, 2018 2018 Dec 31. 2017 "Three Months Ended Mar 31. 2019 2017 2018 Reven 10.325 $ 12,972 5 1 1,966 S 13,727 S 16,914 5 1 5,077 S 16,846 1.411 2.816 307 2,214 2,523 1,919 2,657 L'osts and expenses! L'ost of revenue Research and development Marketing and sales General and administrative Totalcons and expenses 2.55 3,115 2.052 1,170 1.124 1.K55 2.467 2, 2,414 2,238 1,345 757 0,517 5.206 5.420 7.946 11.700 12,200 lace from operations 5.122 7352 3,449 3.13 5,761 3,317 4,626 165 7.971 4,832 5.912 02891 15911 13.190 Interest and other income, et Income before movision for income taxes Frovision for income taxes Net income Less Net income tributable to participating securities Net Income attributable to Class A and Class B common stockholders 5,510 1992 1088 3.1 4.704 S 4266 S 4,987 S 3,106 S 3,137568252 .429 2 .616 Warnines per share attributable te Class A and Chess Brommon stockholders S 4 L 2 $ $ S .32 .02 $ 1.59 $ 1.47 1.4 1223 169 1,26 S 174 S 1,16 .00 2.35 0.00 0.85 0.92 091 S S commen Weighted average shares used to compute earnings per share attributable to Class A and Claw stockholders 2,883 2.904 2.956 2.872 2,855 2,907 2,931 2,906 2,9-15 2,850 2.859 Diluted 2,930 2.913 2.885 2.195 50 S 36 S 776 Share-based compensation expense included in costs and expenses Cost of revenue Research and development Marketing and sales General and administrative Total share-based compensation expense 1,032 S 1.010 S 814 S 935 S 1,186 S 1,010 3 971 1,010 S 1,303 FACEBOOK, INC. CONDENSED CONSOLIDATED BALANCE SHEETS die millions) houdited) Jun 30, Jun 30, 2017 Sep 30, 2017 Dec 31, 2017 Mar 31, 2018 Sep 30, 2018 Dec 31, 2018 Mar 31, 2019 Jun 30. 2019 s S 5 S ,079 5 33,632 3,892 6,252 29,200 3.897 1.455 40,804 10,628 Cument assets: Cash and cash equivalents Marketable soucities Accounts receivable Prepaid expenses and other current assets Total 80s Property and equipment, net Operating lease right of use assets, net Intangible assets, ad Goodwill Other assets Total assets 7,2015 31.088 4,424 1.490 44.203 12,138 12,0825 31,874 5,115 1,341 50,412 16,211 11,552 30.757 5,590 1,934 49.833 9,637 31,569 6,058 1,883 49,147 21,112 10,0195 31,095 7,587 1.779 50,480 13,877 34,719 7,513 1.8.52 57,961 11,076 34,167 6,475 1.582 53,300 27,343 6,747 1.150 18,333 1,020 48,563 13,721 1,151 18,304 2,186 18,129 2.096 73.849 2,050 18,213 2,374 78,998 1,884 18,221 2.135 84.524 1,735 18,268 2.319 88.945 1,573 18,263 2.265 90.191 1.294 18,301 2.576 97.14 7,272 994 18,334 2.446 117,006 $ S $ $ S 92,452 $ $ 109.477 $ 323 S 383 S 419 S 5 6045 655 3805 390 5935 396 590 SO2 8205 541 278 Liabilities and stockholders' cquity Current liabilities: Accounts payable Partners payable Operating lease liabilities, aren Accrued expenses and other current liabilities Delenitvenue and deposits Total current limilities Operating lease liabilities, non-current Diber Liabilities Total liabilities 2,626 2,892 4,003 6R8 10,878 4.255 5.509 2,503 105 3,305 3.720 91 7,980 142 9,908 6,565 3,315 3,760 5,086 5,462 7,017 12,979 7,122 8.143 28,244 4,047 7,362 4,485 7,790 6.417 10177 0.239 11,325 6,239 10,909 6.648 12,110 | 6,190 13,207 22,961 42,352 Stockholders' equity: Common stock Additional parid-in capital Accumulated other comprehensive loss Retained aming Total stockholders' equity Total liabilities and stockholders' equity 39,291 (370) 27 560 66481 73.843 40,199 (2001) 31.209 21,208 78,998 40,584 (227) 33.990 74.347 84,524 41,134 (294) 36.780 41,822 (687) 38.237 42,906 1760) 41.981 84,127 97,314 43,533 (781) 43.764 44,277 (483) 44.968 38,767 80 142 92,452 88.945 s 90.291 109,477 S 117,006 Facebook Inc. Current ratio, long-term trends, calculation Current Ratio = Current assets Current liabilities Dec 31, 2018 7.19 50,480 7,017 Dec 31, 2017 12.92 48,563 3,760 Dec 31, 2016 11.97 34,401 2,875 Dec 31, 2015 11.25 21,652 1,925 Dec 31, 2014 9.60 13,670 1,424 Dec 31, 2013 11.88 13,070 1,100 Dec 31, 2012 10.71 11,267 1,052 Based on: 10-K (filing date: 2019-01-31), 10-K (filing date: 2018-02-01), 10-K (filing date: 2017-02-03), 10-K (filing date: 2016-01-28), 10-K (filing date: 2015-01-29), 10-K (filing date: 2014-01-31), 10-K (filing date: 2013-02-01). FACEBOOK, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME fi millor excefner sive ) Tree Months ded Sep 30, 2017 Dec 31, Three Months Ended Sep 30, 2018 2018 Dec 31. 2017 "Three Months Ended Mar 31. 2019 2017 2018 Reven 10.325 $ 12,972 5 1 1,966 S 13,727 S 16,914 5 1 5,077 S 16,846 1.411 2.816 307 2,214 2,523 1,919 2,657 L'osts and expenses! L'ost of revenue Research and development Marketing and sales General and administrative Totalcons and expenses 2.55 3,115 2.052 1,170 1.124 1.K55 2.467 2, 2,414 2,238 1,345 757 0,517 5.206 5.420 7.946 11.700 12,200 lace from operations 5.122 7352 3,449 3.13 5,761 3,317 4,626 165 7.971 4,832 5.912 02891 15911 13.190 Interest and other income, et Income before movision for income taxes Frovision for income taxes Net income Less Net income tributable to participating securities Net Income attributable to Class A and Class B common stockholders 5,510 1992 1088 3.1 4.704 S 4266 S 4,987 S 3,106 S 3,137568252 .429 2 .616 Warnines per share attributable te Class A and Chess Brommon stockholders S 4 L 2 $ $ S .32 .02 $ 1.59 $ 1.47 1.4 1223 169 1,26 S 174 S 1,16 .00 2.35 0.00 0.85 0.92 091 S S commen Weighted average shares used to compute earnings per share attributable to Class A and Claw stockholders 2,883 2.904 2.956 2.872 2,855 2,907 2,931 2,906 2,9-15 2,850 2.859 Diluted 2,930 2.913 2.885 2.195 50 S 36 S 776 Share-based compensation expense included in costs and expenses Cost of revenue Research and development Marketing and sales General and administrative Total share-based compensation expense 1,032 S 1.010 S 814 S 935 S 1,186 S 1,010 3 971 1,010 S 1,303