Since the launch of the Google Search engine, a paying version has been reserved for the enterprise, which allows firms' access to documents in the internal database of Google. Microsoft has now declared war on the famous search engine. It is a very profitable market and Gartner Group forecasts that it will be worth $500 million in 2010. Consequently, Microsoft will launch a new version of its own enterprises search engine, ?Share Point Portal' at the end of the year. Microsoft has underestimated the profitability of the activities focused on the Web for a long time. 80% of its revenues were generated from the sales of its famous operating system, Windows and its Office software. Microsoft has decided to raise a barrier between Google and the net surfers. Its objective is to rule over the web. However, we must not forget that Google is five times more famous than Microsoft with respect to public researches on the web. It has been established that one out of every two net surfers research information via Google.
[...] Furthermore, let us not forget that Google is five times more famous than Microsoft concerning public searches on the web. Indeed, one time out of two, net surfers research information, thanks to Google. It represented 2.6 billion researches in 2005, five times better than MSN Search, the search engine of Bill Gate's company. The key of this profitability lies in online advertisements. This market was estimated at 18.5 billion in 2005 and ZenithOptimedia forecasts that it will be worth $32 billion in 2008. [...]
[...] Overview of the Annual Income Statements items Outstanding Overview of the Annual Balance Sheets Deferred income tax Shareholders's equity Outstanding Profitability ratios of Google & Microsoft Net Profit Margin Ratio = Net income + interest/Revenues + / = A Net Profit Margin of means that for each dollar of sales that Google generates, it contributes 23.87 cents to its net income. We can conclude that the Net Profit Margin of Microsoft is better than the one of Google. Furthermore, the two companies have a good Net Profit Margin Ratio; consequently they make a lot of profit. [...]
[...] Liquidity Ratio of Google & Microsoft Current Ratio = Current assets/current liabilities / = This ratio allows companies to indicate that a firm has enough short term assets to cover short term liabilities. The objective is to have a current ratio between 1.2 and Indeed, if a company has more than it means that the company isn't investing excess assets. Contrary to this, companies which have a current ratio less than 1 don't have enough current assets to cover short term debts. [...]
[...] Microsoft has a ratio twice that of Google because of its high net income and its high equity. Payout Ratio = Dividends / Earnings / = This ratio represents the earnings paid out in dividends. The lower the ratio, the more secure the dividends. We can notice that the Payout ratio of Google is nonexistent. Indeed, this company has decided to keep profit and consequently doesn't distribute dividends in order to always have cash to invest or cover unexpected risks. [...]
[...] Google Talk Microsoft is incontestably the leader with 60% of the market shares contrary to Google Talk with 1%. Nevertheless, Google only launched this service recently while MSN Messenger has been used for several years. Digital library: The two firms cater to the same goal: digitize all the books of the planet. Furthermore, both have problems with copyrights. Presentation of Google Google was founded by Larry Page and Sergey Brin in 1998. The company is headquartered in Mountain View in California. [...]
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