Google Inc.’s Financial Results in 2021
Google is a large multinational American corporation that owns the world’s largest search engine. It indexes the most significant number of sites of all search engines involved in developing IT products, research, and sponsorship. Google is an influential business company with many products sold worldwide. Google maintains and develops a range of Internet services and products and primarily generates revenue from advertising through its Ads program. Over the past year, earnings from services sales increased by 41.21% and amounted to 257.49B (Alphabet Inc. Cl C. n.d.). At the same time, the cost of goods sold increased by 30.93% and led the company to receive 110.94B (Alphabet Inc. Cl C. n.d.). Moreover, Google’s net income was 76.03B, with the company recording an increase of 88.81% (Alphabet Inc. Cl C. n.d.). Thus, the past year has been successful for the company in terms of income and sales of goods.
Report the company does not provide funds received from the client during the year. However, the amount of revenue includes amortization of intangibles, gross income, depreciation, gross profit margin. Moreover, the company provides a report on SG&A expenses and income tax. All this adds up to the organization’s revenue for the year, including costs and taxes. Thus, it can be concluded that the company has a profitable business.
A profitable business is a project in which investments pay off in the long run. Moreover, the company provides such services and goods initially in demand in the market (Warren et al., 2019). The organization has an increased number of units sold and gross income from sales. Thus, all income received by the company due to sales shows high results. In addition, the company considers the cost of each sale, which does not exceed their income, which makes the business profitable.
Alphabet Inc. Cl C. (n.d.). MarketWatch. Web.
Warren, C., Jones, J.P., Tayler, W.B. (2019). Financial and Managerial Accounting (15th ed.). Boston: Cengage.