In the three months ended June 2006, Google's balance sheet showed a healthy current ratio of 11.3, which means that Google's current assets during that period were 11.3 times that of their current liabilities. In other words, for every $1.00 the company incurred in the form of current liabilities, they also acquired current assets worth $11.30. If the current ratio of Google threw up such a high figure in the second quarter, the other financial data relating to the company's performance in the same quarter were even more staggering.
It is not surprising for a company like Google to come up with figures like that, given the type, size and volume of their business and their immense goodwill in the market. They had a quick ratio of 11 times, a leverage ratio of 1.1 times, a receivables turnover ratio of 13.5 times, an assets turnover ratio of 1 time, a revenue to assets ratio of 0.6 times, a return on equity from total operations of 18.1 per cent, a return on invested capital of 18.1 per cent and a return on assets of 16.8 per cent.
It is not surprising for a company like Google to come up with figures like that, given the type, size and volume of their business and their immense goodwill in the market. They had a quick ratio of 11 times, a leverage ratio of 1.1 times, a receivables turnover ratio of 13.5 times, an assets turnover ratio of 1 time, a revenue to assets ratio of 0.6 times, a return on equity from total operations of 18.1 per cent, a return on invested capital of 18.1 per cent and a return on assets of 16.8 per cent.