OPEN PLATFORMS
Yahoo* included these statements in its 2008 annual report:
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YAHOO! INC.
CONSOLIDATED STATEMENTS OF INCOME
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Years Ended December 31,
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2006
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2007
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2008
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Revenues
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|
|
|
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Cost of revenues
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$6,425,679
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$6,969,274
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$7,208,502
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Gross profit
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2,675,723
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2,838,758
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3,023,362
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3,749,956
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4,130,516
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4,185,140
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Operating expenses:
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Sales and marketing
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1,322,259
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1,610,357
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1,563,313
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Product development
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833,147
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1,084,238
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1,221,787
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General and administrative
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528,798
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633,431
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705,136
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Amortization of intangibles
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124,786
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107,077
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87,550
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Restructuring charges, net
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-
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-
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106,854
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Goodwill impairment charge
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-
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-
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487,537
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Total operating expenses
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2,808,990
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3,435,103
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4,172,177
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Income from operations
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940,966
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695,413
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12,963
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Other income, net
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157,034
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154,011
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82,838
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Income before provision for income taxes, earnings in
equity interests, and minority interests
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1,098,000
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849,424
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95,801
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Provision for income taxes
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458,011
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337,263
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262,717
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Earnings in equity interests
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112,114
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150,689
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596,979
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Minority interests in operations of consolidated
subsidiaries
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712
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2,850
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5,765
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Net income
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$751,391
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$660,000
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$424,298
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Net income per share basic
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$0.54
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$0.49
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$0.31
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Net income per share diluted
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$0.52
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$0.47
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$0.29
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Shares used in per share calculation basic
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1,388,741
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1,338,987
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1,369,476
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Shares used in per share calculation diluted
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1,457,686
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1,405,486
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1,400,101
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Stock-based compensation expense by function:
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Cost of revenues
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$6,621
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$10,628
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$13,813
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Sales and marketing
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155,084
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246,472
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182,826
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Product development
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144,807
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218,207
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178,091
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General and administrative
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118,418
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97,120
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63,113
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Restructuring expense reversals
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-
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-
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-30,236
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Total stock-based compensation expense
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$424,930
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$572,427
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$407,607
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YAHOO! INC.
CONSOLIDATED BALANCE SHEETS
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December 31,
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2007
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2008
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(In thousands, except par values)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$1,513,930
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$2,292,296
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Short-term marketable debt securities
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487,544
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1,159,691
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Accounts receivable, net of allowance of $46,521 and $51,600, respectively
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1,055,532
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1,060,450
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Prepaid expenses and other current assets
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180,716
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233,061
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Total current assets
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3,237,722
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4,745,498
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Long-term marketable debt securities
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361,998
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69,986
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Property and equipment, net
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1,331,632
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1,536,181
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Goodwill
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4,002,030
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3,440,889
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Intangible assets, net
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611,497
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485,860
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Other long-term assets
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503,945
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233,989
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Investments in equity interests
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2,180,917
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3,177,445
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Total assets
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$12,229,741
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$13,689,848
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Current liabilities:
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Accounts payable
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$176,162
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$151,897
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Accrued expenses and other current liabilities
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1,006,188
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1,139,894
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Deferred revenue
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368,470
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413,224
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Short-term debt
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749,628
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-
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Total current liabilities
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2,300,448
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1,705,015
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Long-term deferred revenue
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95,129
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218,438
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Capital lease and other long-term liabilities
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28,086
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77,062
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Deferred and other long-term tax liabilities, net
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260,993
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420,372
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Commitments and contingencies
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-
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-
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Minority interests in consolidated subsidiaries
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12,254
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18,019
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Stockholders' equity:
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Preferred stock, $0.001 par value, 10,000 shares authorized; none issued or outstanding
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Common stock, $0.001 par value; 5,000,000 shares authorized; 1,534,893 and 1,600,220 shares issued, respectively, and 1,330,828 and 1,391,560 shares outstanding, respectively
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1,527
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1,595
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Additional paid-in capital
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9,937,010
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11,548,393
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Treasury stock at cost, 204,065 and 208,660 shares, respectively
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5,160,772
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5,267,484
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Retained earnings
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4,423,864
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4,848,162
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Accumulated other comprehensive income
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331,202
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120,276
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Total stockholders' equity
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9,532,831
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11,250,942
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Total liabilities and stockholders' equity
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$12,229,741
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$13,689,848
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Required
a. Compute the following for 2009 and 2008:
1. Net profit margin
2. Total asset turnover (use year-end total assets)
3. Return on assets (use year-end total assets)
4. Operating income margin
5. Return on operating assets (use year-end operating assets).
6. Sales to fixed assets (use year-end operating assets)
7. Return on total equity (use year-end total equity)
8. Gross profit margin
b. Comment on the trends in (a)
1. Prepare a horizontal common-size consolidated statement of operations for 2006-2008. Use 2006 as the base.
2. Comment on the results in (1).