1) Provide a brief description, in your own words, of how does Alphabet (Google’s holding company) earns a profit. What are its value drivers?
2) Find a reference group’s ratios and compare them to your company’s ratios. Briefly describe how Alphabets ratio is the same or different.
3) Perform a duPont decomposition and summarize Alphabet’s results. ((NI/Sales) X (Sales/Assets) X (Assets/Eq.) = (NI/Equity))
Sample Solution
