| Trand Analys= is of Balance | Trend Analys= is of Income | Common Size = of Balance | Common Size = of Income | References |
| All doll= ars are in thousands | ||||||||
| December 31, 2005 | December 31, 2004 | December 31, 2003 | December 31, 2002 | |||||
| 84% | 573% | |||||||
| Current Assets | $ 3,449,533.00 | 1109% | $4,090,475.00 | 1315% | $ 713,539.00 | 229% | $ 310,972.00 | 100% |
| Property, Plant & Equipment | $ &nbs= p; 697,522.00 | 188% | $ 531,696.00 | 143% | $ 449,512.00 | 121% | $ 371,272.00 | 100% |
| Other Assets | $ &nbs= p; 57,192.00 | 33% | $ 242,029.00 | 139% | $ 247,539.00 | 142% | $ 174,020.00 | 100% |
| Total Assets | $10,831,834.00 | 388% | $9,178,201.00 | 329% | $5,931,654.00 | 213% | $2,790,181.00 | 100% |
| Current Liabilities | $ 1,204,052.00 | 292% | $1,180,70= 7.00 | 287% | $ 707,796.00 | 172% | $ 411,814.00 | 100% |
| Long-term Liabilities | $ 749,995.00 | 74999500% | $ 750,000.00 | 75000000% | $ 750,000.00 | 75000000% | $ &nbs= p; 1.00 | 100% |
| Contributed Capital | $ &nbs= p; 67,792.00 | 6779200% | $ &nbs= p; 65,875.00 | 6587500% | 0% | <= span style=3D'mso-spacerun:yes'> $ &nbs= p; 1.00 | 100% | |
| 1287% | 464% | 100% | ||||||
| Retained Earnings | $ 2,966,16= 9.00 | 39586% | $ 1,069,939.00 | 14279% | $ 230,387.00 | 3075% | $ &nbs= p; (7,493.00) | 100% |
| Other Stockholders’ Equity | #DIV/0! | #DIV/0! | #DIV/0! | #DIV/0! | ||||
| Total Liabilities & Stockholders Equity | $10,831,834.00 | 388% | $9,178,20= 1.00 | 329% | $5,931,65= 4.00 | 213% | $2,790,18= 1.00 | 100% |
| $ 8,556,41= 5.00 | $ 7,101,446.00 | $ 4,363,490.00 | $ 2,262,270.00 | |||||
| profit per $1 | $ &nbs= p; 0.175 | $ &nbs= p; 0.091 | $ &nbs= p; 0.040 | $ &nbs= p; 0.015 | ||||
| revenue to assets | $ &nbs= p; 0.18 | |||||||
| roe | $ &nbs= p; 0.18 | |||||||
| financial leverage | $ &nbs= p; 1.27 | $ &nbs= p; 1.29 | $ &nbs= p; 1.36 | $ &nbs= p; 1.23 | ||||
| By looking at the trend analysis= of the balance sheet, Yahoo! has experienced tremendous growth since 2002. Assets increased 10 fold while liabilities only tripled. Long-term liabilities were non-existent before 2003, since then, long-term debt remained constant at $750 million. Finally, management started to invest = back into the company in 2003. | ||||||||
| All doll= ars are in thousands | |||||||||
| December 31, 2005 | December 31, 2004 | December 31, 2003 | December 31, 2002 | ||||||
| 147% | 220% | ||||||||
| Net Operating Revenues | $5,257,668.00 | 552% | $3,574,517.00 | 375% | $1,625,097.00 | 171% | $953,067.00 | 100% | |
| Cost of Goods Sold | |||||||||
| $2,096,20= 1.00 | 1287% | $1,342,338.00 | 824% | $ 370,092.00 | 227% | $162,881.00 | 100% | ||
| Gross Profit | $3,161,467.00 | 400% | $2,232,179.00 | 282% | $1,255,005.00 | 159% | $790,186.00 | 100% | |
| Operating Expenses | = | ||||||||
| $2,053,74= 2.00 | 293% | $1,543,598.00 | 220% | $ 959,339.00 | 137% | $701,998.00 | 100% | ||
| Income from Operations | = | ||||||||
| $1,107,72= 5.00 | 1256% | $ 688,581.00 | 781% | $ 295,666.00 | 335% | $ 88,188.00 | 100% | 1045% | |
| Other Revenues and Expenses | $1,435,857.00 | 2072% | $ 496,443.00 | 717% | $ 47,506.00 | 69% | $ 69,287.00 | 100% | 289% |
| Income from Continuing Operations before Tax | $2,543,582.00 | 1427% | $1,185,024.00 | 665% | $ 343,172.00 | 193% | $178,225.00 | 100% | |
| Tax Expense | $ 767,816.00 | 1077% | $ 437,966.00 | 614% | $ 147,024.00 | 206% | $ 71,290.00 | 100% | |
| Income from Continuing Operations | $1,775,766.00 | 1661% | $ 747,058.00 | 699% | $ 196,148.00 | 183% | $106,935.00 | 100% | |
| Nonrecurring Items | |||||||||
| $ |
$ &nbs= p; - | $ &nbs= p; - | $ &nbs= p; - | ||||||
| Net Income (Loss) | = ; | ||||||||
| $1,896,230.00 | 4429% | $ 839,553.00 | 1961% | $ 237,879.00 | 556% | $ 42,815.00 | 100% | ||
| 0.649616776 | |||||||||
| A quick glance at the trend analysis of the income sheet show steady growth= of the company. Revenues and profit have almost doubled every year since 200= 2. Whereas expenses have increased, the increase has been slower than profit= s, hence allowing profits to increase that much faster. As expected taxes ha= ve eaten away at the increases, but that is expected and planned for. Finall= y, "other" revenues have increased about 20 times 2002. Looking at= the past four years as a guide, the growth of Yahoo! has not waned at all, and the next couple of years should demonstrate the continued growth. |
| All doll= ars are in thousands | |||||||||
| December 31, 2005 | December 31, 2004 | December 31, 2003 | December 31, 2002 | ||||||
| Current Assets | $ 3,449,533.00 | 32% | $4,090,475.00 | 45% | $ 713,539.00 | 12% | $ 310,972.00 | 11% | |
| Property, Plant & Equipment | $ &nbs= p; 697,522.00 | 6% | $ 531,696.00 | 6% | $ 449,512.00 | 8% | $ 371,272.00 | 13% | |
| Other Assets | $ &nbs= p; 57,192.00 | 1% | $ 242,029.00 | 3% | $ 247,539.00 | 4% | $ 174,020.00 | 6% | |
| Total Assets | $10,831,834.00 | 100% | $9,178,201.00 | 100% | $5,931,654.00 | 100% | $2,790,181.00 | 100% | |
| Current Liabilities | $ 1,204,052.00 | 11% | $1,180,707.00 | 13% | $ 707,796.00 | 12% | $ 411,814.00 | 15% | |
| Long-term Liabilities | $ 749,995.00 | 7% | $ 750,000.00 | 8% | $ 750,000.00 | 13% | $ &nbs= p; - | 0% | |
| Contributed Capital | $ &nbs= p; 67,792.00 | 1% | $ &nbs= p; 65,875.00 | 1% | 0% | = $ &nbs= p; - | 0% | ||
| Retained Earnings | $ 2,966,16= 9.00 | 27% | $ 1,069,939.00 | 12% | $ 230,387.00 | 4% | $ &nbs= p; (7,493.00) | -0.3% | |
| Other Stockholders’ Equity | 0% | 0% | 0% | 0% | |||||
| Total Liabilities & Stockholders Equity | 100% | $9,178,201.00 | 100% | $5,931,654.00 | 100% | $2,790,181.00 | 100% | ||
| The Common size of the balance s= heet illustrates the constant growth of management retaining earnings. Long-te= rm liabilities have constantly decreased every year since it acquired long-t= erm debt. Current liabilities have remained in the preteens with changes of a couple of percentage times. Finally, current assets as a percentage of to= tal assets have increased over 20% since 2002. | |||||||||
| All doll= ars are in thousands | |||||||||
| December 31, 2005 | December 31, 2004 | December 31, 2003 | December 31, 2002 | ||||||
| Net Operating Revenues | $5,257,668.00 | 100% | $3,574,517.00 | 100% | $1,625,097.00 | 100% | $953,067.00 | 100% | |
| Cost of Goods Sold | <= /td> | ||||||||
| $2,096,201.00 | 40% | $1,342,338.00 | 38% | $ 370,092.00 | 23% | $162,881.00 | 17% | ||
| Gross Profit | $3,161,467.00 | 60% | $2,232,179.00 | 62% | $1,255,005.00 | 77% | $790,186.00 | 83% | |
| Operating Expenses | = | = | = | = ; | = | = ; | = | ||
| $2,053,742.00 | 39% | $1,543,598.00 | 43% | $ 959,339.00 | 59% | $701,998.00 | 74% | 35% | |
| Income from Operations | = | = | = | = | = | = | = | ||
| $1,107,725.00 | 21% | $ 688,581.00 | 19% | $ 295,666.00 | 18% | $ 88,188.00 | 9% | ||
| Other Revenues and Expenses | $1,435,857.00 | 27% | $ 496,443.00 | 14% | $ 47,506.00 | 3% | $ 69,287.00 | 7% | |
| Income from Continuing Operations before Tax | $2,543,582.00 | 48% | $1,185,024.00 | 33% | $ 343,172.00 | 21% | $178,225.00 | 19% | |
| Tax Expense | $ 767,816.00 | 15% | $ 437,966.00 | 12% | $ 147,024.00 | 9% | $ 71,290.00 | 7% | |
| Income from Continuing Operations | $1,77= 5,766.00 | 34% | $ 747,058.00 | 21% | $ 196,148.00 | 12% | $106,935.00 | 11% | |
| Nonrecurring Items | = | 0% | 0% | = | 0% | = | = | ||
| $ |
0% | $ &nbs= p; - | 0% | $ &nbs= p; - | 0% | $ &nbs= p; - | = | ||
| Net Income (Loss) | = | ||||||||
| $1,896,230.00 | 36% | $ 839,553.00 | 23% | $ 237,879.00 | 15% | $ 42,815.00 | 4% | ||
| The common size of the income statement for Yahoo! shows a couple = of compelling facts. First Gross profit has steadily decreased since 2002, y= et operating expenses have also decreased. This is one of the main reasons f= or the steady increase in retained earnings demonstrated in the trend analys= is of the balance sheet. Next, the other revenues and expenses has become a larger part of Yahoo!'s revenue generations. Until 2005, income from oper= ations consistently was the breadwinner of the company. Finally, the percentage = of net income to net revenues has constantly experiences low two-digit growth since 2002. |
| References: | ||||||||||||||||||
| = | ||||||||||||||||||
| 10-K 2004 Report. (2005, March 11). Yahoo Investor Relat= ions. Retrieved June 16, 2006 from http://yhoo.client.shareholder.com/EdgarDetail.cfm?CIK=3D1011006&FID= =3D1047469-04-5976&SID=3D04-00 | ||||||||||||||||||
| = | ||||||||||||||||||
| Yahoo! (2006). 2005 Annual Report. Sunnyvale, CA: Author. |