As you know, a company's return on investment (or ROI) is the product of its margin and turnover. Financial analysts often compute and analyze a company's ROI by obtaining the required data from its annual report. Unfortunately, the analyst is usually unable to determine the precise amounts of the company's operating and nonoperating assets. Although this obstacle is a limitation, the information is still useful to some extent.
Search the Securities and Exchange Commission's EDGAR corporate filings data base at https://www.sec.gov/edgarhp.htm for the annual report on Form 10-K of each of the two companies listed below.
Google Inc. (choose the one with the Standard Industrial Code (SIC) of 7370)
Yahoo Inc. (choose the one with the SIC of 7373)
Using data from the two most recent annual reports of these two companies, compute the margin, turnover, and ROI for each company for the two most recent fiscal years. After reviewing the ratios, briefly discuss each company's performance, and then compare and contrast the performances of the two companies.