How to read an income statement: Alphabet Inc case study

[@TheFinanceStoryteller]

Enjoyed this video? Then subscribe to the channel right now, and watch the related videos on how to read the balance sheet and the cash flow statement: kzbin.info/www/bejne/jny2gKatepKSbMU

[@matthewtschetter1953]

What is crazy is that videos that have "Millionaire lifestyle" as a title get millions of views, but actually sitting down to learn quality content like this video will only have thousands of views. Really shows that not many will actually put in the work. Excellent video.

[@TheFinanceStoryteller]

Thank you, Matt! I am pretty happy with my progress so far on my channel: 25K subscribers and 1.8 million views. There are certainly people out there that want to focus on solid in-depth content rather than sensationalism (both video creators and viewers), let's make it happen together and spread the word! P.S. I also have a balance sheet analysis and a cash flow statement analysis for you for the same company. :-) kzbin.info/www/bejne/hnqciWiPl8qelac

[@nikg8310]

Views don't always matter. If they did there was no point of having targeted advertisement through Google and Facebook. The future is of long tail.

[@hl3641]

Poor ppl always thought success r easy…

[@Bandzzcantfold]

There dumb they listen to financial gurus

[@LauraEllisTAB]

I agree to all the other comments: solid content; clear explanations; great time management. Liked it a lot. I will test how much "smarter" you made me in my assignment.

[@TheFinanceStoryteller]

Thank you very much for the kind words, Laura!!! :-)

[@genxiao8737]

Thank you for the videos, there are clear and technical. I will try to watch the rest of the case studies!

[@TheFinanceStoryteller]

Thank you for the kind words! Enjoy the video series!

[@unclechris1755]

Experienced, detailed and professional analysis. Two thumbs up! ! Would you please do the Alphabet Inc case study both on Balance Sheet and Cash Statement, so that the student viewers like me can have a full picture of a complete financial analysis of a real listed company.

[@TheFinanceStoryteller]

Thanks for the compliments, Chris! Please spread the word. :-) Alphabet Inc cash flow statement video nearly done, balance sheet will be up next.

[@TheFinanceStoryteller]

Alphabet Inc cash flow statement analysis: kzbin.info/www/bejne/oaCylZ1srLd9b68

[@TheFinanceStoryteller]

Alphabet Inc balance sheet analysis: kzbin.info/www/bejne/jny2gKatepKSbMU

[@unclechris1755]

Thanks a lot!

[@richardgordon]

Really excellent analysis! Thank you. Of course you deserve far more subscribers than you’ve got. But I guess this type of contents is way above the comprehension level of the vast number of people. (Which is actually good for the small minority of serious investors).

[@TheFinanceStoryteller]

Thanks for the kind words, Richard! I have recently done a financial comparison Amazon vs Google that I think you will enjoy as well: kzbin.info/www/bejne/hnqciWiPl8qelac

[@angelmaravilla4708]

First of all; man, this video is amazing. You're making contributions to change the life of people sitting in chairs thousand miles away. I had a little doubt, hope you can help me: In the 9:43 sec, you declare that “Gross Profit Margin from Google Properties Revenues” is more than 60%. My doubt is: “Other Cost of Revenues” ($23,911) represent the “Google Properties Cost of Revenues”? (9:02)

[@TheFinanceStoryteller]

Thank you for the kind words, Ángel! It's been 4 years since I made that video, so I don't recall the full picture anymore, and I currently don't have the capacity to reconstruct the story.. Best thing I can do right now is copy in the part of the script that relates to that section: Cost of revenues is discussed on page 38. The $45.6 billion in 2017 is split between Traffic Acquisition Costs of $21.7 billion, and other cost of revenues of $23.9 billion. Other cost of revenues consists of content acquisition costs, data center and other operations costs, including depreciation, compensation expenses, energy, bandwidth, and other equipment costs, cost of sales of hardware devices, etc. Traffic Acquisition Costs are split between TAC to distribution partners (for example websites and apps that use google.com as the default search in browsers and toolbars), and TAC to Google Network members. The payout rate for Google Network members (websites that run advertisements served by Google) is actually 72%, meaning that Google gets to keep only 28% of that revenue. So that’s a very different business than the 60+% margins on Google properties revenues.

[@angelmaravilla4708]

@@TheFinanceStoryteller thanks for the help man! Wish you godd vibes and the same energy for future videos 👌

[@TheFinanceStoryteller]

Thanks!!! Next video to work on and publish will be "Reading financial statements", covering highlights of income statement, balance sheet and cash flow statement (plus the more "optional" statements) in one and the same video. Just trying to figure out which company would be best for the case study. Alphabet/Google has some very specific aspects to it, I need to come up with a more "generic" one.

[@angelmaravilla4708]

@@TheFinanceStoryteller as a follow up process it would be great to visualize the performance of Alphabet; the 5-year gap would increase interest and curiosity in the analysis of the results (and in a few months they will carry out a stock split, so it will be a trend bomb on youtube👌) Anyway, anyhow, I will be attentive to your future works🤙

[@jamesperry3837]

*Great! But not easy to grasp in one listen.* _Thank u that was xcellent summarization._

[@TheFinanceStoryteller]

Thank you, James! Yes, that might have been a bit too much information in one video. I remember that this was a tough nut to crack making the video. ;-)

[@ashwinudapikar3290]

Thank You for this beautiful analysis of the Income Statement!

[@TheFinanceStoryteller]

Thank you for the kind words, Ashwin! I have a few more related videos on my Finance Storyteller channel: income statement analyses of other companies, and the balance sheet and cash flow statement analysis of Alphabet Inc.

[@kirthikraja6889]

Clear simple explanation in your videos helps me a lot. As I said before I'll keep on following you.

[@TheFinanceStoryteller]

Great to hear, Kirthik! Thank you for watching.

[@hongboguo2956]

What a great video! Simple and effective.

[@TheFinanceStoryteller]

Glad you enjoyed it! Love to hear that. :-)

[@alwaysarafath]

This channel is gold ❤

[@TheFinanceStoryteller]

Thank you! That is wonderful to hear. Please share the word with friends and colleagues.

[@alwaysarafath]

Already did !!

[@TheFinanceStoryteller]

Excellent. 🙂

[@williamnicholson5119]

Thank you for the excellent materials.

[@TheFinanceStoryteller]

My pleasure, William! Thank you for watching and commenting. Please spread the word!

[@ephraimc2043]

These are well put clips ,made very simple to understand for learner's, Congratulations. Am just waiting for a Bank's PL analysis put in a bigger picture like other clips! Kudos!!

[@TheFinanceStoryteller]

Thank you, Ephraim! It's on my list, I am trying to figure out what the "main message" of that video would be.

[@bumba143]

I really liked your content!! great videos keep it up! I've subscribed and hope to see more content in the future!!!

[@TheFinanceStoryteller]

Thank you very much, Siddhatha! I plan to make a lot of videos in 2020, and will offer memberships as well which give you access to member-only live streams.

[@rajashekara1]

Great Video and explained well, Thank you.

[@TheFinanceStoryteller]

Happy to hear that, Rajashekar! I hope you will enjoy the companion videos about Alphabet Inc's balance sheet and cash flow statement as well (together they give a "full picture"): kzbin.info/www/bejne/jny2gKatepKSbMU

[@kameshthukkaram]

Thanks for the excellent explanation. Hats off!

[@TheFinanceStoryteller]

You're welcome! Nice to hear you enjoyed it. Here's one more example kzbin.info/www/bejne/oKDZfIqXit2Xo7c

[@hl3641]

Great video, how ab more on what item/s and why to focus on before make an investment decision? .Thx

[@TheFinanceStoryteller]

Thanks for the kind words. See my video on financial analysis for the most important items to focus on before making an investment decision: kzbin.info/www/bejne/oHiQoIuuapmkrqc

[@techhelper3192]

Great video, just watched and keep it up G

[@TheFinanceStoryteller]

Thank you very much!

[@lamdad75]

Thank you for your efforts

[@TheFinanceStoryteller]

You're welcome, Lamy! :-)

[@Goodluck-iv3jw]

thank you for sharing

[@TheFinanceStoryteller]

My pleasure!

[@colmab7595]

This is great thank you

[@TheFinanceStoryteller]

You're welcome! Did you watch the companion videos on the balance sheet and cash flow statement of Alphabet Inc as well? Link to the balance sheet video kzbin.info/www/bejne/jny2gKatepKSbMU and link to the cash flow video kzbin.info/www/bejne/oaCylZ1srLd9b68

[@hoangdaohtd]

Useful. Thank you

[@TheFinanceStoryteller]

You're welcome! I have also done a balance sheet and cash flow statement analysis for the same company, as well as an income statement analysis for Walmart that you might like.

[@hcp0scratch]

A++++!

[@TheFinanceStoryteller]

Wow, the ratings keep getting better! ;-) Have you seen the related videos on Alphabet Inc's balance sheet and cash flow statement as well: kzbin.info/www/bejne/jny2gKatepKSbMU

[@shivjayvolvloikar]

Can you tell me, what was that one time tax for fy17

[@TheFinanceStoryteller]

From the company's 10-K annual report: The U.S. Tax Cuts and Jobs Act (Tax Act) was enacted on December 22, 2017 and introduces significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduces the U.S. statutory tax rate from 35% to 21% and creates new taxes on certain foreign-sourced earnings and certain related-party payments, which are referred to as the global intangible low-taxed income tax and the base erosion tax, respectively. In addition, in 2017 we were subject to a onetime transition tax on accumulated foreign subsidiary earnings not previously subject to U.S. income tax. One-time transition tax The Tax Act requires us to pay U.S. income taxes on accumulated foreign subsidiary earnings not previously subject to U.S. income tax at a rate of 15.5% to the extent of foreign cash and certain other net current assets and 8% on the remaining earnings. We recorded a provisional amount for our one-time transitional tax liability and income tax expense of $10.2 billion. We have recorded provisional amounts based on estimates of the effects of the Tax Act as the analysis requires significant data from our foreign subsidiaries that is not regularly collected or analyzed.

[@jamalawais1306]

Dude billions of dollars and so much hunger in the world y???

[@jamalawais1306]

Wth are they gonna do with this huge amount of money they can never finish it their whole life