Let's analyze the Q2 2024 earnings for Google (GOOG), Microsoft (MSFT), Nvidia (NVDA), and Apple (AAPL). We will look at key financial metrics such as revenue, net income, cash flow, profitability, debt, and other relevant factors.
1. Google (GOOG)
- Revenue: $84.742 billion
- Net Income: $23.619 billion
- Operating Income: $27.425 billion
- EBITDA: $31.133 billion
- Gross Profit Margin: 58.1%
- Operating Margin: 32.36%
- Net Profit Margin: 27.87%
- Total Assets: $414.77 billion
- Total Liabilities: $114.017 billion
- Total Equity: $300.753 billion
- Current Ratio: 2.08
- Free Cash Flow: $13.451 billion
- Market Cap: $2.193 trillion
- Price to Earnings Ratio (TTM): 25.03
- Price to Sales Ratio (TTM): 6.68
Summary: Google shows strong revenue growth and profitability with a solid net profit margin. The current ratio indicates good liquidity, and the free cash flow is robust, suggesting strong cash generation.
2. Microsoft (MSFT)
- Revenue: $62.02 billion
- Net Income: $21.87 billion
- Operating Income: $27.032 billion
- EBITDA: $32.991 billion
- Gross Profit Margin: 68.36%
- Operating Margin: 43.59%
- Net Profit Margin: 35.26%
- Total Assets: $470.558 billion
- Total Liabilities: $232.29 billion
- Total Equity: $238.268 billion
- Current Ratio: 1.22
- Free Cash Flow: $9.108 billion
- Market Cap: $3.036 trillion
- Price to Earnings Ratio (TTM): 36.80
- Price to Sales Ratio (TTM): 13.35
Summary: Microsoft demonstrates excellent profitability with a high net profit margin and operating margin. However, its current ratio is lower than Google's, indicating slightly less liquidity. The free cash flow is solid, but the high price-to-earnings ratio suggests it may be overvalued relative to earnings.
3. Nvidia (NVDA)
- Revenue: $30.04 billion
- Net Income: $16.599 billion
- Operating Income: $18.642 billion
- EBITDA: $19.075 billion
- Gross Profit Margin: 75.15%
- Operating Margin: 62.06%
- Net Profit Margin: 55.26%
- Total Assets: $85.227 billion
- Total Liabilities: $27.07 billion
- Total Equity: $58.157 billion
- Current Ratio: 4.27
- Free Cash Flow: $19.024 billion
- Market Cap: $3.081 trillion
- Price to Earnings Ratio (TTM): 58.37
- Price to Sales Ratio (TTM): 32.13
Summary: Nvidia has outstanding profitability metrics, with the highest gross and net profit margins among the four companies. The current ratio indicates excellent liquidity, and the free cash flow is very strong. However, the high price-to-earnings ratio suggests it may be overvalued.
4. Apple (AAPL)
- Revenue: $90.753 billion
- Net Income: $23.636 billion
- Operating Income: $27.9 billion
- EBITDA: $30.736 billion
- Gross Profit Margin: 46.58%
- Operating Margin: 30.74%
- Net Profit Margin: 26.04%
- Total Assets: $337.411 billion
- Total Liabilities: $263.217 billion
- Total Equity: $74.194 billion
- Current Ratio: 1.04
- Free Cash Flow: $20.743 billion
- Market Cap: $2.812 trillion
- Price to Earnings Ratio (TTM): 28.41
- Price to Sales Ratio (TTM): 7.47
Summary: Apple has strong revenue and net income, but its profit margins are lower than those of Nvidia and Microsoft. The current ratio is low, indicating less liquidity compared to its peers. However, the free cash flow is substantial, and the market cap is impressive.
Overall Ranking
- Nvidia (NVDA): 5/5 - Exceptional profitability and liquidity metrics, despite a high valuation.
- Microsoft (MSFT): 4.5/5 - Strong profitability and solid cash flow, but slightly lower liquidity.
- Google (GOOG): 4/5 - Good revenue and profitability, with strong cash flow and liquidity.
- Apple (AAPL): 3.5/5 - Strong revenue and cash flow, but lower profit margins and liquidity compared to peers.
Conclusion
Each of these companies has its strengths and weaknesses. Nvidia stands out for its profitability, while Microsoft excels in overall performance. Google and Apple are solid but face challenges in liquidity and valuation.
Note: This analysis is not financial advice. Please conduct your own research before making any investment decisions.
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