On Jan. 31, search-engine king Google (NASDAQ:GOOG) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenues increased 67% to $3.21 billion, with a matching 67% increase in advertising revenues year over year.
  • Capital expenditures increased 127% to $1.9 billion for the fiscal year, with $367 million spent in the fourth quarter on IT infrastructure investments, including data centers, servers, and networking equipment. The company says it will continue the trend with "significant" capex in 2007.
  • Our Motley Fool CAPS community isn't too confident about Google, which rates one star out of five. Cruise over to CAPS, our interactive stock database, to read more than 975 community comments about Google's stock, and share your own thoughts.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$3,205.5

$1,919.1

67%

Net Profit

$1,030.7

$372.2

176.9%

EPS

$3.29

$1.22

169.7%

Diluted Shares

313.5

304.0

3.1%



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

60%

59.5%

0.5

Operating Margin

33.1%

29.7%

3.4

Net Margin

32.2%

19.4%

12.8

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + Marketable Securities

$11,243.9

$8,034.2

39.9%

Accounts Rec.

$1,322.3

$688.0

92.2%



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$211.2

$115.6

82.7%



Learn the ways of the balance sheet.

Cash Flow Highlights

FY 2006

FY 2005

Change

Cash From Ops.

$3,580.5

$2,459.4

45.6%

Capital Expenditures

$1,902.8

$838.2

127%

Free Cash Flow

$1,677.7

$1,621.2

3.5%



Find out why Fools always follow the money.

Related Companies:

  • Yahoo! (NASDAQ:YHOO)
  • Microsoft (NASDAQ:MSFT)
  • CNET (NASDAQ:CNET)

Related Foolishness:

Yahoo! is a Stock Advisor recommendation. Microsoft is an Inside Value pick. CNET is a Rule Breakers selection. Check out any of our investing newsletter services free for 30 days.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.