Every publicly traded company has a link for investors on th

Every publicly traded company has a link for investors on their webpage where they have all their published financial statements. Try to find TWITTER’s 2015 and 2016 end of year Balance Sheet on the company webpage. This is a good exercise to find financial information of any company.

LINK: http://files.shareholder.com/downloads/AMDA2F526X/5886867028x0x927279/AC2897AE-A9F6-43A7-B15052300045809C/Q416_ShareholderLetter.pdf

Fill out the following table Current Assets Liabilities Net Working Capital Current Equity TWTR 2015 TWTR 2016 Identify the percentage change in these accounts from 2015 to 2016. Find the same numbers for Facebook. How do they compare? Knowing what has been introduced in lectures so far and the information you found, how would you assess financial health of Twitter versus Facebook?

Solution

Facebook

While twitter shows mild growth with an inconsitent growth in current liablilites facebook on the other hand has been growing at a vast rate and also their financials have no inconsistent growth. The business of facebook has grown more than one third in one financial year.

in thousands	Current Assets	Current Liability	Equity Shre Capital	Net working capital
TWTR 2015	4,381,792	506,039	4,368,047	3,875,753
TWTR 2016	4,652,196	584,021	4,604,935	4,068,175
% CHANGE	5.81%	13.35%	5.14%	4.73%