Analysis of LinkedIn - Research Paper Example
Current ratio- The firm’s current ratio is increasing and getting stronger as the year progresses. A ratio of above one indicates the firm can settle its short-term obligation within a financial year and still conduct its operation effectively. This is proven by the networking capital across the year which increases across the year. In the year 2012, the ratio was 2.45 it rose to 4.7 in the year 2014. Return on Assets- The value of assets owned by LinkedIn Corporation is increasing across the financial years that have been analyzed above. However, the return on this asset is decreasing. This simply means that the assets the firm have invested on are not been utilized to the maximum or the resources are in surplus. In the year 2014, the return was in the negative figure because the firm had incurred losses. The revenue generated across the three years was increasing as well as the costs for revenue generation. However, the rate at which the cost of revenue was increasing was higher than that of revenue being generated.
