Inside Google’s Finances

If you’re curious about some of the financial numbers behind Google, look no further than this graphic from the website Masters In Finance. Surprisingly, while Google’s revenue in 2011 was $37.9 billion, it’s expenses were nearly $26.2 billion, only leaving a profit of about $9.7 billion. Not the steepest profit margin out there.

Inside Google's Wallet
Image compliments of Masters in Finance Degree Guide

So what do we chalk the low profit margin up to?

Well, $8.81 billion goes towards paying their ad partners. That’s a big chunk.

Another $13.19 billion goes towards salaries, electricity costs, transaction fees, hardware depreciation, etc.

And then $5.16 billion goes towards research and development.

$4.59 billion towards sales and marketing

(there’s obviously some overlap in these expenses, but they give you a sense of where Google’s priorities are on the spend side).

It will be interesting to see what Google does in the coming years to increase their profit margins.

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