Since Google is not a true product based company there is essentially no cost of goods sold figure. To substitute we took the operating income and devided it by the revenue. Based on this ratio we see that the trend for gross margin is also positive increasing from 20.07% in 2004 to 33.48% in 2006. This trend is good news for Google because companies with higher gross margins will have more money left over to spend on other business operations, such as research and development or marketing which is essential for businesses
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This trend is good news for Google because companies with higher gross margins will have more money left over to spend on other business operations, such as research and development or marketing which is essential for businesses
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