The internet giant Google Inc (NASDAQ:GOOGL) has been working on various projects for a long time, some of which are never-heard-before. Even though the company has lost couple of its senior management executives recently, but that hasn’t affected its cash position at all. Reports claim that it will have more than $188 billion cash balance by 2019 if everything goes fine. Its existing CFO has announced retirement; hence, Google has to search who can handle its cash mountain effectively.
Recent Management Decisions:
Strong cash position of the company may be something Google can be proud of, but it has to take care of management issues to have a consistent and smooth run. As per the reports, Patrick Pichette, Chief Financial Officer, Google announced its retirement in the previous week. He stated that he would remain with the company unless Google finds his successor.
Pichette is known for managing the revenue received from Google against the heavy investments in some very ambitious projects like Face Computers and Robot Cars. Nobody could question his way of working and managing company’s finances, but things will become arduous once he leaves Google and decides to live his own life.
The biggest challenge in front of the next CFO will be to meet stakeholders’ expectations just like Pichette. The cash mountain of Google has been going up swiftly, and it will be good to see how the new CFO of this internet giant uses it. As per the reports, the current cash and market securities of Google are as much as $64 billion.
A bunch of analysts predict that Google may think about returning some of its cash to shareholders in the form of dividend and buy-back offers. One of the well-known analysts firm Cowen & Co. stated a few days back that Google could return around $11 billion annually to its shareholders.
Google Inc (NASDAQ:GOOGL) is expected to generate free cash flow of $129 billion over the next five years, which will take its cash balance to $188 (approx) billion by 2019. Google needs someone who knows how to use this cash in the best possible way.