The earnings per share have increased from 14.89 in 2011 to 19.08 in the year 2014. The return of assets % has been 14.93 % in 2011, 12.91 in 2012 and 11.93 in 2013. This also sets an indication that the company has got less Return of assets in the recent years. This confirms that the company is putting up huge investment which is leading to the decrease in the return of assets. Similar drop is observed in the return of equity which has decreased from 20.68 to 16.54 % (Drake et al, 2012).
Financial Stability of Google: From the financial ratios, it can be found that Google has been consistently in profits for over 10 years. Since the establishment of the company in 1998, Google has earned a huge profit margin per unit. As per the gross profit margins for Google, the company has been financially stable since its incorporation. The operating margin for Google has been consistent between 25 % and 35%. For the year, 2011 the operating margin has been 30.98 while for the year 2012 it is 25.43 and 23.34 for the year 2013. Thus, Google has been financially stable.
4) The three asset utilization ratios which will be beneficial for the investors include the following:
1) Asset Turnover: Asset turnover is the amount of turnover which is obtained from the assets. The asset turnover for Google has been 0.58 for the year 2011, 0.60 for the year 2012 and 0.58 for the year 2013. Thus, Asset Turnover ratio is the amount of total sales or revenues which are generated for every dollar of the asset. Thus, the Asset turnover ratio is the indicator of the efficiency by which the company has to deploy its assets. Higher is the ratio, better would be the company. For Google, the Asset turnover ratio has been significantly high. Thus, it suggests that company has been using its assets in a successful manner.