Google (GOOG), a leading technology company, has announced a 3.17 percent rise in profit for the quarter ended Mar. 31, 2014. The company earned $3,452 million or $5.04 a share in the first-quarter, compared with $3,346 million or $4.97 a share a year ago.

Revenue during the first-quarter climbed 19.06 percent to $15,420 million from $12,951 million in the last year period.

Gross margin expanded by 100 basis points over the last year period to 61.34 percent. Total expenses as a percentage of revenues increased to 73.31 percent from 71.06 percent in the same period last year. That resulted in contraction of 225 basis points in operating margin to 26.69 percent.

The company reported operating income of $4,115 million, compared with an operating income of $3,748 million in the previous year period.

''We completed another great quarter. Google's revenue was $15.4 billion, up 19% year on year'', said Larry Page, CEO of Google. ''We got lots of product improvements done, especially on mobile. I'm also excited with progress on our emerging businesses.''

Google's sites generated revenues of $10.47 billion, or 68% of total revenues, in the first quarter of 2014. This represents a 21% increase over first quarter of 2013 sites revenues of $8.64 billion.

The company's partner sites generated revenues of $3.40 billion, or 22% of total revenues, in the first quarter of 2014. This represents a 4% increase over first quarter of 2013 network revenues of $3.26 billion

Its other revenues were $1.55 billion, or 10% of total revenues, in the first quarter of 2014. This represents a 48% increase over first quarter of 2013 other revenues of $1.05 billion.

Google's revenues from outside of the United States totaled $8.76 billion, representing 57% of total revenues in the first quarter of 2014, compared to 56% in the fourth quarter of 2013 and 55% in the first quarter of 2013.

Cash flow

Google has generated cash of $4,391 million from operating activities during the quarter, up 20.86 percent or $758 million when compared with the last year period.

The company has spent $7,307 million in cash to meet investing activities during the quarter, as against cash outgo of $2,441 million in the year period. It has made net capital expenditure of $2,345 million during the quarter, which was higher by 94.93 percent or $1,142 million from a year ago. ''We expect to continue to make significant capital expenditures," the company said.

The company's free cash flow accounted for 46.60 percent of operating cash flow for the quarter, compared with 66.89 percent in the last year period.

The company has generated net cash of $822 million from financing activities during the quarter, as against cash outgo of $517 million in the last year period.

The company has borrowed net of $993 million through debt during the quarter. It has spent net of $326 million on common stock repurchases.

As on Mar. 31, 2014, Google's cash balance stood at $16,639 million, up 8.22 percent or $1,264 million from Mar. 31, 2013.

Working Capital

Google witnessed an increase in the working capital. It stood at $59,044 million as at Mar. 31, 2014, up $9,488 million or 19.15 percent from $49,556 million on Mar. 31, 2013. The company's current ratio decreased to 4.63 as at Mar. 31, 2014 from 4.74 on Mar. 31, 2013.

The company's cash conversion cycle (CCC) decreased to 27 days for first-quarter from 34 days for the last year. CCC is a liquidity metric which expresses the length of time (in days) that a company uses to sell inventory, collect receivables and pay its accounts payable. Decreasing or steady CCCs are good for business.

Days' sales outstanding went down to 52 days for first-quarter compared with 60 days for the last year. This indicates the company has shortened credit period to clients for making payment.

Days' inventory outstanding decreased to 6 days for first-quarter compared with 10 days for previous year. This suggests the company took less time to convert the inventory into sales.

While days' payable outstanding went down to 31 days for first-quarter from 36 days for the last year. This reflects that the company has made early payment to vendors compared to prior year period.

Debt Position

The company has witnessed an increase in total debt over the last year. As at Mar. 31, 2014, the company's total debt stood at $6,243 million, up 21.48 percent or $1,104 million from Mar. 31, 2013.

The company's total debt accounts for 5.36 percent of total assets on Mar. 31, 2014, compared with 5.31 percent on Mar. 31, 2013.

The company's debt to equity ratio remained almost stable at 0.07 for the quarter ended Mar. 31, 2014 when compared with the last year.

On a worldwide basis, Google has 49,829 full-time employees (46,170 in Google and 3,659 in Motorola Mobile) as of Mar. 31, 2014, compared to 47,756 full-time employees (43,862 in Google and 3,894 in Motorola Mobile) as of Dec. 31, 2013.