Evaluation of Lucent Technologies
Not what you're looking for?
Please see the attachment.
2. Evaluate the asset, debt, and equity structure of Lucent Technologies, as
well as trends and changes found on the common-size balance sheet.
3. What concerns would investors and creditors have based on only this
information?
4. What additional financial and non-financial information would investors
and creditors need to make investing and lending decisions for Lucent Technologies?
Purchase this Solution
Solution Summary
The solution evaluates the financial statements of Lucent Technologies.
Solution Preview
2. The asset structure of Lucent deteriorated between 2003 and 2004. The current assets of the company during 2003 constituted 49.4% of all assets. During 2004, this position declined to 48.5%. Inventories climbed from 4.0% in 2003 to 4.8% in 2004 (a twenty percent increase in inventory holdings). Cash and cash equivalents declined from 24% of all assets in 2003 to 19.9% during 2004.
The debt structure of the company declined as well between the two years as well. Although current liability position decreased from 25.6% in 2003 to 24.3% during 2004, the debt seems to have shifted to long term as this category increased from 23% of all ...
Purchase this Solution
Free BrainMass Quizzes
Marketing Management Philosophies Quiz
A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.
SWOT
This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.
Operations Management
This quiz tests a student's knowledge about Operations Management
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
IPOs
This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)