ACC/230
January 7, 2011
Eddie Mattison
LUCENT TECHNOLOGIES CASE
After reading the Case recapitulation of Lucent Technologies, its obvious that the assets of Lucent Technologies suffered a heroic decline amongst the years of 2003 and 2004. 49.4% of their dumbfound along assets in 2003 consisted of their menstruum assets, and in 2004 the percentage of their current assets reduced to 48.5%. Lucent Technologies total current assets increase from $7,863 in 2003 to $8,231in 2004. After a genuinely thorough analysis, it is also obvious that the inventory of Lucent Technologies increased between the years of 2003 and 2004, because in 2003 the percentage of inventory was lone(prenominal) 4% and it rose to 4.8% in 2004. In measuring the friendships cash and cash equivalent, it was clearly seen that their entire assets decreased by 24% in 2003 and almost 20% in 2004.
The total debt structure of Lucent Technologies significantly decreased between 2003 and 2004. Lucent Technologies current liability decreased from 25.6% in 2003 to 24.3% in 2004, but their debt could be thought to be more as long term because these debts rose from 23% of total liabilities to 26.4% a year later.
When considering the equity section of Lucent Technologies, it was shown that they had a negative representation of their sh arholder equity and total liabilities in 2003 when compared to the add up in 2004; this makes their company look more like a deficit; although it is likely that improvements will happen and the companys current situation can improve and become less(prenominal) of an issue as the years progress.
After evaluating Lucent Technologies equipoise sheet, its more than likely that the creditors and investors would more than likely be concerned that even though the cash and cash equivalents are decreasing, the assets are accelerating steadily. The fact that Lucent Technologies is part of a very(prenominal) competitive sector is also relevant. Another thing to be concerned about is that when demand is in a...If you want to get a full essay, order it on our website: Ordercustompaper.com
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