Week 2 Individual: Lucent Technologies Case
Project: Read Case 2 . you: Lucent Technology on pp. 79 and 80 (Ch. 2) of the text.
Create a 500- to 750-word paper that includes your answers to concerns 2-4 upon p. 79. Question #2: Evalutat the asset, debt, and value structure of Lucent Technology, as well as trends and alterations found on the common-size balance sheet.
After reviewing the situation of Lucent Technologies, we all discover that the assets pertaining to Lucent Solutions suffered a decline among 2003 and 2004. Based on the information offered in the case disclosing, the current possessions in the year 2003 was forty-nine. 4% of Lucent Technology total possessions, whereas the existing assets in 2004 decreased to 48. 5%. Even though, after looking at the case the percentage of products on hand rose by 4. 0% in the year 2003 to some. 8% in 2004. We could then compute there is of a 20% embrace the total products on hand holdings. It is also apparent that Lucent Technology entire property in the year 2003 was 24% and had a decrease in 2005 to regarding 20%. This could be measured by company's cash equivalents and cash.
The entire debt structure of Lucent Technologies lowered between the year 2003 and 2004. Lucent Technologies had a reduction in their current liability. In 2003 their current legal responsibility was twenty-five. 6% and decreased to 24. 3% during 2005. According to the debt that improved from 23% in the year 2003 to 21. 4% one year later in the company's total responsibility, the bills of Lucent Technologies would be considered long-term. In 2003, Lucent Technologies had lowered in the representation of total liabilities and shareholders fairness on the fairness side to get Lucent Technologies when compared to a year later. Improvements could happen and the condition of the business now can easily improve since the year progresses so the business won't appearance deficit.
Query #3: What concerns might investors and creditors include based on only this information?
Depending on only this info for Lucent Technologies, a problem investors and...