Lucent

In Case 2.1- luminous Technologies, the Lucents assets had a specially large decline between the eld of 2003 and 2004. The online assets of the caller-out during 2003 do up exactly 49.4% of their contribute assets. It can be seen that during 2004, the space deteriorated and it went down all the way to 48.5%, as well. Inventories, however, did beget up from 4.0% in 2003 all the way to 4.8% in 2004; this is virtually a 20% increase in their total register assets. The hang on and cash equivalent lowered from 24% of their broad(a) assets in 2003 to virtually 20% in 2004. The debt amount had a considerable mold between 2003 and 2004. Even though their current liability battle array went down from 25.6% in 2003 to 24.3% in 2004, it has require appargonnt that they bewilder owed it long-term since this category rose from 23% of total liabilities to 26.4% in 2004. The equity structure of Lucent Technologies deepen from a shortfall representing a negative representation o f their total liabilities and shareholders equity in 2003 when compared to 2004. Lucent Technologies equity position is considered a deficit; however, this seems to mystify lesser of an issue as years progress.

Investors and creditors would certainly be worried about the actuality that when their cash and cash equivalents are decreasing, their assets are steadily accelerating. It is also important to be cognizant of the occurrence that Lucent Technologies is in an extremely rivalrous sector. When demand is in decline and inventory is elevated, the overall carrying cost for a political party will be extremely g amy. This is the incident for Lucent Tech! nologies. In addition, if Lucent Technologies has a high inventory, their product(s) have a high probability of becoming superseded by their competitors. As a result, Lucent Technologies may eventually be oblige to impeded salient losses of inventory over the contiguous few years. With this cosmos said, both investors and creditors should be both touch and disturbed with the particular that...If you want to get a mount essay, order it on our website: OrderCustomPaper.com

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