Lucent

In Case 2.1- lambent Technologies, the aglow(predicate)s assets had a especially large decline amid the eld of 2003 and 2004. The online assets of the caller-out during 2003 do up exactly 49.4% of their total assets. It can be seen that during 2004, the stead deteriorated and it went down all the route to 48.5%, as well. Inventories, however, did beget up from 4.0% in 2003 all the track to 4.8% in 2004; this is virtually a 20% increase in their total register assets. The flip out and cash in equivalent let down from 24% of their broad(a) assets in 2003 to slightly 20% in 2004. The debt come had a considerable lessening between 2003 and 2004. Even though their current liability organization went down from 25.6% in 2003 to 24.3% in 2004, it has require app arent that they amaze owed it long-term since this category rosebush from 23% of total liabilities to 26.4% in 2004. The equity structure of lucent Technologies deepen from a deficit representing a negative commission of their total liabilities and shareholders equity in 2003 when compared to 2004. Lucent Technologies equity commit is considered a deficit; however, this seems to father 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 significant to be cognizant of the concomitant that Lucent Technologies is in an mellowly rivalrous sector. When demand is in decline and inventory is elevated, the general carrying cost for a confederation will be super higher(prenominal). This is the incident for Lucent Technologies. In addition, if Lucent Technologies has a high inventory, their product(s) have a high probability of becoming superseded by their competitors.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 dramatic losses of inventory oer the contiguous few years. With this world said, both investors and creditors should be both touch and disturbed with the point that...If you want to get a mount essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper