Lucent

In Case 2.1- luminous Technologies, the Lucents assets had a funnily 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 fleck 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 supplant and cash equivalent lowered from 24% of their broad(a) assets in 2003 to about 20% in 2004. The debt amount had a considerable write down between 2003 and 2004. Even though their current liability show went down from 25.6% in 2003 to 24.3% in 2004, it has require appargonnt that they pay back 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 shortage representing a negative representation of their total liabilities and shareholders equity in 2003 when compared to 2004. Lucent Technologies equity position is considered a deficit; however, this seems to lead 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 position that Lucent Technologies is in an extremely rivalrous sector. When demand is in decline and inventory is elevated, the overall carrying cost for a attach to will be extremely broad(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 In addition, if Lucent Technologies has a high inventory, their product(s) have a high probability of becoming superseded by their competitors.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 salient losses of inventory over the contiguous few years. With this universe said, both investors and creditors should be both touch and disturbe! d with the point that...If you want to get a mount essay, order it on our website: OrderCustomPaper.com

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