The following is an excerpt from Lucent Technologies’ Management?
The following is an excerpt from Lucent Technologies Management? Abstract EjecutivoDiseñamos and provide the systems, communications services generaciónredes softwarey next unit. Backed by Bell Labsinvestigación and development, use nuestrapuntos high mobility, optical, access, data voice network ytecnologías and comoservicios, creating new generators ingresosoportunidades for our customers, while also allowing them to deploy their networks quickly and mejorgestionar. Our supplier base communications services clientesincluye, governments and businesses across the three segments mundo.Tenemos organizadosalrededor products and services that are reportable segments vendemos.Los integradoSoluciones networks (INS), Mobility Solutions (“Mobility”) and Lucent Worldwide Services (“Services”). LSI offers a broad Gamade software and appliances fijaal voice telephony network (composed principalmentede switching products, which vecesse called convergence solutions, and vozproductos messaging), data and redgestión (consisting primarily access and data related equipment Redy Support operating system) and ópticoscreación network. Yequipo Mobility provides software for mobile access networks radioy base. Services provides deployment, maintenance, professional and support our two gestionadosservicios productosofrendas and proveedores.Empezando multiple networks for 2001, the telecommunications mundialmercado deteriorated, resulting in a decrease in the foreign exchange market competenciade significativala local transport and reducing capital expenditures porproveedores set of services. This trend intensificódurante fiscal 2002 and continued in fiscal2003. The reasons for the deterioration of general economic slowdown mercadoincluidos redexceso capacity, customer bankruptcies, network build-up delays and limited capital.Creemos disponibilidaddel that the market has telecomunicacionesequipo estabilizadoy begins to develop in certain areas. They demand of growing business and additional services tailored to the needs consumidoresde Asus creates the need for nuevoconvergencia network yaplicaciones.Necesario1 technologies. With the balance of Lucent Technologies consolidadoHojas para30 2004 September 2003 balance prepararun común.2 size. Evaluate the asset, debt, and Lucent Technologies equidadestructura, comoasí trends and balance variations are Inthe común.3 size. What worries investors and was founded as seacreedores esteinformación? 4. What other financial and non inversoresy financierosde that creditors must make lending decisions inversionesy LucentTecnologías? SUBSIDIARIASBalances Lucent Technologies Inc. and Consolidated (in millions, except per share data) September 30 September 30, 2004 2003BienesEfectivo and cash equivalents $ 3.379 USD 3.821Los 686Por securities receivable 858,822 1.511Inventarios 632Otros 1359 Current Assets 8231 1813 Current assets term securities 7.863Los 1.213Total 636-Property and equipment, net 1376 5358 1.593Prepagada pension costs for commercial 4659Crédito and other purchased intangibles, net 434 928 1608 Activos 188Otros assets 963 Total 16 $ 15 $ 872 payable in 1072 and 1232 dólaresRemuneraciones 911PasivoCuentas 1.080Deuda benefit liabilities maturing within one year a 389Otros 2.393Total Liabilities Current liabilities Short-term 2361-4466 4.934Posteriores and post retirement benefit liabilities liabilities 4881 1874 4837 4669 2494 Pensiones The responsibility for long-term debt 4.439La subsidiary trust issuing preferred shares liabilities 1152Otros 1152 1132 18 342 19.282Compromisos 1.594Total and liabilities contingencias8. 00% convertible redeemable preferred shares – Action 868Déficit shareholders’ preferred, par value $ 1. 00 per share, shares authorized: 250; issued and outstanding: none – common values, the nominal value of $. 01 per share, shares authorized: 10,000, 4396 and 4395 of the outstanding shares issued by del30 September 2004, 4170 and 4169 yacciones issued in circulation from September 30, 2003 44 23 005 22.252Déficit 42Prima accumulated capital (20,793) (22 795) Accumulated other comprehensive (3635) (3738), the total deficit of shareholders (1379) (4239) Total liabilities, redeemable preferred shares convertiblesy deficit shareholders $ 16,963 $ 15,911 * 1 month ago
Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.
Looking at the change in figures from 2003 t0 2004 the total assets have increased by $1,052,000 while total liabilities have decreased by $940,000 indicating a net worth increase of $1,992,000 ( of which $753,000 was from additional paid in capital). This indicates that the company must have made a profit of $1,239,000 ($1,992,000-$753,000),in the twelve months to 30 Sept 2004. The return on total assets based on this figure is
ROTA = Profit/Total Assets x 100
ROTA = 1,239,000 / 16,963,000 x 100
ROTA = 7.3% approximately
This could be considered a reasonable return but needs to be compared with the industry average to draw any conclusions. The ROTA is a good measure of management’s handling of company affairs. A poor return reflects against management as shareholders will want to know why the company holds assets that do not give a reasonable return on the investment.
Potential investors would need to see the Revenue statements. The figures here do not give any indication of whether sales revenues or profits are going up or down from 2003 to 2004. Inventories have increased from 2003 to 2004 by 190,000 or 30%. This could mean that sales have dropped considerably during the previous twelve months. This could indicate the beginning of a downward cycle which does not augur well for the future.
Looking at the liquidity of the company it has current assets of $8,231,000 and current liabilities of $4,466,000. This is slightly below the 2:1 ratio that is considered a save margin. The quick ratio (or acid test ratio) is also below the required 1:1, $4,237,000: $4,466,000. This company could have trouble meeting its debts as they fall due, especially as it appears that sales revenues have dropped (reflected in the increase in inventories).