Comprehensive Problem: Sun Microsystems

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Comprehensive Problem: Sun Microsystems
A complete analysis was conducted on the financial statements and status of Sun Microsystems. After examining the research findings and analysis it is fair to say that evidence determines that Sun Microsystems finances has not been on a steady incline. In fact, it had definitely experienced some highs and lows in its return on investment and stockholders' equity over a four- year evaluation from the duration of 1998 through 2001. In order to get a concise understanding of where problems are within the company's operations the following factors were considered and examined: the annual percentage change in net income per common share diluted, net income/net revenues, the major income statement accounts to net revenues, return on stockholders' equity, the price/earnings (P/E) ratio, and the book values per share for each year. In order for Sun Microsystems to see a greater return in its bottom line assets it must consider an alternative approach of operating its organization. The following is a comprehensive view of the finances of Sun Microsystems from 1998-2001. Sun Microsystems has experienced significant fluctuations in performance. The annual percentage change in net income per common share diluted and profit margins were as follows: Annual Percentage Change Profit Margins 199929.2 1998 7.7 200077.4 1999 8.7 2001-50.9 2000 11.8 2001 5.1 Sun Microsystems saw tremendous growth in net income between 1999 and 2000 leading up to a sharp decline between 2000 and 2001. The income statements show increased revenues in 2001, contradicting the data above. Further analysis provides an explanation for...
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