University of Phoenix
Lucent Technologies is a company that designs software and services that drive next generation software. Lucent Technologies are supported by Bell Labs research and development. Their strengths are in mobility, access, voice, data, voice networking technologies, and services. The services that Lucent Technologies provide create revenue generating services for their customers. Their customers are enterprises worldwide, governments and communication service providers. The global telecommunications market started to fall apart in the beginning of fiscal 2001. The cause of deterioration was due to economic hardship which caused a slowdown, customer bankruptcies, and limited availability of capital.
In reviewing the asset structure for Lucent Technologies, I noticed that there were some trends and changes. There was a decrease in assets between the years of 2003 and 2004. Cash and cash equivalents was 3,821 million in 2003 and went down in 2004 to 3,379 million. However, there was about a 20% increase in inventories in 2004. In reviewing the debt structure, there was a decrease in debt between 2003 and 2004. Although in 2003, the current liability was $4,934 and in 2004 the current liability was $4,466 there was an increase in long term debt in 2004. In reviewing the equity structure, the total liabilities, redeemable convertible preferred stock and shareowner’s deficit increased in 2004. In 2003 it was $15, 911 and in 2004 it increased to $16, 963.
I think that the investors and creditors would be concerned on the information given from the balance sheet. When the cash and cash equivalents were declining, the assets increased. Lucent Technologies have growing demands from enterprises and consumers for services geared to their need for convergence of networks, applications, and network.
The additional financial and non financial information that investors and creditors would need to make investing and...