Between 2003 and 2004 Lucent Technologies asset structure changed. After reviewing the common size balance sheet, Lucent Technologies has experienced a small increase in its total assets. Its cash and cash equivalent have decreased, while their inventory, receivables, and marketplace securities have increased. In 2003, 49.4% of all of the company’s assets made up the current assets of the company that year. In 2004, however, the current assets only made up for 48.5% of all of the company’s assets. However, inventory went up in this same period. In 2003 the inventory was at 4.0% and in 2004 it was at 4.8%. Lucent Technologies’ inventory holdings had a twenty percent increase and their cash and cash equivalents fell to 19.9% in 2004 from 24% of all the assets in 2003. Something else that fell during this two-year period was the debt structure of the company. The debt structure increased from 23% of all liabilities in 2003 to 26.4% of all liabilities in 2004. This is after the current liability decreased from 25.6% to 24.3% from 2003 to 2004. On a good note, the equity structure of the company did improve. Total liabilities and shareholder’s equity went from a negative 21% in 2003 to a negative 8% in 2004. The equity position is a deficit but it has improved somewhat from one year to the next.
Investors and creditors should be concerned about the... [continues]
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