Preview

Lucent Technologies Harvard Case

Satisfactory Essays
Open Document
Open Document
603 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Lucent Technologies Harvard Case
Maria Lucia Rodriguez
PANTHER ID 3579558
Lucent Technologies Case

1- ROE decomposition 1998,1999 AND 2000. What factors contributed to the differences in Lucent’s performance between those quarters?
ROE
Period
NET INCOME
X SALES
X TOTAL ASSETS
SALES
TOTAL ASSETS COMMON EQUITY
EQUITY MULTIPLIER
ROE
Dec-99
1175
0.12
9905
0.26
38684
2.41
9905
38684
16079
Sep-99
972
0.09
10575
0.27
38735
2.84
10575
38735
13622
Jun-99
829
0.09
9315
0.25
37156
3.00
9315
37156
12403
Mar-99
457
0.06
8220
0.25
32840
3.63
8220
32840
9051
Dec-99
1523
0.15
9842
0.31
31641
3.75
9842
31641
8437
Sep-98
647
0.08
8574
0.32
26720
4.83
8574
26720
5534
Jun-98
518
0.07
7642
0.30
25279
5.14
7642
25279
4922
Mar-98
186
0.03
6184
0.25
24664
4.90
6184
24664
5036
Dec-97
1124
0.13
8724
0.35
24752
5.30
8724
24752
4671
Sep-97
369
0.05
6933
0.29
23811
7.03
6933
23811
3387
5.05%
18.05%
11.69%
PROFIT MARGIN
TOTAL ASSET TURN OVER
7.31%
7.14%
6.68%
10.52%
3.69%
24.06%
10.89%
ROE
Period
NET INCOME
X SALES
X TOTAL ASSETS
SALES
TOTAL ASSETS COMMON EQUITY
EQUITY MULTIPLIER
ROE
Dec-99
1175
0.12
9905
0.26
38684
2.41
9905
38684
16079
Sep-99
972
0.09
10575
0.27
38735
2.84
10575
38735
13622
Jun-99
829
0.09
9315
0.25
37156
3.00
9315
37156
12403
Mar-99
457
0.06
8220
0.25
32840
3.63
8220
32840
9051
Dec-99
1523
0.15
9842
0.31
31641
3.75
9842
31641
8437
Sep-98
647
0.08
8574
0.32
26720
4.83
8574
26720
5534
Jun-98
518
0.07
7642
0.30
25279
5.14
7642
25279
4922
Mar-98
186
0.03
6184
0.25
24664
4.90
6184
24664
5036
Dec-97
1124
0.13
8724
0.35
24752
5.30
8724
24752
4671
Sep-97
369
0.05
6933
0.29
23811
7.03
6933
23811
3387
5.05%
18.05%
11.69%
PROFIT MARGIN
TOTAL ASSET TURN OVER
7.31%
7.14%
6.68%
10.52%
3.69%
24.06%
10.89%

ROE shoe a decrease over different periods due to
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Advanced Medical Technology Corporation 1
    • 2940 Words
    • 12 Pages

    Advanced Medical Technology Corporation 1

    Extraordinary sales growth for AMT of 30% annually is resulting in major operating losses, and external funds are necessary to be able to continue with this rapid expansion. The net operating losses from 1983-1985 were $1,289,000 in 1983; $1,176,000 in 1984; and $1,487,000 in 1985. The bulk of these losses were a direct result of both SG&A and R&D.…

    • 2940 Words
    • 12 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Industry Averages and Financial Ratios Paper Rough
    • 825 Words
    • 6 Pages

    Industry Averages and Financial Ratios Paper Rough

    Financial management is important for any successful business. Good financial management requires proper planning and keeping up with the conditions of the business’ finances situation through ratio analysis and other performance measures. These analysis are done to ultimately keep up with the financial trends in a company and locate their strengths and weaknesses so they can be altered accordingly. In this paper we are going to perform a ratio analysis on Microsoft Corporation paying close attention to the organizations profitability, solvency, and efficiency ratios. We then will compare those ratios to the average ratios within their industry.…

    • 825 Words
    • 6 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Sun Microsystems Report
    • 1959 Words
    • 8 Pages

    Sun Microsystems Report

    This report from Sun Microsystems to the shareholders will present all the information, in regard to the annual percentage change in net income per common share-diluted for 1998-1999, 1999-2000, and 2000-2001. In addition, this report will compute the net income/revenue (sales) for those years, and will explain the major reason for the change reviewed for 2000-2001, using the ratio of the major income statement accounts to the net revenues (sales), cost of sales, research and development, selling, general, and administrative expense, and provision for income tax. In addition, using the data above, this report will show the return on stockholders’ equity for 2000 and 2001, the profit margin, and the return on assets (investments) through net income/total assets and net income/sales x sales/total assets. It will also show the return on equity through return on assets/(1 – debt/assets), explaining the main contributing factor to change in return on stockholders’ equity between 2000 and 2001, in terms of Du Pont system of analysis. In other moment, this report will indicate the price/earnings (P/E) ratio for each year, based on the average stock price of each year (11 ¼, 16 ¾, 28 ½, 9 ½ respectively), answering why the P/E has changed from 2000 to 2001. It will indicate the ratio price to book…

    • 1959 Words
    • 8 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Square Roots And Cube Roots
    • 115 Words
    • 146 Pages

    Square Roots And Cube Roots

    No. Square. Cube. Sq.…

    • 115 Words
    • 146 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    EASTMAN KODAK
    • 592 Words
    • 3 Pages

    EASTMAN KODAK

    This quarterly report is based on the companies’ business activities as well as their subsidiary companies between the reporting periods of January 1, through December 31, 2011. It has been speculated that some of the previous reports have not been dealing on actual performance data basis (Avery, 2012). While many believe this to be impossible and untrue, however, there seems to be that there were no exceptions reported or noticed on prior reports. Once again, while analyzing this report there seems to be correspondence in regards to data exclusion from the outsourced operations and data for leased facilities were indicated.…

    • 592 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Case Study Lucent Technologies
    • 1104 Words
    • 5 Pages

    Case Study Lucent Technologies

    Lucent’s history goes back to the 1875 invention of the telephone by Alexander Graham Bell. It’s one of the three companies which were separated from AT&T’s restructure. Lucent was organized into four units, the largest of which was Network Systems. It provided networking systems and software to local and long distance telephone companies and cable companies. It was the marker leader for switching systems. The Switch Solutions Group(SSG), which made the 5ESS Switch, was part of the Network Systems organization.…

    • 1104 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Home Work
    • 806 Words
    • 4 Pages

    Home Work

    1. In 2005 IBM had a return on equity of 26.7 percent, whereas Hewlett-Packard’s return was only 6.4 percent. Use the decomposed ROI framework to provide possible reasons for this difference based on the data below:…

    • 806 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Lucent technology supply chain summary
    • 867 Words
    • 4 Pages

    Lucent technology supply chain summary

    Lucent Technologies is a multinational telecommunication company which was spun off from AT&T in 1996. Before restructure, as an integrated telecommunications services and equipment company, AT&T had been primarily U.S.-centric market and more than half of income was generated by services in U.S. However, the restructure made Lucent focused on communications equipment globally.…

    • 867 Words
    • 4 Pages
    Good Essays
    Read More
  • Best Essays

    Accounting Ratios Term Paper - Grade: a
    • 3913 Words
    • 16 Pages

    Accounting Ratios Term Paper - Grade: a

    Financial analysis in this paper is primarily discussed with respect to key financial ratios, which are calculated from annual 10K reports. Two-year ratio trends are calculated in the appendices and reported in the body of this paper in graphical form. These ratios were calculated from 10Ks published at the end of the 2008 & 2009 fiscal years. As such, the trend graphs represent the final financial standings at the end of these two fiscal years.…

    • 3913 Words
    • 16 Pages
    Best Essays
    Read More
  • Good Essays

    Textron Corporation
    • 2304 Words
    • 10 Pages

    Textron Corporation

    To make a performance analysis between the Textron and competitors within the same industry segment (mostly Aerospace and Defense firms) by using financial ratios for the fiscal 2005 and 2006 and to compare with Textron’s.…

    • 2304 Words
    • 10 Pages
    Good Essays
    Read More
  • Powerful Essays

    LVMH & Warnaco
    • 768 Words
    • 4 Pages

    LVMH & Warnaco

    Our analysis shows that the ROIC for LVMH and Warnaco are fairly similar – ROIC for LVMH was 12.67% compared to the 10.93% for Warnaco. While we see that LVMH’s operating income is substantially larger than the operating income of Warnaco, the difference in ROIC of 172 basis points shows that the underlying performance of the two companies are much more comparable when taking into account their relative sizes.…

    • 768 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Good Essays

    Thomson Research Database
    • 432 Words
    • 2 Pages

    Thomson Research Database

    Produced by Thomson financial 1982, formerly Global Access and now part of ThomsonONE, Thomson Research collects primary research and statistics, market trends, and segment analysis of over 980 leading firms and 30000 companies comprehensively , based on which financial forecasts and analysis can be made for decision making. It is best known as a source of qualitative information on quoted companies and company annual reports worldwide including analyst reports and company documents.…

    • 432 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Financing Alibaba s Buyout Syndicated L
    • 5180 Words
    • 29 Pages

    Financing Alibaba s Buyout Syndicated L

    1.2.1 Strength ............................................................................................................. 10 1.2.2 Weakness ........................................................................................................... 13 1.2.3 Opportunities .................................................................................................... 15 1.2.4 Threats .............................................................................................................. 17 2. Financial Report Analysis ......................................................................................... 19 2.1…

    • 5180 Words
    • 29 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Bata Shoe Company
    • 5952 Words
    • 24 Pages

    Bata Shoe Company

    Purpose- The purpose of this project is to fully analysis the financial data of the companies. In addition, to compare their Liquidity, Asset management, Debt, profitability, and market value ratio. This would enable us to conclude upon whom is in a better position. In addition, in this project we will look at the DuPont value, which will help us to see weather the company is fully utilizing its Total asset turnover, Equity multiplier, and profit margin all together.…

    • 5952 Words
    • 24 Pages
    Powerful Essays
    Read More
  • Good Essays

    First Farms Corporation
    • 767 Words
    • 4 Pages

    First Farms Corporation

    In analyzing the case, the group is taking the point of view of the Vice President for Finance – addressing the main issue of the source of the decrease in ROE. To determine the causes of the decrease, we looked into the different financial ratios and did trending using common size analysis.…

    • 767 Words
    • 4 Pages
    Good Essays
    Read More

Related Topics