Motorola Mobility, Business Analysis 2

Only available on StudyMode
  • Download(s) : 125
  • Published : November 7, 2011
Open Document
Text Preview
Business Analysis two of Motorola Mobility Holding Inc.
Creating a business environment that competes with the 21 century globalization has been among one of the main challenge of Motorola mobility. Motorola mobility faces an uphill battle against many competitors among which are counted: Apple, Blackberry, and Alcatel Lucent. What have been the Social, Legal, Economic, Political, and natural conditions that affect Motorola mobility’s Operational processes and procedures? Motorola Mobility have shown some positive return is the recent month, but because of the instability the Mobile electronic devices, people still wonder if: Motorola Mobility is a good and stable company that will grow our long-term wealth with a decent rate on the return ? What are the factors in play? What are the strong factors that Motorola Mobility required to be efficient in this abrupt technology Field? Motorola mobility financial heath

In the wireless handset market, MMI competes with other handset manufacturers like Apple, Blackbery RIM. The competion is veru abrupt among this three giants og the mobile technology. It have been nearly three months since Google caught the tech world off guard by offering to buy Motorola Mobility Holdings for $12.5 billion, to keep up with its competitors Motorola called it a welcome news. That is 11 weeks of head scratching, followed by second guessing, followed by some daring analysis. How is the financial statement of the new Motorola mobility and Google?

Income statement
Motorola Mobility Holdings, Inc. (NYSE: MMI) on their website reported an income statement with net revenues of $3.3 billion in the third quarter of 2011, up 11% from the third quarter of 2010. The GAAP net loss in the third quarter of 2011 was $32 million, or $0.11 per share, compared to a net loss of $34 million, or $0.12 per share in the third quarter of 2010. On a non-GAAP basis, the net earnings in the third quarter of 2011 were $35 million, or $0.12 per share compared to net earnings of $38 million, or $0.13 per share in the third quarter of 2010.Total cash at the end of the quarter was $3.3 billion. Operating cash flow was $25 million for the quarter, a sale growth of 3.7%, and gross income growth or 38.84 %. On the other hand Motorola Mobility's first competitor Apple declare a total revenue of 28.9 billion and net revenue of 24.6 billion in the third quarter a very significant improvement for last year. As of September 2011, Apple is the largest publicly traded company in the world by market capitalization and the largest technology company in the world by revenue and profit. Comparing to the second competitor Blackberry RIM, Motorola Mobility has made 1.5 billion lesser. RIM recorded revenues of $19.9 billion and net income of $3.4 billion in the same time in 2010 Balance sheet

Motorola reported a balance sheet with total assets of 9.5 billion, a total liability of 4.65 billion, a common Shares Outstanding of 296.9 million and an operating ratio of 0.7%. . The company had no debt on its balance sheet in the quarter. Meanwhile Motorola Mobility competitor Apple reported a total asset of116.37 billion, a total liability of 39.76 billion, and shareholder equity of 76.61billion. As of July 2011, the company operates 357 retail stores in 10 countries, and an online store where hardware and software products are sold. Motorola Mobility competitor Blackberry RIM also reported a total asset of 13.98 billion, a total liability of 4.06 billion, and share holder equity of 9.92 billion. Cash flow

Motorola has declared a depreciation of 56 million and a net operating cash flow of $25 million at the end of September and according to many investors, free cash flow is the best indication of a company's ability to generate cash. During the third quarter of 2011, Motorola Mobility’s cash compared with the cash generation of $324 million in the prior-year quarter. Free cash flow (cash flow from operations...
tracking img