Lucent

In: Business and Management

Submitted By rosybear
Words 569
Pages 3
Lucent Technologies
Judy Sweet
ACC/230
April 8, 2012
Sonsia Richerson

Lucent Technologies Lucent Technologies is into designing and delivering the systems, software and services that drive next-generation communications networks. Backed by Bell Labs research and development, it uses its strengths in mobility, optical, access, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for our customers, while enabling them to quickly deploy and better manage their networks. Its customer base includes communications service providers, governments and enterprises worldwide. We have three segments organized around the products and services we sell.

Financial Analysis:

The asset structure of Lucent deteriorated between 2003 and 2004. The current assets of the company during 2003 constituted 49.4% of all assets. During 2004, this position declined to 48.5%. Inventories climbed from 4.0% in 2003 to 4.8% in 2004 (a twenty percent increase in inventory holdings). Cash and cash equivalents declined from 24% of all assets in 2003 to 19.9% during 2004. The debt structure of the company declined as well between the two years as well. Although current liability position decreased from 25.6% in 2003 to 24.3% during 2004, the debt seems to have shifted to long term as this category increased from 23% of all liabilities to 26.4% during 2004. The equity structure of the firm improved from a deficit constituting a negative 21% of total liabilities and shareholder's equity in 2003 to a negative 8% in 2004. The equity position is one of a deficit but appears to have improved somewhat from year to year.

Investors and creditors would be concerned with the fact that as cash and cash equivalents are decreasing, assets are increasing. In an industry with declining demand and inventory-heavy firm will likely…...

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