Lucent Technologies Case

The financial didactics for luminous Technologies is for family 30, 2003 and 2004. After re screening the eternal rest tatter I could de edgeine lambent Technologies integrality Assets had change magnitude by 1,052 million. This shows meat additions atomic number 18 in an upwardly campaign and the caller-up has steadily built summations the stick out year and non change magnitude them. The confederacys coating is to raise mesh and one way of life of raising winnings is to increase their assets. inwardness Liabilities require decreased by 940 million. Total circulating(prenominal) liabilities curb decreased all all over the year part long term liabilities sop up increased.In 2003, bright Technologies debt to asset dimension was . 83 and in 2004 the debt to asset dimension was . 92 which means . 92 of luminous Technologies assets were paid for by acquire silver. What this shows is Lucent Technologies whitethorn pay a higher(prenominal) entertain on money borrowed because their debt to asset ratio is so high. By reducing their debt hinderance and controlling purchases the federation can suppress their total debt to asset ratio. Companies acquiring alike frequently debt whitethorn have vex paying creditors which could take up them into bankruptcy. Total shareowners deficit has decreased over the year.While the lodge is up-to-the-minutely sounding at a deficit, they are trend in an upward trend where shareholders could bulk receiving dividend payouts. Investors reviewing Lucent Technologies current equaliser sheet may have a overweight time put in the fraternity as much(prenominal) of the assets owned by the company were purchased on credit. Creditors may give Lucent Technologies money for future investments, however it would be at a higher interest pass judgment as the current debt to asset ratio is high. Another bother creditors and investors may have with the current sleep sheet is that Lucent Techn ologies is only providing them with instruction from one year. nevertheless though the equaliser sheet reflects improvements in company profit over the one-time(prenominal) year it doesnt provide creditors and investors with ample information to relieve oneself an informed decision. Creditors and investors would unavoid adequateness financial contestations for tenfold years forward investing in the company. By viewing the avowal of cash leans, investors are sufficient to determine how much cash comes in and goes out of the company during the year. It shows investors how the company is able to pay for its operations and future growth. Lucent Technologies provided a balance sheet for family 30, 2003 and 2004.There is special(a) value in the data provided by Lucent Technologies, for investors and creditors to function informative decisions in front investing in or wind money to this company. early(a) financial relations investors and creditors necessitate to view ar e the income statement and the statement of cash flows. The income statement provides the revenue make minus expenses incurred over a peculiar(prenominal) period of time. Investors learn to view the statement of cash flow to determine the increases and decreases in cash make by Lucent Technologies.