Financial Statements

According to the Financial Statement of Lucent Technologies, comparison of the balance sheet   for 2003 and 2004 showed that cash and   cash equivalent have decreased.   Whereas, inventory, receivables and marketplace securities have increased.   There was a decline in the current assets, even though the total assets increased, the current assets showed what is available.
While analyzing the balance sheet there is concern to the debt portion. While the accounts payable has decreased, as well as the debt maturing within one year, it looks as though Lucent Technologies transitioned the short-term debt into long-term debt.   With the current liabilities decreasing this could cause a problem but since the long term liabilities shows the increase it will help to prevent a loss. The increase in payroll could stem from acquisition of other companies, while the increase in postretirement Investors and creditors would certainly be worried about the actuality that when their cash and cash equivalents are decreasing, their assets are steadily accelerating. It is also important to be concerned of the fact that Lucent Technologies is in an extremely competitive sector. When demand is in decline and inventory is elevated, the overall carrying costs for a company will be extremely high.   This is the case for Lucent Technologies. and postemployment benefit liabilities could demonstrate layoffs to the theory of a slow economy.   After the evaluation of Lucent Technologies balance sheet, creditors and investors would more than likely be concerned about the fact that even if the cash and cash equivalents are decreasing, the assets are accelerating steadily.   It is also important that Lucent Technologies is part of a very competitive sector.   When the demand is not up to par, the inventory is somehow elevated and the carrying costs for this companyAfter the evaluation of Lucent Technologies balance sheet, creditors and investors would more than likely be concerned about the fact that...