'Lucent Technologies Case\r'

'The financial tale for luminous Technologies is for family line 30, 2003 and 2004. After reviewing the balance tag I could specify luminous Technologies heart Assets had increased by 1,052 million. This shows Total pluss are in an upward trend and the society has steadily built assets the last year and non decreased them. The family’s goal is to sneak net income and one way of raising profits is to increase their assets. Total Liabilities contract decreased by 940 million. Total current liabilities corroborate decreased all over the year while long term liabilities submit increased.\r\nIn 2003, lambent Technologies debt to asset balance was . 83 and in 2004 the debt to asset ratio was . 92 which content . 92 of Lucent Technologies assets were paid for by borrow money. What this shows is Lucent Technologies may pay a high interest on money borrowed because their debt to asset ratio is so high. By reducing their debt load and coercive purchases the polit ical party can reduce their total debt to asset ratio. Companies acquiring too practically debt may have trouble paying creditors which could force them into bankruptcy. Total shareowners’ shortfall has decreased over the year.\r\nWhile the company is shortly looking at a deficit, they are school principal in an upward trend where shareholders could start receiving dividend payouts. Investors reviewing Lucent Technologies current balance sheet may have a hard time invest in the company as much of the assets owned by the company were purchased on credit. Creditors may loan Lucent Technologies money for future investments, but it would be at a higher interest rate as the current debt to asset ratio is high. Another bother creditors and investors may have with the current balance sheet is that Lucent Technologies is only providing them with information from one year.\r\n nonetheless though the balance sheet reflects improvements in company profits over the past year it doesn ’t provide creditors and investors with enough information to make an communicate decision. Creditors and investors would need financial recitals for multiple years in advance investing in the company. By viewing the statement of cash guides, investors are able 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 September 30, 2003 and 2004.\r\n at that place is limited value in the data provided by Lucent Technologies, for investors and creditors to make informative decisions before investing in or leading money to this company. otherwise financial statements investors and creditors need to view are the income statement and the statement of cash flows. The income statement provides the revenue take in minus expenses incurred over a specific peak of time. Investors need to view the statement of cash flow to determine the increases and decreases in cash made by Lucent Technologies.\r\n'