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Financial Statement Analysis: Alcatel-Lucent - Research Paper Example
Finance & Accounting
Pages 7 (1757 words)
The research will be focusing on a few areas of the financial statements in the analysis of this company we. These areas include: property plant and equipment, intangible assets, current liabilities, long term liabilities and capital leases. …
The paper tells that the analysis of a company’s financial data reflects the company’s performance. The analysis can be carried out in relation to the past years’ performance of a company or in relation to the performance of other companies in the same industry. It will give an overall view of the company in a manner that is understandable to the stakeholders. The net value of the property, plant and equipment has increased by approximately 4% (2009-$1672 million; 2010-$1740 million). It is a result of higher acquisitions and less disposals as compared to the year 2009. As compared to the last year the company acquired approximately $50 million additional assets and decreased disposal of assets by approximately $154 million. The depreciation charge for the year was $36 million lesser than the last year (2009- $502 million; $467 million). The company charges depreciation on a straight line basis, based on the number of years of the useful life of the assets. For the depreciation purposes the useful life of the assets as per the company is; buildings and building improvements: 5-50 years, infrastructure and fixtures: 5-20 years, plant and equipment: 1-10 years. To the cash flow statement the total depreciation and amortization charge for the year 2010 was $1,359 million which was 2.5% greater than the year 2009. Total gain from the disposal of assets in the year 2010 that was taken to the cash flow statements was $227 million which was 58.6% less than the last year. ...
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