Motorola Swot

Profitability Question 2 Operating activities play a speculative role in Motorolas cast let on lowest income for 2007. The regretful differences between 2007 and 2008 were ordure be put in falsifys in accounts receivables, changes in liabilities, and depreciation. In 2006, Motorola had a step-down in accounts receivable of $1,775,000,000 merely in 2007 they did non collect turn and had an growing in accounts receivable by $2,538,000,000. This shows that the funds was not recognised or collected for the 2007 final income. Another walloping change between 2006 and 2007 was there was an maturation in liabilities in 2006 of $1,654,000,000 but in 2007 liabilities were abated by $2,303,000,000. This shows that Motorola used operable income and cash to pay down many liabilities. Finally, Motorola had deprecation increase by almost $400,000,000 which had a big impact on the net income. Qualitative SWOT Motorola did not wipe turn out over frequently strength in 20 07 but faced much weakness. Their strengths came from their ability to turnover inventory. Their dimension was very close to the bakshis competitor. Also their current ratio was very strong and much extravagantlyer than their compeititor, Nokia. They had strengths in their poise sheet also.

From 2006 to 2007 they decreased their net receivables, paid off debt in account payables, and managed to decrease diddle term debt. These show that Motorola is on the right track to decrease their high debt and collect on receivables to obtain more cash. It can be seen by the ratios that Motorola did not properly manage their assets or righteousness because they had a negative percentage on their give way on assets and equity. They ! also brace a very high debt to equity ratio at 27.10. This shows that Motorola has too much debt compared to their equity and need to find a way to decrease debt and emend equity. They also had many weaknesses in their balance sheet. Their cash and cash equivalents are low and have decreasing since 2005. They also had a high spike in other current liabilities in...If you unavoidableness to get a abounding essay, order it on our website: OrderEssay.net

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