Motorola vs. Nokia Financial Analysis

Common Assignment |

Motorola vs. Nokia |

Microeconomics |

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Lesly Castillo |

5/15/2012 |

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For the analysis, I selected Motorola and Nokia. The two companies control a dominant share of the cellular handset market. Successful competition in the cellular equipment industry requires companies that can plan for change, identify their worldwide position, and recognize trends in their financial results and in the tastes of their customers. I chose to compare it in times of the year 2000-2004. The reason being is because I found more charts and more information back then, Than right now. If I were to do it in terms of now I wouldn’t have as much as information as I found for the previous times. I really hope you like and enjoy this paper.

Motorola Cash Flow, Revenue and Income Analysis

, Through,2000 to 2003 Motorola struggled mightily. In 2001 and 2002, the company saw significant declines in revenues and net income, ultimately resulting in the resignation of the company's CEO and a restructuring in the second half of 2003. The failures lead to declines in revenues and net profits year-over-year from 2000 to 2001 and 2002 as summarized below (EDGAROnline, 2004):

Motorola Revenue and Net Profit Summary

Year | Revenue ($Million) | Net Profit ($ million) |

2000 | 37,580 | 1,318 |

2001 | 30,004 | (3,937) |

2002 | 26,679 | (2,485) |

2003 | 27,058 | 893 |

Motorola's cash flow statements for 2001 through 2003 are summarized below (EDGAROnline, 2004):

Period Ending | Dec. 31, 2003 | Dec. 31, 2002 | Dec. 31,2001 |

Net Income | 893,000 | 2,485,000 | 3,937,000 |

Operating Activities, Cash Flows Provided By or Used In:

Depreciation | 1,667,000 | 2,108,000 | 2,552,000 |

Adjustments To Net Income | 487,000 | 2,352,000 | 1,834,000 |

Changes In Accounts Receivables | 54,000 | 155,000 | 2,445,000 |

Changes In Liabilities | 374,000 | 980,000 | 3,030,000 |

Changes In Inventories | 77,000 | 102,000 | 1,838,000 |

Changes...