Operating activities play a speculative role in Motorolas cast out lowest income for 2007. The regretful differences between 2007 and 2008 were can be found in falsifys in accounts receivables, changes in liabilities, and depreciation. In 2006, Motorola had a decrease in accounts receivable of $1,775,000,000 merely in 2007 they did non collect exchange and had an growing in accounts receivable by $2,538,000,000. This shows that the cash was not recognised or collected for the 2007 net income. Another big change between 2006 and 2007 was there was an increase in liabilities in 2006 of $1,654,000,000 but in 2007 liabilities were decreased by $2,303,000,000. This shows that Motorola used available 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 out much strength in 2007 but faced much weakness. Their strengths came from their ability to turnover inventory. Their dimension was very close to the top competitor. Also their current ratio was very strong and much higher 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 short 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 equity because they had a negative percentage on their return 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 improve 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 want to get a abounding essay, order it on our website: Ordercustompaper.com
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