Motorola and Nokia Company Financial Analysis

Subject  > Businesss Research Papers  > Accounting

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. Motorola Cash Flow, Revenue and Income Analysis Over the past three years, 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 ...

... other ratios, Motorola's P/E ratio is 15.13, while the market has priced Nokia shares at 33.3. This vote of confidence from the market shows the market's belief that Nokia will far outdistance Motorola's earnings in the mid- to long-term. Classifying a company into a single industry classification can be difficult, given the broad range of products offered by Motorola and Nokia, and the dynamic nature of the telecommunications equipment market. Learning Team A selected telecommunications companies with assets between 5 billion and 25 billion to create baseline industry standard ratios for comparison purposes. In order to create an industry range, the current ratio and return on sales are expressed with upper, median, and

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