Business Analysis Part II

Business Analysis Part II

Before one decided to invest in Motorola Mobility there are several issues one must look into to see if the company is worth the investment. A company financial statement is important to have before a decision is made to invest. Motorola's Mobility financial statement will allow one to study the company income statement, balance sheet, and the cash flow to determine the financial health of Motorola Mobility. Just to make sure that Motorola Mobility is a stable company one should research other companies operating in the same industry. T-Mobile and Cricket Wireless are two other companies in the same industry as Motorola Mobility. By studying each financial statement one will be able to make the right decision to invest in Motorola Mobility.

Motorola is one of the world leading companies when concerning wireless products. Motorola has been in business for 75 years. They have been serving the needs of the public safety market for generation. In order for Motorola to become the company they, are today their financial assets had to be strong. This paper will take an inside look at Motorola's financial statements along with other aspects of the company. The company financial statements are broken down into three parts, Income Statement, Balance Sheet, and Cash Flow.

Motorola Balance Sheet:

The balance sheet of Motorola is something that has to be look at from top to bottom to make sure an investor is making the right decision to invest in this particular company. Motorola's balance sheet shows how the company is doing by quarters. Quarter one in 2011 shows Motorola making a profit (9,490) from quarter four in 2010 (6,204) in its liabilities and shareholder equity. When one review T-Mobile and Cricket Wireless balance sheet he or she will be able to tell that there is some difference. T-Mobile balance sheet is also broken down by quarters. Quarter three of T-Mobile balance sheet shows that their liability and stakeholder show a profit from previous quarter. To whereas Cricket Wireless balance sheet only show a small profit margin.

Motorola Income Statement:

Motorola Income Statements shows how the company is doing by quarters. Quarter four in 2010 the company total revenue is (3, 450) and in the quarter first 2011 the company total revenue (3,032). There operating income in 2010 fourth quarter shows a profit of (133.0) but in 2011 first quarter there is a difference of (-36.0), which means that Motorola income statements show that the company may be in trouble. Looking at T-Mobile and Cricket Wireless income statement both companies show a profit.

Motorola Cash Flow:

Motorola's Cash Flow statement will be able to show an investor if the finances is there to operate the company. The company cash flow give the investor the insight of the company operating activities, investing activities, financing activities, and the company net change in cash. Motorola's cash flow statement is also broken down by quarters and in 2010 fourth quarter Motorola's operating activities was (606.0) and 2011 first quarter (107.0). Their investing activities fourth quarter of 2010 was (-277.0) and first quarter in 2011 was (-61.0). Motorola's cash from financing activities show in 2010 fourth quarter was (-383.0) and in first quarter was a positive (3,063). The company cash flow statement show concerns an investor should be aware of. When taking a look at the cash flow statement of T-Mobile and Cricket Wireless they are both difference and shows that the company is making a profit each quarter not like Motorola.

Concern for the Company:

Taking an inside look at Motorola's Financial Statement has brought some concern. The statements show that Motorola is experienced financial problem and something needs to be done to turn the company around. With looking at the company cash flow one should able to see that the company is lacking what they need to operate the company effectively. Not only does the cash flow bring concerns so does the income statement. The income statement show that the company is in a holding pattern.

The information from Motorola's balance statement, cash flow statement, and income statement will come in handily for the managers of the company. Management can utilize the information from each statement to try to improve the organization. Management should analyze the information to see what the company next step should be. Management can established metrics in several areas of the company financial statements and continue to strengthen these metrics. To determine the appropriate metrics, management need to break each statement down to see when the company starts losing money.

Financial Health:

Motorola financial health is one not clear with looking at each statement the company seems to have some financial problem. Motorola Mobility Holdings Inc. (MMI) reported its first-quarter 2011 financial results, beating the Zacks Consensus Estimates. Moreover, management provided an improved financial guidance for the ensuing second quarter of 2011. As a result, in the aftermarket trade in NYSE, stock price of Motorola Mobility went up by 96 cents (4%) to $24.95.

Quarterly total revenue was $3,032 million, up 22.3% year over year. Quarterly GAAP net loss was $81 million or 27 cents per share compared with a net loss of $212 million or 72 cents per share in the prior-year quarter. However, first-quarter 2011 adjusted (excluding special items) EPS was a loss of 22 cents, much better than the Zacks Consensus Estimate of a loss of 26 cents. Motorola financial health is different from the other companies in the industry. The company financial statement is something that shows how well the organization is performing. The statements also shows one where work is needed. Other company's in the industry financial my do the same

Motorola Technological Advantages:

Motorola cell phone accessories are the newest technological advances. Motorola cell phone accessories are convenient and reliable, they helping people on the go receive access to communications at a moments notice. In this age of information everything is fast moving, reaching around the world in seconds. Motorola accessories assist in this by expediting the flow of information with Motorola cell phone accessories. When one take a look at T-Mobile and Cricket Wireless they both are using the top technological advantages. In order for companies to compete in this industry they, will have to invest in high quality technology.

Globalization affects Business:

Motorola process things by which they experience