No. of Recommendations: 0
"Lessons From Lucent - the Motley Fool Special Report" posted January 13, 2000 gives numbers illustrating that Lucent's receivables and inventory grew faster than sales for all 4 quarters of 1999. The numbers they give for the 4th quarter of 1999 are:

Q4 '99 - Sales Growth = 23%, Inventory Growth = 54%, Receivables Growth = 41%.

I, in trying to duplicate these numbers, looked at Lucent's 4th quarter 1999 10-Q on Edgar. I am sure that this is pure ignorance on my part, but I cannot even come close to reproducing those numbers. I get revenues (which I am probably erroneously equating with sales) from the income statement for the 4th quarter of 1999 of $9905 (millions). I get revenues for the 4th quarter of 1998 of $9842. 9905/9842 = 1.006 or 6/10ths of a percent, not the 23% in the report.

Continuing, I get inventories from the balance sheet for 4th Q 1999 of 5380 and 5064 from the 4th A 1998. 5380/5064 = 1.06 or 6%, not the 54% indicated in the report.

Still continuing, I get receivables from the balance sheet of 10143 for '99 and 10563 for '98. Obviously this is a decline, not a 41% increase as indicated in the report.

Can anyone help me figure out what I am doing wrong here?--CassBielski
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.