Raytheon vs Nortel Nortel vs. Raytheon Two companies taking similar actions that are obtaining very disparate results What is happening to the debt position? Nortel Networks engaged in several acquisitions in 1998. The effect on their income statement was staggering. Despite $17.575 billion in revenues (a $213 million increase from 1997), Nortel?s net income before taxes was bar $537 million. ROE was negative 4.64% compared to the industry average of 13.8%. Acquisitions, mergers, and partnerships have permit a major strategy of many companies in the telecommunications industry.
Nortel oftentimes participates in acquiring other companies in order to stoop out thei r business units, products, and lines. In 1998, Nortel?s grandst acquisition occurred when they acquired call for Networks for an estimated US$9.1 billion. In looking at the 1998 financials (I mention these because of the large clam amount spent on acquisitions that year), Nortels Debt/Equity proportionality was interesting...If you inadequacy to get a full essay, order it on our website: OrderEssay.net
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