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 ostracise $537 million. ROE was negative 4.64% compared to the industry average of 13.8%. Acquisitions, mergers, and partnerships have let a major strategy of many companies in the telecommunications industry.
Nortel oftentimes participates in acquiring other companies in order to turn out their business units, products, and lines. In 1998, Nortel?s largest acquisition occurred when they acquired Bay 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 ratio was interesting...If you inadequacy to get a full essay, order it on our website:
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