A complete analysis was conducted on the financial statements and status of Sun Microsystems. After examining the research findings and analysis it is fair to say that evidence determines that Sun Microsystems finances has not been on a steady incline. In fact, it had definitely experienced some highs and lows in its return on investment and stockholders' equity over a four- year evaluation from the duration of 1998 through 2001. In order to get a concise understanding of where problems are within the company's operations the following factors were considered and examined: the annual percentage change in net income per common share diluted, net income/net revenues, the major income statement accounts to net revenues, return on stockholders' equity, the price/earnings (P/E) ratio, and the book values per share for each year. In order for Sun Microsystems to see a greater return in its bottom line assets it must consider an alternative approach of operating its organization.
The following is a comprehensive view of the finances of Sun Microsystems from 1998-2001. Sun Microsystems has experienced significant fluctuations in performance. The annual percentage change in net income per common share diluted and changes in stock prices were as follows:
Increase/Decrease in net income per common share diluted Change in stock prices
1998 - 1999 7% Increase 24 to 31 cents on the dollar
1999 - 2000 24% Increase from 31 to 55 cents on the dollar
2000 - 2001 (28%) Decrease 55 to 27 cents on the dollar
The table below shows the computed net income / net revenue (sales) for each of the four years beginning with 1998.
Year Net Income Net Revenue ...