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Technology Stocks : Lucent Technologies (LU)
LU 2.680-1.1%3:59 PM EST

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To: Chuzzlewit who wrote (12028)1/4/2000 5:30:00 PM
From: Mr.Fun  Read Replies (1) of 21876
 
Chuzz,
here is the discrepancy - As you know, the balance sheet is a snapshot taken at the very end of the FY, while the income statement is a compilation of the entire year. Since quarterly results are both growing sharply and seasonal and since working capital levels vary according to business activity, I would argue that a annualization of 4Q sales and COGS is the more appropriate measure to use in calculating these metrics. Nonetheless, you are correct that the results by both methods are similar enough to use for YoY comparisons.
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