YOUR COMPANY

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Executive Summary

• I started this project knowing that Nokia had not
  had the year that they had hoped in 2004. Their
  sales had gone down but after making some
  improvements especially in multimedia, networks,
  enterprise solutions and phones I believe that
  they are going to improve their sales.
• http//www.nokia.com/A402795

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Part A. Introduction

• Jorma Ollila (Chairman and CEO)
• Espoo, Finland
• Fiscal year ended December 31, 2005
• 4 business groupsMobile phones, Multimedia,
  Enterprise Solutions, Networks
• Nokia operates all over the world. The geographic
  area is Europe, Middle-East and Africa, China,
  Asia-Pacific, North America and Latin America.

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Part A. Audit Report

• PricewaterhouseCoopers Oy
• Nokia's auditors reviewed all the financial
  information, and found that they had been
  prepared according to the Finnish Accounting Act.
  The financial statements gave a correct view of
  all financials.

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Part A. Stock Market Information

• Most recently Nokia's stock was 18.58
• Dividend per share 0.430
• In 04/29/2005
• Nokia is doing good and owning their shares would
  not be a bad idea. My opinnion is to hold on to
  the stock because it is going to go up this year.
  But if you do not own any my suggestion is to
  buy.

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Part B. Industry Situation and Company Plans

• The mobile phone industry is still growing. Nokia
  has been succesfull in expanding it's mobility
  into new areas such as
• imaging, entertainment,
• games, media, and
• enterprises. According
• to Nokia there are still
• opportunities to sell
• mobility to completely new users.
  

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Part C. Income Statement

• EuroM 2004 2003
• Gross Profit 11,134 12,218
• Income from 4,330 5,011
• Operations
• Net Income 3,207 3,592
• Nokia uses a multi-step income statement
• Even though Nokia did suffer some downfall but I
  believe that with their new ventures their
  numbers are going to climb back up.

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Part C. Statement of Cash Flows

• Cash flow from operating income is more than net
  income
• Nokia's long lived assets have gone down in 2004
  but some of their current assets such as liquid
  assets and inventories have grown.
• Nokia receives most of it's money from
  investments
• Even though sales have gone down cash has
  increased.

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Accounting Policies

• Revenue recognition occurs when evidence of an
  arrangement exists, delivery has occured, the fee
  is fixed and determinable, and collectibility is
  probable
• Inventories Nokia uses the FIFO method (first
  in, first sold)
• Short term investments All highly liquid
  marketable securities purchased with maturity at
  acquisition of more than three months
• Property, plant and equipment stated at cost
  less accumulated depreciation. Depreciation is
  recorded on a straight-line basis.
• Cash and cash equivalents Bank and cash consist
  of at bank and hand. Cash equivalents cosist of
  highly liquid available-for-sale investments.

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Part E. Financial AnalysisLiquidity Ratios

• EuroM 2004 2003
• Working Capital 11,539 11,803
• Current Ratio 2.44 2.42
• Receivable turnover 6.1 5.5
• Average days' sales 59.8 66.4
• uncollected
• Inventory turnover 14.6 14.1
• Average days inventory 25 25.9
• on hand
• Overall there was only a small change in Nokia's
  liquidity.

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Part E. Financial AnalysisProfitability Ratios

• 2004 2003
• Profit margin 0.11 0.12
• Asset turnover 1.3 1.2
• Return on assets 0.14 0.15
• Return on equity 0.22 0.24
• Overall the profitability of Nokia went down in
  2004. Only the asset turnover ratio was larger
  than the year before. This shows that Nokia was a
  little better in 2004 to use assets to produce
  sales.

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Part E. Financial AnalysisSolvency Ratio

• 2004 2003
• Debt to equity 0.6 0.5
• Having a debt to equity ratio of under 1 means
  that the stockholders control the company

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Part E. Financial AnalysisMarket Strength Ratios

• 2004 2003
• Price/earnings per share 27.3 24.8
• Dividend yield 2 1.6
• Overall these results did not change much . These
  numbers are an indication to the investors about
  what kind of return they get and how succesful
  the company is.

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