Balance Sheet Analysis, Securities, Investments, And Other Essay

2527 Words Jun 9th, 2016 null Page
BALANCE SHEET ANALYSIS
SECURITIES, INVESTMENTS, AND OTHER
Securities, Investments, and Other 2016 2015 2014 2013 Change
Balance Sheet 9,069,209 8,360,290 7,737,748 7,118,504 1,950,705
Vertical Analysis 54.69% 52.80% 50.46% 50.09% 4.30%
Horizontal Analysis 127.40% 117.44% 108.70% 100.00% 27.40%
When looking at the vertical analysis of Sony’s balance sheets, the biggest change is in securities, investments, and other, which encompasses the company’s investments, as well as their sales and devaluations. The increase in the percentage of how much of the assets section it encompasses is due to the company’s competition. Due to Microsoft and Apple’s domination of the technology industry and Disney’s increasing hold on movies and other entertainment, Sony is choosing to instead invest in intangible goods, which results in an increase in investments when compared to total assets. It also explains the almost 2 million yen increase in the company’s account.
ACCUMULATED DEPRECIATION
Accumulated Depreciation 2016 2015 2014 2013 Change
Balance Sheet -1,821,545 -1,863,496 -1,796,266 -2,030,807 209,262
Vertical Analysis -10.92% -11.77% -11.71% -14.29% 3.37%
Horizontal Analysis 89.70% 91.76% 88.45% 100.00% -10.30%
Note: Despite the VA change being shown as 3.37%, when looking at the absolute value of the account, it should be taken into account that depreciation really decreased by 3.37%
Over the past four years, the accumulated depreciation for Sony’s assets has decreased when looking at…

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