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, …show more content…
This is largely due to the sharp decline in depreciation between 2013 and 2014, when the company was hacked and suffered a huge financial hit. As a result of the hack, Sony took a large hit to their revenue and brand, which they attempted to make up for by selling a large portion of their assets, resulting in the decrease to accumulated depreciation when compared to total percentage of assets. Since then, Sony hasn’t been able to return its depreciation to what it used to be, likely also due to their development into other, intangible, aspects of the entertainment industry.
LONG-TERM DEBT
Long-Term Debt 2016 2015 2014 2013 Change
Balance Sheet 556,605 712,087 916,648 938,428 …show more content…
In fact, the ratio was negative in 2014 due to the company’s net loss after the Sony hack. Since then though, the ratio has shown a strong increase, which suggests that the company is becoming more profitable as time goes on. Unfortunately, this increase is harried by the sharp decrease from 2015. The overall volatility of the ratio shows that it, and by extension the company, are unstable and unpredictable and that investing in Sony, even for a shorter period of time, carries a big risk as to whether you’ll make a profit or lose
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, …show more content…
This is largely due to the sharp decline in depreciation between 2013 and 2014, when the company was hacked and suffered a huge financial hit. As a result of the hack, Sony took a large hit to their revenue and brand, which they attempted to make up for by selling a large portion of their assets, resulting in the decrease to accumulated depreciation when compared to total percentage of assets. Since then, Sony hasn’t been able to return its depreciation to what it used to be, likely also due to their development into other, intangible, aspects of the entertainment industry.
LONG-TERM DEBT
Long-Term Debt 2016 2015 2014 2013 Change
Balance Sheet 556,605 712,087 916,648 938,428 …show more content…
In fact, the ratio was negative in 2014 due to the company’s net loss after the Sony hack. Since then though, the ratio has shown a strong increase, which suggests that the company is becoming more profitable as time goes on. Unfortunately, this increase is harried by the sharp decrease from 2015. The overall volatility of the ratio shows that it, and by extension the company, are unstable and unpredictable and that investing in Sony, even for a shorter period of time, carries a big risk as to whether you’ll make a profit or lose