Earlier this year we learned that Sony are in trouble financially. This will likely cause cuts in their gaming business including PS4 and how they go about their stategies. However, how much trouble are they in? Well I'm happy to tell you they look to be stable and fine :)
The first article is from February of this year. The second is showing where they stand today.
One of the worlds largest ratings companies, Standard & Poor’s, has lowered Sony’s credit rating again to BBB+ and has also moved them into the negative column which usually signals another downgrade to come.
The reason for the downgrade is that Sony has been making a loss year on year in it’s TV division since 2004.. can you believe that it’s been 7 years since that department made any money at all and yet Sonyhasn’t changed their policy of overpriced televisions since then.
Apparently this year that division is going to lose Sony a whopping R21 Billion and with no recovery seen on the horizon at all it’s likely that Sony will continue to haemorrhage cash for the next few years at least.
But it’s not all bad news, according to a previous report the PlayStation department only lost R8.32 billion last year so it’s doing better… in a terribly horrifying sort of way.
All in all Sony is not looking to be in a good place and hopefully the new president and PS Vita can turn this ship around, hey at least the captain isn’t Italian so they have a good chance still.
|Sony Probability Of Bankruptcy|
Probability Of Bankruptcy breakdown for SonyFor stocks, Probability Of Bankruptcy is normalized value of Z-Score. For funds and ETFs it is derived from a multi-factor model developed by Macroaxis.The score is used to predict probability of a firm or a fund going into bankruptcy or experiencing financial distress within next 24 months. Unlike Z-Score, Probability Of Bankruptcy is the value between 0 and 100 indicating the actual probability the firm will be distressed in the next 2 fiscal years.
Companies or funds with Probability Of Bankruptcy above 90% are generally considered to be high risk with a good chance of bankruptcy in the next 2 years. On the other hand entities with Probability Of Bankruptcy of less than 15% will most likely experience some growth in the next 2 years. Probability Of Bankruptcy is based on Macroaxis own algorithm and can be used by auditors, accountants, money managers, financial advisers, as well as day traders to evaluate unsystematic risk of a stock, fund or ETF.
Sony Probability Of Bankruptcy AssessmentNEElectronic EquipmentConsumer GoodsAll Equities202530354022.52629.6430.234.87
Based on latest financial disclosure Sony Corporation has Probability Of Bankruptcy of 22.526%. This is 25.41% lower than that of Consumer Goods sector, and 24.0% lower than that of Electronic Equipmentindustry, The Probability Of Bankruptcy for all stocks is 35.4% higher than the company.
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