M$ layoff 5,000 and Sony loss correction

[scottie]

NJ5 said:

scottie said:
From the site http://financial-dictionary.thefreedictionary.com/Operating+Income

Operating income, representing income from ordinary business activities, excludes expenses, such as interest and taxes.

Which implies to me that Sony lost 1.7 billion from the gap between sales revenue and the sum costs of manufacture, employing workers, advertising etc. They also had to pay the sum of 1.2 billion dollars on taxes, and to cover the interest raised on the company's debt

No, it's the opposite. They expect to lose $2.9 billion on their business, but including tax considerations and other income the loss is "only" $1.7 billion.

Depending on what you're using the numbers for, one or the other figure is more important. For this year, net income is more important, for the future I'd say operating income is more important as it reflects what's really happening in their operations (if the negative factors don't improve).

 

 

Whoops, I never seem to be able to work out economics stuff. Which is awkward, cos I'm doing a course on it after the holidays (they make engineers do economics for some reason)