Grimes on 18 November 2009
| CommonMan said: Assets have exactly zilch to do with profits, and don't really effect stock prices either (only secondarily when referring to the companies current ratio, which is assets/liabilities and should be over 1.50, this tells banks whether or not a company can pay their bills and whether they should loan to the company or not). I'm not saying you are wrong, I'm just saying that listing the companies assets doesn't really mean diddly when it comes to the comapnies financial health. Especially for a manufacturing company whose assets are typically tied up in what are called "plant assets', things like buildings, equipments and automobiles. If you knew what percentage of those assets were actually somewhat liquid (cash, short-term investments) then you could use it to say that Sony is "doing good" based on their assets. |
Assets can cost money since things like factories have employees, rent, insurance, taxes, upkeep, maintence, debt and other ongoing expenses.
Anyone can guess. It takes no effort to throw out lots of predictions and have some of them be correct. You are not and wiser or better for having your guesses be right. Even a blind man can hit the bullseye.
