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savisn on 23 October 2013
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ishiki said:
savisn said:
ishiki said:
Company Total Assets Total Liabilities Quick Ratio (Higher Is Better)
Nintendo 16.3 Billion 3.5 Billion 5.22
Actvision Blizzard 13.4 Billion 3.2 Billion 4.38
Capcom 1.04 Billion 410 Million 1.69
Sega Sammy 528 Million 208 Million 2.63
Square-Enix 1.98 Billion .79 Billion
 3.42
Take 2 1.277 Billion 689 Million 2.48
EA 5.07 Billion 2.8 Billion

1.21
Sony 155 Billion
 125 Billion

.76


While your analysis is correct, you aren't showing a Quick Ratio from what I can tell unless your column headings are incorrect.   You've shown Assets to Liabiliities which isn't the same.  The QR is more concerned with liquidity so removes non-liquid items like plant etc.     The calculation is here:  http://www.investopedia.com/terms/q/quickratio.asp

yeah my mistake. I just did Total Assets/Total Liabilities which was wrong. It should have been (Current Assets-Inventory)/Current liabilities for quick ratio. Which ofcourse being different numbers changes it altogether,  and capcom does have a bit of issues in that aspect comparativelyAll of which are unrelated to the other numbers.

I made the table a bit quick and made some mistakes. I'm edited them, if anyone wants to look and check and correct

Looks good now.   Nice job bringing some numbers to the discussion.   My suspicion is that a QR in videogame development above 1.5 is adequate and that they fluctuate quite a bit.  The main expenses would be game development labor I would think.  Revenue is notoriously spiked at game release while expenses build relatively evenly throughout a game's development cycle.  Assuming they don't have a lot of debt covenants that get broken and send them into a death spiral CAPCOM should be fine.  Revenue from MH4 starts hitting now while all but the marketing expenses were being spent over the last few years.   Presumably they keep labor expenses relatively even so it was low due to meh revenue performance of RE and DMC.  It probably jumps up quite a bit this quarter.    The main risk for these companies is a big flop or 2 back-to-back since the fixed costs of developing and releasing a game are huge.  It would be interesting to see how the QR changes over the next while for them and others like UbiSoft who have had some big misses lately.