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Kasz216 on 16 February 2014
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Lawlight said:
Kasz216 said:

I don't see aywhere where that forbes number says it's from 3 quarters ago...

Where did your site  Get thei number from is my question

If you look at the Financial reports...

copy here

http://www.neogaf.com/forum/showthread.php?t=759731

 

Cash on hand would be the first 3 on  the page marked 4.

Cash on hand =

Cash & Deposits

Short Term Securities (Aka ones available within 3 months)

and  Notes and accounts receivable (Money they are owed)

 

Divide it by a 101 Yen exchange rate...

and you get.

11.04 Billion.

 

So yeah... 11 Billion.  The 0.02 off is probably just due to exchange rates.

 

It should of been common sense that Nintendo's Cash on hand didn't go from 11 million to 8 million.  4 million loss.  Which you'd know about if it would of happened.

Forbes page says as of May 2013 so that's last year.

So, in terms of cash that that have in the bank, it's only $5.5B?

Depends what you consider in the bank.   If you mean in an actual bank account.  Then yeah.

Investment people would consider short term investment securities in the bank, because they can be liquidated pretty much as fast.

So, say for example Nintendo suddenly owed the Japanese government 9 Million Dollars by the end of the month due to finding out Pokemon causes cancer. 

They'd be able to pay that with ease without requiring a loan.

 

Certificate of Deposit and other guranteed short term bonds are more or less the bank accounts for the rich, and cash rich companies.

A 50-50 split is pretty Normal.

 

For example, Sony has about 8 Million dollars in cash , and 7 Million dollars in securities.  (Not a typo.)

Meanwhile are owed 12 Million.  So they'd have about a Cash on hand of about 27 Million Dollars.

 

Which just shows how ridiculious Nintendo's cash on hand is... since it's over 400X What Sony's cash on hand is.    Sony isn't typical since it's in a ton of debt... but Nintendo's Cash on hand it out of control.basically Nintendo has cash reserves that are quite honestly sort of indefensible...   They're like a high-tech trying to grow silicon valley company like Apple or Amazon or Google...   except they haven't bought anything.

The only reason you have these kind of cash reserves normally is if you plan to buy up some companies to grow...

 

yet they've been sitting on this kind of cash FOREVER.

Considering the up and down nature of the videogame buisness they should of bought something non-gaming related, like some investment banks (Sony's best performer), Or fitness clubs like Konami, or any other number of things that would provide relativly steady revenue. 


Instead of relativly unused and unchanged that's money that could be used making a decent return on investment.

 

Nintendo's stubborn and wants to stay only a gaming company... but with that kind of money you really can't.

 

It's like having a rich uncle with 15 million dollars just sitting in a banking account.