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Soundwave on 27 October 2017
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Kai_Mao said:
Miguel_Zorro said:

Nintendo does not have $4.6 Billion in the bank.  They burned through $2 Billion in cash.  They improved their cash flow over the last fiscal year, so they're back up to $2.9 Billion.

https://amigobulls.com/stocks/NTDOY/cash-flow/annual?t=ibc

I wonder how they lost that much within a few years. I could see the failure of the Wii U and the struggles of the 3DS making an impact, but $2-3 billion impact? Either it is because they started making more investments around 2013-14 (i.e., starting R&D on mobile, theme parks, etc.) or something else came up.

It's not like that. Companies transfer cash into stocks/bonds for example, having a monstrous pile of cash just sitting there often is not the best use of that cash. 

Just like with you, if you got $1 million dollars, it would be smarter to put that cash in an index fund (stocks) and earn a better return on that money than just leaving it in your savings account. Companies do the same thing.