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Cerebralbore101 on 03 November 2017
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Insidb said:
Cerebralbore101 said:

The issue that I have with this thread is that the sources are not PNL/Balance sheets, so it's easy to move money around, or not take certain liabilities into account.

PSN has an income but almost no operating expenses since the other parts of Sony handle that. So it's easy to just say that PSN makes more money than the entirety of Nintendo, so long as you forget to count actual overall company expenses.

Then there's the fact that Sony doesn't just do games, and Nintendo pretty much just does games. Sony may have a higher net income, but how much of that is gaming related? Did they finally turn their non-gaming divisions around?

People are only looking at income statements, and not things like net income, assets, liabilities, operating expenses,.

Nintendo is worth somewhere around 10 billion dollars, and Sony is only worth somewhere around 22 million. Or at least that's according to last year's PNL/Balance sheets.

http://www.nasdaq.com/symbol/sne/financials?query=balance-sheet

http://financials.morningstar.com/balance-sheet/bs.html?t=NTDOY (This is in millions of JPY, but you get the picture)

But at any rate, I'm glad that both companies are healthy. I almost exclusively play on Sony and Nintendo platforms these days. Without them the most exciting games of this year wouldn't exist. 

Honestly, people don't really care too much about CFAs, unless there's true novelties therein. I think you were intially referring to revenue and not net income, which is what most non-investors do. In your case, I think it was just a typo, though. You're spot on with operating income, because debt can be serviced in a myriad of ways, and a proftable company will almost always be able to service its debt load.

Where was I referring to revenue and not net income? I'm a bit lost here, sorry. But yeah, a profitable company can have a load of debt, and so long as they make their debtors happy while maintaining profits, things will be good. But if they stop making money for too long they're toast. Nintendo knows this so they keep a ton of money in the bank for a rainy day.