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Forums - Nintendo - Nintendo currently has $4.7 billion in the bank

phaedruss said:
sethnintendo said:
phaedruss said:
That doesn't sound good. I know they hired a bunch of people and bought a bunch of shares, but damn 4-5 billion down from what a few years ago?

They also built a new R&D building.

http://www.gamasutra.com/view/news/219660/New_Nintendo_development_center_opens_in_Kyoto.php

However, that only accounts for ~186 million dollars.  I believe they also spent ~150 million on an unknown acquisition perhaps relating to their quality of life platform they have been talking about.

http://nintendoeverything.com/nintendo-confirms-it-spent-150-million-on-new-tech-for-a-non-japanese-non-games-company/


Oh yea the builiding, but like you said that wasn't a ton all in all. Hopefully, whatever it is that they've invested in pays off soon. They could be looking at even more losses. That is of course assuming a lot of these losses were from investments.

What everyone misses is the massive reduction in liabilities, which is smart financial management. Think of it this way, to compare to a personal level : 

Nintendo is like a person who started a few years ago with $40k in Credit Card debt, $10k in cash, and $10k in other assets. Now in current year, they have $10k in Credit Card debt, $6k in cash, and $12k in assets (along with some major home improvements and maintenance out of the way).

The analogy isn't perfect, but reducing long-term liabilties makes it dramatically easier to be profitable even with the same income.



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More than enough money to buy all of Capcom's good IPs!



                
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Arkaign said:

What everyone misses is the massive reduction in liabilities, which is smart financial management. Think of it this way, to compare to a personal level : 

Nintendo is like a person who started a few years ago with $40k in Credit Card debt, $10k in cash, and $10k in other assets. Now in current year, they have $10k in Credit Card debt, $6k in cash, and $12k in assets (along with some major home improvements and maintenance out of the way).

The analogy isn't perfect, but reducing long-term liabilties makes it dramatically easier to be profitable even with the same income.


Well according to the chart on page 4 I think, they have the same liabilities as 2012 but far less than 2010.



Eddie_Raja said:
Mnementh said:
mii-gamer said:
Can someone explain to me in simplistic terms what happened to the rest of the cash?

Most of it is gone because Yen has lost value against dollar and Nintendo make financials in Yen, while we discussing Dollar (why we ever do that). In Yen Nintendo still has lost money, but not so much against 2012, more against 2011 and 2010. Well, the answer to that is 3DS and WiiU.

Yes we should only talk about their money in yen because they only do business in Japan right?

Their bank account is in Yen and it was about their money in Yen. Because of the currency changes people here are asking what they blew 6 billion Dollar on - and the answer is they didn't, but their money in the bank is no longer worth the ame in Dollar as it was before. And I think we should talk about the real numbers not make wild currency changes, because with the same we could also change it into Renminbi or something else. Probably we find some currency, where exchange values have changed in a way, that NIntendo has even more money in this currency than two years ago. It just makes no sense to compare the dollar-numbers from now and from two years ago, as the basis has changed.



3DS-FC: 4511-1768-7903 (Mii-Name: Mnementh), Nintendo-Network-ID: Mnementh, Switch: SW-7706-3819-9381 (Mnementh)

my greatest games: 2017, 2018, 2019, 2020, 2021, 2022, 2023, 2024, 2025 

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bets: [GTA6]

I mean for real... These guys need to buy Mega Man, Ace Attorney, Monster Hunter, and maybe RE.
Just buy Crytek outright. Crytek could lead on the games for Nintendo's next system.



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That's plenty of $$$, in fact it's probably too much but Nintendo has always favored having a large cash reserve. It's smarter to put that money into short term investments like stocks and bonds right now.

If I gave you $150,000 tomorrow, you wouldn't just leave it sitting in your bank account.

The important number to look at is cash PLUS short term investments, they also bought a ton of their own stock.