Sony's Corporate liabilities exceed $100 Billion - much like other large companies

[TEXAN*]

http://www.sony.co.jp/SonyInfo/IR/library/8ido180000026man-att/h21_q1.pdf

Sony's total debt as of June 30th, 2009 was 9,121,923,000,000 Yen.

In today's exchange rate, that's $100.9432 billion dollars

 

[Shifty Geezer]

You'll have to quote the part that mentionsthe debt. I'm afraid my Japanese isn't good enough to spot it that .pdf...

 

[TEXAN*]

It's the final figure in the second link.

 

[Rotmm]

2nd link doesn't work

 

[TEXAN*]

Page 38 on the first link.

 

[L. Scofield]

2nd link doesn't work

Copy and paste the URL.

 

[TEXAN*]

Second link removed.

Wasn't working.

 

[TEXAN*]

Here we go -

 

[obonicus]

Wow, will you look and that. And to think that up until this year, they hadn't posted a loss in 14 years. You'd almost think they issued bonds or something.

 

[AlNom]

Anyone have a good translation on Page 10?

NPS分野の売上高は、前年同期比37.4％減少の2,468億円となりました。これは主に、ゲーム事業およびPC 「VAIO」の減収によるものです。 ゲーム事業の売上高は、PSP®「プレイステーション・ポータブル」（以下「PSP®」）、「プレイステーション ３」（以下「PS３®」）ハードウェアおよびソフトウェア全体の売上数量が減少したこと、ならびに円高の影響によ り減収となりました。PS３の販売台数は前年同期の約160万台に対し当四半期は約110万台、PSPは前年同期の約370万 台に対し当四半期は約130万台となりました。PC「VAIO」については、単価下落、販売台数の減少、および円高の影 響により減収となりました。

Google Translate

NPS sector sales grew 37.4 percent to 2,468 billion yen loss. This is primarily business and PC games "VAIO" is due to the decline in sales. Business sales for the game, PSP ® "PlayStation Portable" (hereinafter "PSP ®")," PlayStation 3 "(hereinafter" PS3 ® ") to a decrease in overall unit sales of hardware and software, the impact of the yen and I Ri revenues now. PS3 sales in the quarter was 160 million units this quarter for about 110 million units, PSP is about 3.7 million a year ago Units for the quarter was about 130 million units. PC "VAIO" about the price decline, the decrease in sales, and the shadow of the yen Revenues now the Symphony.

The numbers don't quite make any sense to me...

Bing:

Sales of NPS, decrease in the same period of the previous fiscal year 37.4 % 2, 468 million yen.This is due to the 減収 game business mainly, and PC "VAIO".
Game business sales, PSP ® Playstation Portable (hereafter "PSP ®"), "PlayStation 3" (hereafter "PS３ ®") to the effect that the entire hardware and software sales decreased, and appreciation of the yen now and 減収.Sales volume of PS３ for approximately 160 million for the same period in the previous fiscal year for PSP is approximately 370 million of the year this quarter to approximately 110 million this quarter was approximately 130 million.For a PC "VAIO", by the decrease in rates fall, sales, and appreciation of the yen shadow sound became 減収.

Ah...

 

[JasonLD]

Isn't that a total liabilities figure?

 

[pcchen]

Anyone have a good translation on Page 10?

Google Translate

The numbers don't quite make any sense to me...

Bing:

Ah...

My Japanese is not that good, but I think I can make some senses out of it...

First NPS means network products & services. Apparently for Sony that means games & PC business.

Revenue of NPS in Q1 downed 37.4% from last year to 246.8 billion yen (I'm surprised that both machine translators make mistakes on this number...) The main reason behind this is that both game business and PC (vaio) business declined.

For game business, both PSP and PS3 unit sales declined, also the high value of yen further decreases revenue (in terms of yen). Unit sales of PS3 downed from 1.6 million to 1.1 million, and PSP unit sales downed from 3.7 million to 1.3 million. For PC (VAIO) business it's basically the same story (unit sales down, high value of yen decreases revenue).

 

[AlNom]

Thanks

 

[pcchen]

Isn't that a total liabilities figure?

In the table, current liabilities is 3,649,460 million yen. Long term debt is 1,067,052 million yen. Another big number (the 3,618,878 million yen one) is insurance related. Basically, compared to last year, short term debt decreased, but long term debt increased by a larger amount.

 

[obonicus]

Is this a new release? It seems like it's for 1q 2009. (apr 1 2009- jun 30 2009, but there's a date in the first footnote(?) that says aug 12 2009)

 

[JasonLD]

Why is he making a big fuss about figure in the balance sheet, there are many large corporations that has larger long term debt.

 

[patsu]

[Shrug] I have no idea. In 1Q 2009 (April - June), PS3 was priced at 399/499 too.

 

[vazel]

Can someone that knows how the corporate world works tell us how big an issue this actually is?

 

[DuckThor Evil]

Can someone that knows how the corporate world works tell us how big an issue this actually is?

I'm not an expert, but I would say that using just the total liabilities figure is not that accurate, for example 15 % of that sum is bank deposits from customers (Sony seems to be in banking too). Sony has lot's of assets too and the amount of normal short and long term debt doesn't look that alarming. They are definitely not doing great, but that 100 Billion total liabilities is imo not such a good metric here.

 

[TEXAN*]

Sony's debt was $60 Billion only three years ago, but the debt increased by $40 Billion since the launch of PSX3 and the Blu-Ray format war.