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[Toyo Keizai] Nintendo has the highest cash reserves of all companies in Japan. Sony is 4th
- Thread starter eKongDiddy
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So Nintendo is #1 because they have no hard assets they are investing in while Sony and Mitsubishi have several? Am I understanding that correctly?
They are number one by the specific metrics the article decided to use as a measuring stick. In this case, cash reserves.
I want to add cash tends to generate lowest return out of all assets. If your cash earns higher return than your main business, you should consider closing the business.
Company usually holds enough cash to survive what is called operating cycle, which is the difference in timing between receiving money from customers and paying suppliers.
This is usually a very complicated issue since it will depends on production lead time, delivery to customer, inventory management, credit terms, etc.
Different business will require different cash reserves level.
If we're going by the WHOLE picture, Sony is worth more as a corporation and their assets are worth more because they deal and invest in a lot more things than Nintendo does (though Nintendo is also expanding now), which is why they're higher on the rung in terms of market cap. A large warchest does not necessarily mean they're the richest overall.
But yeah, in terms of the specific factors taken in by the report, sure. Nintendo is on top right now in Japan. Cash reserves are used to weather the storm, and right now with no debt and a symbolic Scrooge-esque Money Bin, Nintendo can weather a good amount.
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Other metrics used to analyze performance include liquidity and profitability ratios, earnings per share, dividend returns, cash flow including capital expenditures, EBITDA, etc., etc.
You can come to many different conclusions by isolating certain specific points the way the articles and OP title did. It's the same way that you could make a headline about how Amazon is a shitty company because they've never turned a profit in decades of operation, but you'd be wrong because they don't turn a profit due to investing all of that money in growing their business.
You can come to many different conclusions by isolating certain specific points the way the articles and OP title did. It's the same way that you could make a headline about how Amazon is a shitty company because they've never turned a profit in decades of operation, but you'd be wrong because they don't turn a profit due to investing all of that money in growing their business.
Exactly. Nintendo has a large room full of money, but as mentioned earlier in the thread, cash tends to return jack shit. It's great to weather bad times, but now that Nintendo seems to have gotten it right I would hope that they put that money to use, as they're unlikely to need it for bolstering the company in lean times for the next few years.That said. Semantics aside...
The most amazing part is, Nintendo is almost entirely focused on video games, while it's just one part of Sony business divisions.
OP
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They definitely could be acquiring/opening more studies or using it for deals with other companies.
Nintendo has always had huge cash reserves. They're very conservative with their money, even the WiiU's failure was something they could easily afford. With the Switch's success, there's no surprise how quickly they rose to the top as they were already near there in the first place.
Hopefully they invest in more licensing than theme parks and film outsourcing over the next 10 years.
Hmm. The thread title and articles seem to be giving people the wrong idea.
Nintendo is not a bigger company than several of the ones in the comparison. They merely have more cash.
I think it is impossible to accurately value a company with people at all. Like how valuable is Konami without Kojima? How profitable is Konami without Kojima? Its hard to place dollar values on people and it is hard to evaluate how much good will a company has so it is hard to accurately value a company especially a videogame company.
Nintendo is known for carrying large amounts of cash on their balance sheet.
https://www.amazon.com/gp/bestsellers/2017/videogames/ref=zg_bsar_cal_ye
Seen the best sellers of 2017 on amazon? Remove the PSN cards and you're left with a near Nintendo domination. Mario Odyssey is #1 with only a month out.
#itprintsmoney
Seen the best sellers of 2017 on amazon? Remove the PSN cards and you're left with a near Nintendo domination. Mario Odyssey is #1 with only a month out.
#itprintsmoney
I know it's unrealistic but how much would it cost to buy Sega from Sega Sammy? 4 billion? Less? More?
Either way this is very good for Nintendo. Didn't they lose a bit of that cash reserve during WiiU3DS?
Either way this is very good for Nintendo. Didn't they lose a bit of that cash reserve during WiiU3DS?
Indeed, they are. But I could have sworn that they made the most money of all companies in Japan one of the Wii years.
Thankfully it is not impossible to value many companies. In fact, many people make careers out of it.
This is possible. I don't follow the Japanese stock market all that much, and especially not when I was a kid.
They did the Switch and bought that company to make smartphone games
Toyota seems to actually be at 105th place with 683億円
That converts to 600-something million dollars in cash reserves.
Nice. Nintendo is well and truly important to Japan aren't they?
Deserved. Talent wins.
These things often go up and down, I'm not sure if I remember seeing Nintendo in first before. I remember them at 2 or 3.
Deserved. Talent wins.
These things often go up and down, I'm not sure if I remember seeing Nintendo in first before. I remember them at 2 or 3.
Dammit, I KNEW I should have got in on Paulcoin. Cryptocurrency is such a volatile market right now
Back in the Wii era, they were basically the third biggest company in Japan in terms of value with a worth over 85 billion. That's all in the past now, obviously. But hey, we're climbing back up.
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Sorry I took the title from Nintendo Life and their sources. I'm not seeing how saying "Nintendo is the richest company in Japan" is misleadin. I apologize if so!
Wonder what they will invest in going forward. I remember Iwata wanted to expand into Quality of Life fields (seemingly exercise related ventures). but that idea seems to have ended with his death.
The non financial savvy getting ahead of themselves to post things really doesn't do any good.
Market cap is the usual way to price a company's worth, see the news about Apple or Amazon being the world's most valuable company.
Having large cash or net cash reserves is not particularly valuable in today's financial world.
Not only is this thread sensationalist, the responses are equally deluded with hard Nintendo fans crowing -- with no idea what they're crowing about.
That being said, Nintendo is an incredibly valuable company. 3 events driving their growth now. Switch, Mario Run/FE (games available on mobile) and Pokemon Go (AR).
Their business is nowhere as large as Sony's Playstation but the market value assigned is enormous because of the IPs it owns and can tap into at any time.
Market cap is the usual way to price a company's worth, see the news about Apple or Amazon being the world's most valuable company.
Having large cash or net cash reserves is not particularly valuable in today's financial world.
Not only is this thread sensationalist, the responses are equally deluded with hard Nintendo fans crowing -- with no idea what they're crowing about.
That being said, Nintendo is an incredibly valuable company. 3 events driving their growth now. Switch, Mario Run/FE (games available on mobile) and Pokemon Go (AR).
Their business is nowhere as large as Sony's Playstation but the market value assigned is enormous because of the IPs it owns and can tap into at any time.
It's not so much misleading as that the readers have to read the article to grasp the context of what richest here meant. I edited it for additional clarity at first glance
Hoarding cash is common for businesses that are run traditionally. They don't like to be leveraged.
An example is Microsoft, where Bill Gates used to run it debt free with huge reserves of cash. He was eventually convinced to run in the modern way, because everyone else was doing it, and everyone was doing it because debt interest is cheap relative to company growth.
Another reason to hoard cash is to defend against hostile acquisitions, or to make acquisitions of your own. 2 years ago Apple held 250b USD in cash, 30x Nintendo. They bought a bunch of companies.
Nintendo does this because it's a very traditionally run business. Conservative. It works really well because they have incredible IPs and a culture that puts great game design first, so the formula has continued to work across generations.
Okay, new title makes more sense. I thought that somehow Nintendo shot up to the top as one of the richest Japanese companies. They just have the largest cash reserves which isn't all that surprising to me.
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