Over the past three months, shares of Sony Group SONY moved lower by nan%. Before having a look at the importance of debt, let us look at how much debt Sony Group has.
Sony Group's Debt
According to the Sony Group's most recent financial statement as reported on June 22, 2021, total debt is at $2.09 trillion, with $773.29 billion in long-term debt and $1.32 trillion in current debt. Adjusting for $1.79 trillion in cash-equivalents, the company has a net debt of $305.88 billion.
Let's define some of the terms we used in the paragraph above. Current debt is the portion of a company's debt which is due within 1 year, while long-term debt is the portion due in more than 1 year. Cash equivalents include cash and any liquid securities with maturity periods of 90 days or less. Total debt equals current debt plus long-term debt minus cash equivalents.
Shareholders look at the debt-ratio to understand how much financial leverage a company has. Sony Group has $26.35 trillion in total assets, therefore making the debt-ratio 0.08. As a rule of thumb, a debt-ratio more than one indicates that a considerable portion of debt is funded by assets. A higher debt-ratio can also imply that the company might be putting itself at risk for default, if interest rates were to increase. However, debt-ratios vary widely across different industries. A debt ratio of 40% might be higher for one industry and normal for another.
Why Shareholders Look At Debt?
Debt is an important factor in the capital structure of a company, and can help it attain growth. Debt usually has a relatively lower financing cost than equity, which makes it an attractive option for executives.
However, interest-payment obligations can have an adverse impact on the cash-flow of the company. Equity owners can keep excess profit, generated from the debt capital, when companies use the debt capital for its business operations.
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FAQs
Analysis. Sony's total debt for fiscal years ending March 2019 to 2023 averaged 21.795 billion. Sony's operated at median total debt of 22.359 billion from fiscal years ending March 2019 to 2023. Looking back at the last 5 years, Sony's total debt peaked in March 2023 at 29.193 billion.
What is Sony's long term debt? ›
Sony long term debt for the quarter ending June 30, 2023 was $13.192B, a 43% increase year-over-year. Sony long term debt for 2023 was $13.081B, a 22.11% increase from 2022. Sony long term debt for 2022 was $10.712B, a 47.37% increase from 2021. Sony long term debt for 2021 was $7.269B, a 24.43% increase from 2020.
Does Sony have high debt? ›
Debt Level: SONY's net debt to equity ratio (48.6%) is considered high. Reducing Debt: SONY's debt to equity ratio has increased from 34.1% to 58.7% over the past 5 years.
What is Sony debt-to-equity ratio? ›
Sony Group Debt to Equity Ratio: 0.5354 for March 31, 2023.
What is the debt to equity ratio? ›
The debt-to-equity ratio (D/E ratio) shows how much debt a company has compared to its assets. It is found by dividing a company's total debt by total shareholder equity. A higher D/E ratio means the company may have a harder time covering its liabilities.
How much of Sony does BlackRock own? ›
2023-02-13 - BlackRock Inc. has filed an SC 13G/A form with the Securities and Exchange Commission (SEC) disclosing ownership of 91,250,816 shares of Sony Group Corporation - ADR (US:SONY). This represents 7.2 percent ownership of the company.
What was the downfall of Sony? ›
One of Sony's major failures was the company's inability to shift from a product-centered culture to customer-centered production. The situation led to its loss of opportunities where clients were only interested in companies that provided items that could satisfy their demands.
Why is Sony losing money? ›
Sony said its decline in gaming profits was due to an increase in game development and acquisition costs (including its purchase of Bungie), as well as a negative impact of foreign exchange rates reflecting a high ratio of USD costs.
Where does Sony make most of its money? ›
The company generated over 88 billion U.S. dollars in total annual revenue in 2021. Around one third of Sony's income comes from its game and network segment, which includes the company's prominent line of gaming consoles.
What company owns the most debt? ›
2022 Top 20
| Rank | Company | Debt (billions of US$) |
|---|
| 1 | Evergrande Group | 340 |
| 2 | Toyota | 217 |
Predictably, the most common form of debt (32%) is credit or store card debt (30% of over 55s), followed by 16% who have personal loans and 15% who have overdrafts.
What is the highest ranking debt? ›
The United States has the world's highest national debt at $31.4 trillion.
Why do investors look at debt to equity ratio? ›
For investors, the debt to equity ratio is used to indicate how risky it is to invest in a company. The higher the debt to equity ratio, the riskier the investment.
Is 40% a good debt to equity ratio? ›
By calculating the ratio between your income and your debts, you get your “debt ratio.” This is something the banks are very interested in. A debt ratio below 30% is excellent. Above 40% is critical. Lenders could deny you a loan.
What is the highest debt to equity ratio? ›
The maximum acceptable debt-to-equity ratio for more companies is between 1.5-2 or less. Large companies having a value higher than 2 of the debt-to-equity ratio is acceptable.
What is Microsoft's total debt? ›
Total debt on the balance sheet as of March 2023 : $60.52 B
According to Microsoft's latest financial reports the company's total debt is $60.52 B. A company's total debt is the sum of all current and non-current debts.
What is the total equity of Sony? ›
Sony Group Shareholders Equity (Quarterly): 54.26B for March 31, 2023.
How much cash does Sony have on hand? ›
Sony Cash on Hand 2010-2023 | SONY
Sony cash on hand for 2023 was $13.389B, a 37.59% decline from 2022. Sony cash on hand for 2022 was $21.452B, a 51.34% decline from 2021. Sony cash on hand for 2021 was $44.081B, a 42.59% increase from 2020.
Is Sony a billion dollar company? ›
As of August 2023 Sony has a market cap of $102.00 Billion. This makes Sony the world's 135th most valuable company by market cap according to our data.
