Broccoli Storm
CAGiversary!
- Feedback
- 28 (100%)
On the more technical side of things...
Like someone mentioned before, debt to a corp. like Sony is a lot different than it is to a normal person like you and me. First off, financial statements can be a very tricky thing to base a company's profits/losses off of. Companies and their accountants often move numbers around to get certain benefits, make certain areas of the company look more profitable, etc. Second, for a company as big as Sony, even if they are making a loss every year, if they stopped production, they might be making an even bigger loss, so staying in business is the lesser of the two losses. With a company as huge as Sony, there are plenty of fixed costs. These costs are there whether they're making money and products or not.
Like someone mentioned before, debt to a corp. like Sony is a lot different than it is to a normal person like you and me. First off, financial statements can be a very tricky thing to base a company's profits/losses off of. Companies and their accountants often move numbers around to get certain benefits, make certain areas of the company look more profitable, etc. Second, for a company as big as Sony, even if they are making a loss every year, if they stopped production, they might be making an even bigger loss, so staying in business is the lesser of the two losses. With a company as huge as Sony, there are plenty of fixed costs. These costs are there whether they're making money and products or not.