Lochias WH wrote...
Bourne Endeavor wrote...
Alexraptor1 wrote...
Oh yes poooor EA, practically starving, going bankrupt, need our money to feed all their employees families.....
Please...
EA only made like almost 4 billion USD last year.
Just to put some actual statistics to this point...
Revenue: US$3.589 billion
Operating income: US$-312 million
Net income: US$-276 million
Total assets: US$4.928 billion
Total equity: US$2.564 billion
From wiki, as of Feb 2011. Yep, looks pretty dire. 
They're wealthy, but you do realize you just posted that EA LOST 276 million dollars last year, right? And that their total assets include things like the estimated value of their intellectual properties and the buildings they work in, right?
Actually, I just looked it up and EA's lost hundreds of millions of dollars each year for at least the last three years.
Upon reviewing their financials (in fiscal 2011), just to expand upon the previous point:
[In U.S. dollars]
Revenue: they brought in $3,589,000,000
Operating (loss): Managed internal expenses reduced operating income from $3,589,000,000 to $-312,000,000 (meaning that their cost of doing business was [$3,590,000,000 + $312,000,000 =] ~$3,902,000,000
AKA
they operate at a loss, and that is not a favorable thing for investors
Net (loss): $-276,000,000; this reduces equity, and is obviously not a good thing -- companies are in business to make money, not lose it.
Total assets: (this number is actually) $5,696,000,000 -- this number, while it may seem impressive, is really just a number that includes cash, receivables (money owed to them), investments, inventories, deferred income taxes (because of their posted losses), property, plant, and equipment, and some intangible asses, including $1,716,000,000 in goodwill. You gain goodwill by paying for a company's reputation when you take them over -- aka, when EA purchased BioWare, it paid more than market value for the company because of its good name, despite the fact that the name is currently being dragged through the mud.
Total equity: $2,564,000,000 -- this number tells you how much of a company's assets are financed by investors -- equity financing. Stock sold directly from the company, and retained earnings (which at this point is callled "accumulated deficit" because it is negative, since it has been decreasing on a yearly basis due to posted losses.)
Not previously mentioned, but worth noting:
Total liabilities: $3,341,000,000 -- this number is money they owe to other people; it is debt. Liabilities and equity combined finance assets, and in this case, the company is financed [$3,341,000,000 / $5,696,000,000 =] .5865, or roughly 58.65% by debt. This, by the way, makes the company a more risky proposition to lend money to, which is not a good thing.
As previously noted, the company has posted losses in 4 of the last 5 fiscal years:
2007: 76
This means a Net Income (profit) of $76,000,000
2008: (454)
This means a Net Loss (loss) of $454,000,000
2009: (1,088)
This means a Net Loss (loss) of $1,088,000,000
2010: (677)
This means a Net Loss (loss) of $677,000,000
2011: (276)
This means a Net Loss (loss) of $276,000,000
In short, they are not performing particularly well; they are losing money, and even though the amount they are losing has decreased over the last 3 fiscal years, they are still losing money. Whether they are winning awards or not, this company does not know how to manage its expenses, and, at present,
is not a good investment.
[Edited for formatting]
Modifié par JudgeOverdose, 07 avril 2012 - 07:48 .
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I know that isn't a very popular opinion to old on here, but that's what I feel. Looking forward to the extended cut!
