Microsoft's Cash on Hand Falls to Lowest Sum in Over a Decade While Debt Soars
THE annotated chart above is (hopefully) self-explanatory. We've attempted to make it as clear as possible.
This month Windows continues to lose market share. We also know Windows revenue is down sharply. Microsoft openly admits this and even cautioned this would happen (in advance).
Watch the finances. Debt rose 32 billion dollars in 6 months and cash at hand fell 63 billion dollars in the past 3 months alone.
Sure, many people would say "Activision", but that's not it. If a company takes 32 billion dollars more in debt (when interest on loans is notoriously high) and then blasts 63 billion dollars, it's starting to look like, in spite of over 20,000 layoffs the company just lost like 0.1 trillion dollars. That's in spite of de facto bailouts, too. █
"Microsoft, the world’s most valuable company, declared a profit of $4.5 billion in 1998; when the cost of options awarded that year, plus the change in the value of outstanding options, is deducted, the firm made a loss of $18 billion, according to Smithers."