Sony is one of the most expensive companies in the world, with a market capitalization of almost $100 billion. But is it worth all the money? Let’s discuss.
The company’s parent company is Sony Corporation, which is worth $1.56 billion. If you add the value of all of its subsidiaries, including Sony Pictures, Sony Music and Sony Mobile, you get a grand total of $3.71 billion. Those numbers might not seem like much, but they’re enough to make you wonder: Is Sony worth it? The short answer is no. Because of its high costs, the company is not a good investment. It does some things right, but most of the time it costs too much. Let’s discuss some of the good and bad things about Sony.
What makes Sony so worth it?
Sony is a huge electronics company. It’s well-known for making televisions, audio equipment, and smartphones, among other things. All of those things are worth money. The same goes for its chemicals and services divisions. It is well-known as a company that makes things, which is why its market capitalization is so high.
Sony is also one of the few electronics companies that has managed to make a profit. Its profits have gone up every year for the past five years, and it had an operating income of $1.9 billion in 2018.
These figures show that Sony is more than just a giant corporation. It’s actually a business that spends a lot of time and effort making money.
The bad of Sony
One of the reasons why Sony isn’t worth as much as its components is that it doesn’t do well as a whole. The company’s profit margins are very low, with just 1.4% in 2018. That’s because each division has such a low profit margin. For instance, Sony Pictures has an operating profit margin of -3.8%, Sony Music has an operating profit margin of -10.2%, and Sony Mobile has an operating profit margin of -4%.
The low profit margins are dangerous for the company because it leads to high costs. Many of the things it does are expensive, and it often has to spend a lot of money to make a profit. That’s one of the reasons why it is so expensive.
What makes Sony so not worth it
One of the things that makes Sony so not worth it is its culture. It is notorious for low wages and promoting sexism in the workplace. Women are especially discriminated against in the company.
It’s not just the workers at Sony who are treated unfairly. Investors are also treated poorly. Sony has a bad corporate culture that hurts itself more than others.
Investors are people who trust the company to use their money wisely. They want it to make money and grow, but they also don’t want it to do anything that is harmful to its workers or the public. Unfortunately, Sony’s corporate culture often leads it to do things that are harmful to workers and the public. For instance, it has been known to destroy jobs and damage the environment.
Sony is a huge corporation with many different divisions, each of which has its own unique characteristics. Because of that, the value of the company as a whole is not very high. Because of its low profit margins, Sony also has high costs. Together, those two facts make it a poor investment.
What about the good things about Sony? That’s easy: audio equipment, smartphones, and televisions. Those are all profitable businesses, so they help Sony make money. That said, those things are not worth as much as the company itself.
Investors who want to put their money into electronics should look elsewhere. Sony is not worth the money.