Activision
The company's total assets at the end of the last reporting period was $14,200,000. This is important for a couple of reasons. The first is that the total assets represent the total value of the company. This is what the company is comprised of. The second reason this is important is because this figure allows people to track how the company is growing. We can see, for example, that Activision Blizzard is larger at the end of 2012 than it was at the end of 2011. If you want to invest in a growing company, this is good information to know. Furthermore, the total assets figure is used in some financial ratios, contributing to the knowledge of the company's financial position. For example, it is used in total asset turnover, and as the denominator in the debt ratio as well.
It is also important to know the total assets when evaluating the value of the firm's equity. While the equity value is important on its own, it is more important to know it in relation to the total assets, because this will inform the investor as to how much of the firm's worth is available to the investors, and how much of the firm's worth is available to shareholders, and how much is in debt. So there is definitely some importance to charting the level of the total assets of the firm on the balance sheet.
The total assets the previous year $13,277,000. Thus, there was growth of 6.9% in 2012 of the total assets compared with the level in 2011.
The cash and cash equivalents was $3,959,000 in 2012, compared with $3,165,000 the year previous. This represents an increase in the company's cash holdings of 25%. There are many different reasons for a cash increase, including one that is larger than the increase in total assets. This is likely just an asset allocation issue. However, it is good for the company to increase its cash because this increases short-term financial security. Activision Blizzard has done this, improving its cash position and financial security, and this is reflected in the strong improvement in the cash and cash equivalents.
