Xm Radio And Sirius Financial Analysis Essay

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Sirius vs. XM: Ratio Analysis and Statement of Cash Flows Paper From the previous company selection paper, we are now familiar with the selected satellite radio broadcasting companies, Sirius and XM Satellite Radio. Our group will now take a further, in-depth look at the ratio analysis and statement of cash flows to get a better understanding of how the companies are doing financially and with in their market. First, we will be reviewing the cash flows for both companies and identifying how much cash was generated or used by each through everyday operations, and financing and investing activities. We will also address some of the significant events that have affected the overall cash flow for both organizations and describe the changes…show more content…
Total cash flow in investing activities was a positive $36,329, and total cash flow from financing activities was a positive $421,441 (U.S. Securities and Exchange Commission). XM had a positive year in regards to Operating, Financial and Investing activities. Significant events One of the significant events that impacted the cash position for Sirius satellite radio involved financing activities. The company accumulated money from the issuance of long-term debt and the issuance of common stock to help pay for the continuing operations of the organization. Net cash provided by the financing activities, came to $660,227. With operating activities and investing activities costing the company $427,315 combined, it is imperative that the company continue to finance its operations through whatever means possible. Internal events affecting the operating activities included equity granted to third parties and employees, costing Sirius $126,725, and accounts payable and accrued expenses costing $108,997. Total operating activities came to $334,463. Significant internal investment activities included additions to property and equipment and the purchase of restricted investments. The need to continue to update and stay ahead of the competition is significant. Financing – operating expenses – investments, the company had a net increase in cash and cash equivalents of $232,912

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