Abstract
Nintendo manages its financial features efficiently. This is not surprising from a big international company which has big experience. The video game industry is in a growth phase and Nintendo, in its war against Microsoft and Sony, has to be very vigilant to keep in its hands its recent place as the leader. The company doesn't seem to be debt oriented which is a risk free strategy but, some analysts think that a company has to borrow to grow. This is not a Japanese way of doing business. In any case, if it is necessary, Nintendo could borrow because of its Return on Assets and its Debt ratio. Besides, the Return on Equity distribution management is so well that Nintendo has lots of resources. These are the goods points to continue with the needed growth. The experience in creation and commercialization of products and concepts that Nintendo got last year, permits a better effectiveness to produce revenues from assets, and many products saw daylight and are in much demand. But the launch of products that require expensive components are the reason for the increase in the cost of goods sold. However, the increase of inventories shows a good management of costs. These results permit to note down the good health of the company and also that the company has a certain value.
