Siriusxm Financial Ratios

815 Words4 Pages
Competitive Asset Analysis An organizations resources can be classified in two categories, tangible or intangible. Regardless of the type of resource, the most valuable resource is human capital. Without the involvement of human capital, tangible or intangible resources cannot be used to the fullest capabilities. The following analysis will highlight those resources most important to SiriusXM. Tangible Resources Physical. SiriusXM currently owns a fleet of nine satellites in orbit. Five of those are connected to the Sirius platform, FM-1, FM-2, FM-3, FM-5, and FM-6, and the remaining four are connected to the XM system, XM-1, XM-3, XM-4, and XM-5. Currently, the XM-5 and FM-6 are used as spares and are the newest of the fleet, put into operation…show more content…
As discussed within the financial analysis section, SiriusXM has developed and extraordinary record of creating free cash flow of $1 billion annually. Cash flow of that magnitude affords management much breathing room and the ability to make company enhancing strategic decisions. Limiting management’s financial maneuverability is a crushing load of debt and shares outstanding. The financial outlook for SiriusXM is moderately pleasing, although management should be hesitant making large future obligations. Technological. In 2013, SiriusXM effectively launched MySXM, presumably their answer to other online/streaming radio services. MySXM is an internet radio service allowing listeners to create personalized stations within a mobile application and is available to all subscribers of SiriusXM. The development of this application is a considerable resource as it allows them to compete directly with Pandora and iHeartmedia mobile…show more content…
Since the merger, SiriusXM has successfully signed agreements with almost all vehicle manufactures. These agreements ensure satellite radio is not only factory-installed, but gives them access to pre-owned sales data enabling the ability for future marketing. In 2013, 70% of the 15.6 million vehicles sold in the U.S. had satellite radio factory installed. This is a huge resource, as a large part of SiriusXMs growth has come as a result of the automobile industry. Capabilities The customer experience of SiriusXM is its core capability, starting with the strategic resources of the company and the employees (human capital) are able to accentuate these resources into key advantages. SiriusXM’s high quality, commercial free, exclusive content, and availability anywhere in the U.S. sets them apart from any of their competitors. Those are the exact reasons why both the subscriber base and revenues have had such growth. Core Competencies and Sustainable Advantages The core competencies highlighted by the VRIN analysis point to three aspects of the company that enable them to achieve sustainable advantages, Physical or satellite technology, Financial or free cash flow, and Human Capital or exclusive

More about Siriusxm Financial Ratios

Open Document