Question

what is your evaluation of sirius xm's finanancial performance from 2010 to 2013?

Answer 1

Sirius XM partakes in a broad differentiation strategy because their product is much different andmore varied than that of their competitors. They have many more features than local radio, they have many types of music, concerts, band interviews, and radio personalities, different from a music application. They also have a focused differentiation strategy by offering different packages of channels at different prices for different customers.

the operating profit margin has been on a steady increase since 2010. Starting at 16.5%, it has risen to 27.5% as of 2013.However, according to the NASDAQ report on September 5, 2017 Sirius XM has been on a steady decline with a low 5.59 (Sirius XM Stock).

Sirius XM does not have a lot of working capital, but since 2010, they have increased the amount of cash available for day-to-day operations.

In 2012, Sirius XM had the strongest balance sheet and were considered worthy of credit.

In 2013, they are just 2.98% above the line that says that are excessive reliance on long-term borrowing, they are not as worthy of credit, and they have a weak balance sheet.

Sirius XM is not doing so well in the financial world. In Quarter 4 of 2013, they reported loses in subscribers after raising their price.

Sirius XM’s decline in subscribers is alarming. In the exhibit, every quarter had positive additions in the hundreds of thousands except in Quarter 4 of 2013 where they experienced a decline of 22,756 subscribers. That is a very large number. This was also around the time they increased their prices. This shows that consumers do not see the value in satellite radio. With so many free alternatives, Sirius XM should make a change and quick.