It has been said, by Moody’s Investors Services, that Nokia Corporation (ADR) (NYSE:NOK)’s second quarter earnings are credited to be negative therefore citing a continued drop in sales and income. Nokia is already on review for downgrade by the ratings agency which states that any downgrade will be limited to one notch.
The agency said that it is more concerned in particular about the 227 million euro loss for Nokia claiming the company is “burning through cash”.
Once the world’s largest maker of mobile phones, the company is now struggling to stay in the competition.
Analyst Ittai Kidron has analysed that with the strengthening competition during 2013, Nokia’s business will consist of long drains on financials. New phones like the Lumia 1020 came at a later time when the giants Apple and Samsung had already begun discounting their own popular devices.
Kidron has also analysed that the Nokia Siemens Networks will develop into a key point for Nokia.
Lack of funds and continued asset sales have forced the company to take further risks for the NSN.
Nokia Corporation shares fell -0.25% in last trading session and is closed at $4.03 while trading in range of $ 3.98 – 4.06 with average volume 31.97 million shares. NOK price to sales ratio in past twelve months was calculated as 0.40 and price to cash ratio as 1.11. NOK return on equity ratio is recorded as -58.90% and its return on assets is -16.00%.