The common-size balance sheet for DISH Network Corporation revealed that cash and cash equivalents comprise over half of the total current asset. The decrease in cash and cash equivalents had been necessary to be used in aggressive marketing as the pay-TV industry had reached to the matured stage and the competition had intensified. In 2015, DISH offered a free upgraded programming packages, which led to a large percentage of “Subscriber-related expenses”. In 2016, it launched the new product, Flex Pack skinny bundle, which had more personalized function with lower price. However, the pay-TV subscribers base still had been declining over years and led to the lower sales. This showed a significant threat for the firm, that digital media competition could have a strong effect on liquidity. On the other side, the current liabilities were relatively stable and had not much of the effect on liquidity of the firm. …show more content…
In contract to the operation, DISH had increasing loss in cash from the investing activities over three years. The loss was due to the increasing capital expenditures for new and existing customer equipment. Because of the aggressive competition among the industry, the capital expenditures were hard to eliminate. From 2016 to 2014, capital expenditures for new and existing DISH branded pay-TV customer equipment totaled $446 million, $573 million and $755 million, respectively. This appeared to be a major problem with the firm’s short-term