Balance Sheets 101: Who Made the Grade

Editor's note: Last earnings season, Scott Rothbort graded several corporate balance sheets. As the current earnings season starts to wind down, Rothbort evaluates a new set of balance sheets, plus takes an updated look at Sirius Satellite Radio's balance sheet.

Sirius Passed -- Barely

Let's start off by taking a second look at Sirius Satellite Radio (SIRI Quote), which recently merged with XM Satellite Radio (XMSR Quote).

Last earnings season, I gave this combination an incomplete grade. The merger of these two companies was a long and arduous process. Missed opportunities -- especially for the new 2009 automobile production cycle -- and uncertainty over the merger have left the combined company in a capital and cash shortage. These companies have burned a huge amount of cash, while still carrying large amounts of debt. As a result, this week, Sirius issued hundreds of millions of dollars of stock and sold hundreds of millions of convertible debt in a private placement offering. ...