Week 2 Team Assignment Fin 370 Essay

1497 Words Sep 15th, 2011 6 Pages
University of Phoenix
Fin/ 370
Amy Grover
Team D
Mandy Levesque, Justin Bailey, Kristina Papas, Ben Demerdzhyan, Camron Weeden

Introduction Team D is going to assess the role of ethics compliance, and also describe the procedures and ethical behavior of Disney. Team D is also going to identify Disney’s processes they use to comply with the SEC regulations, as well evaluate and discuss financial performance and financial health.

Assess the role of ethics and compliance in your organization’s financial environment.
Ethics and Compliance are extremely important to the entire Disney Organization and are outlined in great detail. The company has made implemented ethic and compliance standards in relation to all employees as
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Disney also understands that in order to ensure the accuracy of their financial reports and to prevent possible SEC violations that they should have an outside company audit their information. Disney’s financial records are audited by Price Waterhouse Coopers LLP.
Ratio Analysis For the analysis, we will be using the following ratios: Current ratio which measures current assets and current liabilities, debt ratio which measures current assets and current debt, the return on equity ratio which shows the net income against the equity, and the day’s receivable which measures revenue against receivables. This information involves 2009 and 2010 records retrieved The Stock Analysis on Net (2011) website.
Current Ratio
The current ratios for Disney (in millions) are 1222511000=1.11 for 2010 and 118898934=1.33 for 2009 which means that the current assets and the current liability ratios have fallen in the last year.
Debt Ratio
The debt ratios for Disney (in millions) are1270412225=1.039 for 2010 and 1292711889=1.08 for 2009. If we use this ratio with the current ratio we find that 2009 ran with a lower liability to lower the debt ratio in 2010.
Return on Equity Ratio
The return on equity ratios for Disney (in millions) are 11666155=.189 for 2010 and 13466118=.22 in 200. This shows that in 2009, when compared with the debt ratio, that there was an increase in debt in order to raise equity which was probably done to increase investments.

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