Week 2 Team Assignment Fin 370

Disney’s Standard of Business Conduct highlights the organizations values which are displayed within their business. The president for Disney says that they “have earned the trust of guests, audiences, consumers and shareholders because of our commitment to high standards in everything we do, everywhere we operate” ("Standards of business," 2012). The areas within the Standard of Business conduct are integrity, honesty, trust, respect, playing by the rules, and teamwork. These areas are practiced within the organization toward the public and employees because they want to be as a family friendly organization.

Financial statements paint a picture of financial health of an organization. Important aspects of the financial statement of a health care organization are ratios. Analysis of ratios show how two numbers relate or compare to one another. Ratios are a way for organizations to make comparison. These comparisons not only encompass what is happening presently but can also be used to make comparisons about numbers and ratios over time. Ratios are a way for organizations to compare themselves with competitors and the industry. (Finkler, Kovner, and Jones, 2007). There are four major ratios that financial statements analyze 1) liquidity 2) activity 3) leverage and 4) profitability. The financial statement for Mayo Health System

HH’s long term debt/asset ratio was decreasing from 2006 to 2010 and goes up a little bit to 14.82% as shown on the data. However, the total debt ratio were all time above 50% except year 2010. At the end of 2011, HH’s total debt ratio is 57.54% while the long term debt/asset ratio is 14.82%. This tells us that HH has a larger portion in short term debts/ liabilities than long term debts. And as we can see from the consolidated balance sheet,

Disney used the character of Mickey Mouse and others to create movies that customers enjoyed like “Beauty and the Beast” while Pixar was producing made up animated characters to create films like “Cars” and “Wall-E”. Disney was creating animated movies but struggling to generate the amount of money Pixar was making on producing only one movie a year. Disney wanted to grow in creating more animated movies and decided to buy out Pixar in 2006 for $7.4 million dollars. (Barnes, 2008) According to Disney’s CEO Robert

Days Revenue in Cash: There is a constant decline in this ratio, with an average loss of 40%.

Please be advised that Michael Cruz was enrolled as a 1st grade student at Oilton Elementary School on August 21, 2014. Michael performed exceptionally well throughout the school year academically. On March 9, 2015, the academic team including the building-level teacher, classroom teachers, and parents met to discuss Michael’s academic abilities and the possibility of promoting Michael into the 2nd grade. The academic team considered Michael’s academic abilities and social maturity and determined it was in Michael’s best interest to place him into the 2nd grade. It was agreed upon that the academic team would monitor Michael’s progress and consider academic placement at the conclusion of the 2014-2015 academic year.

• Present 5 years of statements – Ratio – Trend Analysis – See if ratios are improving

The current ratio indicates the ability to pay on maturing obligations and to be able to meet unexpected cash needs. Again in this case Tootsie Roll has a higher probability of being able to pay their obligation and meet their unexpected cash needs. They have a $2.34:1 ratio

1. Please conduct a financial ratio analysis using the data in Exhibit 2. How do the results reflect different strategies pursued by the 4 firms?

Increase in current liabilities Substantial increase in current liabilities weakened the company’s liquidity position. Its current liabilities were US$2,063.94 million at the end of FY2010, a 48.09% increase compared to the previous year. However, its current assets recorded a marginal increase of 25.07% - from US$1,770.02 million at the end of FY2009 to US$2,213.72 million at the end of FY2010. Following this, the company’s current ratio declined from 1.27 at the end of the FY2009 to 1.07 at the end of FY2010. A lower current ratio indicates that the company is in a weak financial position, and it may find it difficult to meet its day-to-day obligations.

By 2006, after eight straight years of showing a loss, the debt from their spending spree on acquisitions was becoming too much to handle, and Six Flags was not bringing in the revenue to meet loan payments and cover expenses. Six Flags was forced to look at reducing assets in the form of selling selected parks to competitors and using the funds received to pay down part of the $2.1 billion debt to $1.6 billion. Under speculation of the asset liquidations, credit-default swaps began showing a positive trend. “You’re seeing an anticipation of an asset sale from Six Flags and that the asset sale will be announced sooner than later,” said Leslie Finerman, a credit analyst with New York-based hedge fund BlueMountain Capital Management, The reaction in the credit-default swap market “is a little overdone,” she said. “The company still has a lot of problems and a lot of wood to chop.” (Harrington & Fineman, 2006, para 12). Finerman’s point proved accurate, as the company continued to lose money.

Disney’s acquisition of Pixar had both benefits and implications for both parties involved. By acquiring Pixar, Disney was given access to Pixar’s proprietary technology, which was an important factor, as well as access to new characters. These characters provided a new source of income for Disney, not just for movies, but also to use in theme parks, merchandise stores, etc., meaning new characters would supply immense revenue streams for Disney in several forms. Disney also gained strengthened market power, as acquiring one of their rivals would give them a competitive advantage and would simultaneously make them more powerful in the market. Additionally, Disney was never very successful with their animated movies, and acquiring Pixar would

The three parks looking at being invested in are Six Flags, Sea World and Cedar Fair. Six Flags has the highest net income (see chart) with Cedar fair with the second highest and sea world in last. This isn’t bad for any of the companies, but when looking at the return on sales, again Six Flags is first, with Cedar Fair in second and Sea world with half of what the other two have. The story is the same for current ratio and stockholder’s equity. However, return on equity the number one and two spot switches with Cedar Fair in first, Six Flags in second and Sea World in last, again. Return on equity followed this new trend with a 7% difference between the number one and two spot. Debt-to-equity ratio showed Cedar fair with the highest, Sea World coming in with the second highest and Six Flags coming in with the lowest. Until I looked at earnings per share, my mind was made up; I was going with Six Flags for its excellent return on sales, current ratio and comparatively better

Blockbuster is a large company with 40% market share (Dow Jones and Company). In 2002, the revenue for Blockbuster was $5,565,900,000. In 2003 it was $5,911,700,000 and in 2004 their revenue was $6,053,200,000. Over the past three years, Blockbuster has shown a net income loss. In 2002 their income loss was $1,627,600,000 and in 2003 it was $983,900,000. In 2004, they had a larger income loss than in 2003, it was $1,248,800,000. Blockbuster currently has 84,300 staff members (Mergent Online).

Today’s business world presents numerous ethical issues. In today’s world above board/moral ethics in organizations do not often materialize intuitively. Organization must strive to provide employees with a clear understanding of the overall company vision. This will aid employees in practicing the code of ethics, policies and procedures in the workplace. Companies must be unwavering in continuously delivering the uppermost ethics of provision in which customers, applicants and employees are entitled to under fair business practices. One major core value is to uphold responsible and fair business practices.