World Wrestling Entertainment, Inc.
Executive Summary
With over twenty years of experience in the sports entertainment business and the mergers of some of the leading companies in the wrestling industry, Vince McMahon organized the World Wrestling Entertainment Inc., in the late 1970s. The organization consist of an integrated media and entertainment company engaged in the development, production and marketing of television and pay-per-view programming, live events and the licensing and sale of branded consumer products. There are other wrestling organizations in Japan and Mexico, the World Wrestling Entertainment and National Wrestling Alliance are the only major one left in North America. (Edger WWE 10K, 2004). This paper will
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To evaluate the ratio, if the ratio is lower than the industry average, this suggests the firm may have liquidity problems. If the ratio is notability higher, this may suggest the firm is not using its funds in an efficient manner. A firm that has a current ratio that is close to the industry average is performing well. (Ameritrade, 2004).
Current ratio is calculated by dividing current assets by current liabilities. The current ratios for World Wrestling Entertainment, Inc. for 2002, and 2003 are, 4.3:1, and 4.2:1and 4.1:1. By using the general rule, the organization current ratios for all three years are well above 2.0. This means the organization has adequate liquidity. The 2002 and 2003 ratios are higher than 2004 ratio.
Cost of Capital
Balance Sheet Analysis The balance sheet is one of four types of financial statements that are analyzed to determine the well being of the firm. The balance sheet is also known as the Statement of Financial Position. The balance sheet provides the detailed information needed to determine the financial condition of the firm on a specific date, which is usually December 31. The balance sheet depicts what the firm owns (assets), owes (liabilities), and how much capital (shareholders’ equity) it has. “The name, balance sheet, is derived from the fact that these accounts must always be in balance. Assets
A balance sheet is a statement of the assets and liabilities of a business going into depth of what the balance of income period.
A balance sheet gives an overall picture of a company's financial situation by showing the total assets of a business, including liabilities plus equity. Current assets can include cash, accounts receivable, inventory and prepayments for insurance. The balance sheet is used by investors to get an idea of what the shareholders have invested, including
* A balance sheet is snapshot of the financials for that organization (with assets on the left and liabilities on the right side) for that particular date that was requested
The current ratio shows the short-term debt-paying ability of the company also known as liquidity ratio. Components of the current ratio are current assets and current liabilities. To find the current ratio, divide current assets by current liabilities. For example if a current ratio was 2:1, then that company would be able to pay off its short term debt easily. But you should also look at the types of debt the company has because some assets might be larger. For the current ratio a rule of thumb is the ratio should be around 2:1. The company wants to at least make sure that the value of the current assets covers at least the amount of the short-term obligations. In 2013 the current ratio is 1.75 and in 2014 the current ratio is 1.8. This is showing a favorable
Current Ratio: Current ratio helps the company assess its ability to use assets like cash, accounts receivable, inventory and the ability to pay short term liabilities as the accounts payable and wages. The ratio can be found by dividing the current assets /the current liabilities. Year 12 shows a ratio of 1.78 with year 11 a ratio of 1.86. Year 12 is down from year 11. The industry is 2.1 so year 12 has declined from the previous year and is near the lower quartile which means there is a weakness. There is a showing of declining trending.
The balance sheet is considered a point in time statement because it elaborates on the current position of the organization. Based on the balance sheet, the organization is able to make an educated decision to know if it’s the best time to pursue additional business. The balance sheet is usually reviewed by a creditor when searching for new opportunities. Basically, the creditor determines the company’s position by subtracting the company 's liabilities from the assets. Liabilities are the debts and obligations a facility, regardless of the magnitude of the business. Once the liabilities have been subtracted from the assets, a stakeholder 's equity is determined.
Current ratio shows how well the company can pay off its short-term liability obligations. Short-term liabilities are debt due within the next year. Companies that have larger amounts of current assets are better able to pay off their current liabilities. The higher the ratio, the better able the company is to pay current obligations. A low ratio indicates the company is weighted down with current debt and the cash flow will suffer. The equation for current ratio
Current ratio is type of liquidity ratio. It is a financial tool used to measure a company’s ability to pay off its short-term debts with its short-term assets. A company’s current ratio is expressed by dividing its current assets by its current liabilities. A higher current ratio means the company is more capable of paying off its debts. If the current ratio is under one, this suggests the company is unable to pay off its obligations if they were due at that point (Investopedia, 2013). Companies that have trouble collecting money for its receivables or have long inventory turnovers can run into liquidity problems because they are unable to lessen their obligations.
The Balance Sheet is another type of financial statement used by a company to see a snapshot of the company's financial position at a particular point in time. It lists the value of the company's assets followed by its liabilities. A balance sheet can be summed up by a simple equation:
Current assets of $10,454 divided by current liabilities $9,406 equals to 1.11 (rounded); so Current Ratio would
Balance Sheet reports the financial position (economic resources and sources of financing) of an accounting entity at a point in time.
Growing up I never had an interest in wrestling. I had always thought it was boring and rough. I was taught it was too disgusting to watch and to never like fighting of any kind. I was raised by a single mother, so we were raised to dislike violence and gore. I honestly did not know anything about wrestling. On the same note, I had no idea who
For Baby Boomers and Generation X wrestling fans that grew up in the southeast, the three letters, NWA, evoke nostalgic memories of the long past days of “the territories” and “Kayfabe.” Each “territory” had its own promoter, but was under the banner of the National Wrestling Alliance, NWA. Back then, “Kayfabe” was the implicit rule that the wrestlers always stay in character during the show and in public appearances to maintain the illusion professional wrestling was a real sport and everything that happened in the ring was real. (E-Wrestilg Wikia, n.d.) While today, there is no pretense, everyone knows that outcomes are scripted, and it is even called Sports Entertainment. Still, though, many fans yearned for the old days. So, in 2005
To calculate the current ratio, which is one of the most popular liquidity ratios you divide all of firms current assets by all of its current liabilities. McDonalds has $1,819.3 (*everything is in millions for McDonalds) of current assets and $2,248.3 in current liabilities making the firms current ratio .81. In 2005 Wendys has current assets of $266,353 and current liabilities of $296,687 making their current ratio .90. Current ratios are used to represent good liquidity and financial health. Since current ratios vary from industry to industry, the industry average determines if a firms current ratio is up to par, strength or a weakness. In any event if the current ratio is less than the industry average than an analyst or individual interested in investing might wonder why the firm isn't
CURRENT RATIO show a company’s ability to pay its current obligations that is company’s liquidity. The current ratio position is lower for Honda at 0.33 than for Toyota at 1.22 in 2010. Honda has a large portion of receivables in assets both in trade, notes receivables and finance receivables. It has a huge portion of cash as well. This indicates the company has no problem in terms of generating a positive influx of assets. But in terms of liabilities it has a large portion of short term debt which makes almost 1/3rd of total Current liabilities. Also there is a significant portion of Long Term debt. The higher level of liabilities in the denominator reduces the overall ratio.