World Wrestling Entertainment, Inc.

4222 Words17 Pages
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

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