Finance for Business
August 30, 2010
Financial Ratios and Ethics of Disney
The Walt Disney Company is known far and wide as a major source of entertainment and the embodiment of family values. Throughout the years, Walt Disney studios have supplied millions with wholesome, child oriented entertainment with iconic characters such as Mickey Mouse, Snow White, and of course Alice in Wonderland. From humble beginnings, the Disney Company grew with leaps and bounds throughout the years to include numerous theme and amusement parks, movies, and production studios and the Disney stores. While the general management of the company has changes over the years; the core values of the company have remained the same, as Disney’s website says; “providing innovative, quality entertainment for all members of the family, across America and around the world.” A closer look at the Walt Disney Company will offer insight to the financial processes that have assisted the company to grow into the world renowned company that is known, loved, and respected.
Ensuring the ethical standards of The Walt Disney Company is part of the company’s business practices. The Walt Disney Company is an equal opportunity employer in regard to race, religion, color, sex, sexual orientation, national origin, age, marital status, covered veteran status, mental or physical disability, pregnancy, or any other basis prohibited by state or federal law (The Walt Disney Company, 2009). The Walt Disney Company contains a Human Resource department that enforces all company policies and monitors all harassment prevention and discrimination policies. These policies are provided in the business standards and ethics training provided to all employees. This training is provided to all domestic and international employees through web-based tutorials. Training helps to ensure that all of the employees have the knowledge and training to act ethically and legally, in compliance with the company's Standards of Business Conduct. Securities and Exchange
The U.S. Securities and Exchange Commission protects investors. The SEC requires companies to provide financial information to the public. This allows potential investors to view the information offering opportunity to make proper decisions before investing into a company. This information also makes investors aware of the happenings so that investment decisions can be made later. Specific laws and regulations are in place that companies must follow with the SEC. Companies must register, file corporate reports, include shareholder solicitations, and disclose any insider trading. The SEC regulates investment advisers, and the organization of a company including investing, mutual funds, and trading. Regulations also require debt collection and reporting financial statements.
Disney has submitted several reports to the SEC including quarterly reports, financial and operations conditions, changing of directors or principle officers, company events, and annual reports. Within the financial reports, an income statement, balance sheet, and cash flow information are provided to review. Other reports include any amendments or security holder changes. As a registrant, Disney documented the borrowing of monies and debt rates for undergoing a three-year credit agreement to acquire a new facility. The company also documented changes in accounting and reporting for non-controlling interests. The new guidance incorporated changes certain reporting of some financial information such as the statement of income and the balance sheet. Every event encountered is reported including a merger agreement with Marvel Entertainment that involved common stocks and shareholder options for investing. Disney has followed the processes to comply with the U.S. Securities and Exchange Commission and maintains records for the public.
Current Ratio (Assets/Liabilities)...