IT 210 2-2 Journal Summary Notes
I may simply be a child at heart, but I was pulled to Disney (Walt) Co. while picking a company
to work for. Also, Disney puts so much happiness into everyone's life. According to The Walt
Disney Corporation, it is a "leading, globally diversified family entertainment and media
organization that comprises Parks, Experiences, and Products; Media & Entertainment
Distribution" (Walt Disney Co., 2021) Disney is able to bring to life its characters from the film
to real life at various theme parks and resorts across the world, including California, Florida,
Tokyo, Paris, Hong Kong, and China. This creates an unforgettable experience that never gets
old. The individuals who like this firm the most may experience the wonder of its strong brands
and franchises, including Disney, Pixar, Marvel, Star Wars, ESPN, Twentieth-century Studios,
and National Geographic. Disney also engages in media network operations, including cable and
broadcast television networks, and it has accumulated live-action and animated motion movies,
direct-to-video material, musical records, and live stage productions.
Disney provides customers with a wide range of services, including entertainment and interactive
activities, as well as cutting-edge tangible goods in more than 100 categories, including toys,
fashion, jewelry, technology, and consumables. More than 300 Disney stores may be found
across North America, Europe, Asia, as well as online at ShopDisney.com. Disney also produces
interactive video games that use well-known Disney, Pixar, Marvel, and Star Wars characters.
Computers, mobile devices, and console platforms may all access them. Being the biggest
publisher of children's books and periodicals in the world is another fantastic service that Disney
offers its customers. Disney has the capacity to produce and publish content both internally and
through a licensing system in 68 nations and more than 45 languages. Via Disney Learning,
Disney has committed to supporting kids' good educational growth.
A corporate accounting health is outlined in its financial statements, which also include
information on its performance, operations, and cash flow. It is also crucial to have financial
statements since they provide details about a company's income, costs, profitability, and debt.
These may be tools to help you make wise decisions, inspire teams, and keep an overall
perspective. They can also be used to measure performance, budgets, and other data. It is
possible to assess a company's financial health in a number of ways, including by examining its
balance sheet, income statement, cash flow statement, and actual financial research. The balance
sheet is a statement that depicts the financial situation of a corporation at a specific point in time.
It offers a quick picture of the company's assets, obligations, and owner equity. Liabilities are
funds obtained from outside sources that must ultimately be repaid, whereas assets are utilized
by the firm to keep operations running. Owner's equity refers to the funds an owner puts in a
business, whether it is private or not. Both assets and liabilities are shown as either current or
non-current on the balance sheet, indicating whether they are short- or long-term, according to
Harvard Business School. Long-term assets are those that are not anticipated to be turned into
cash within a year, whereas short-term assets are those that are.
As opposed to long-term obligations, which are not due within a year, short-term liabilities are
those that are. 2020 (Stobierski) The following factors are examined when examining a balance
sheet to assess financial health: the ratio of the company's debt to equity, How liquid the
company's short-term finances are (less than one year), how much of the assets are derived from
financial transactions and how much are actual assets, How long it takes for a firm to sell any
inventory it has on hand, as well as how long it takes for customers and suppliers to pay back any
debts. 2020 (Stobierski) The financial condition and performance of the firm are shown in an
income statement, which is created by taking into account sales, costs, and profits made. When a
trial balance of transactions is obtained from any two points in time, this may be generated. The
income statement typically starts with the revenue collected for the period less the cost of
production for the items sold to establish the gross profit, according to Harvard Business School.
The earnings before interest and tax are then calculated by deducting all other costs, such as
employee wages, rent, power, and non-cash expenses like depreciation (EBIT).
In order to calculate the net profit that is left over for the owners, interest and tax payments are
subtracted. Dividends may be paid out or the funds may be put back into the business. 2020
(Stobierski) Now, by examining the following, an income statement eventually aids a company's
financial health. how much revenue has increased during particular accounting periods, the
whole product profit margin, what proportion of sales generates a net profit after all costs, If the
company can pay its debt's interest payments, and how much it gives back to shareholders
compared to how much it invests. 2020 (Stobierski) Actual financial evaluation is essential for
establishing the overall financial health of a firm since it aids in making sense of the numbers in
the financial statement. Ratios are recognized to fall into a wide range of areas, including
valuation, profitability, liquidity, solvency, and efficiency. Financial ratios should be compared
over time and to your rivals while being examined. This will demonstrate if your business is
growing or shrinking as well as how it is faring in comparison to direct and indirect rivals in the
same sector.
As no one ratio or statement is sufficient, it is best to employ a combination of ratio analyses
across all statements to assess a company's overall financial health. Finally, a cash flow statement
provides a thorough analysis of how a corporation manages and expands its cash over an
accounting period, which aids in assessing the financial health of the enterprise. It demonstrates
the source of cash flow, the precise locations of expenditures, and "it reconciles the beginning
and ending cash balance across the time." 2020 (Stobierski) When analyzing a company's
finances, one of the most crucial papers to employ is a cash flow statement, which offers
significant insights into the usage of money. According to Harvard Business School, "The
income statement and balance sheet are based on accrual accounting, which may not accurately
reflect the business's real cash flows. To eliminate the effects of non-cash transactions and
provide managers, owners, and investors a better financial picture, the cash flow statement was
created. 2020 (Stobierski) By examining the following, the cash flow statement assists a firm in
determining its financial health. the company's financial status, cash flow streams for the
business, The amount of free cash flow the business creates, whether it has grown or shrunk, to
invest in more assets or operations. 2020 (Stobierski)
Long-term business success depends greatly on knowing what factors define a company's
financial health, but managing cash flow is crucial. By controlling cash flow, a firm may make
sure that employees are paid on time, that there is money set aside for future growth and
expansion, and that investors are paid back. A company is able to cover daily expenses and avoid
going into debt when it is able to generate adequate revenue. Unfortunate cash flow issues might
cause a business to become insolvent if it is unable to repay any external lenders. Bankruptcy
becomes one of the primary causes of business failure. Enough that, increasing your total cash
flow and being able to successfully eliminate whatever debt you may have might result in more
financial savings for the firm because it lowers your interest payments. My search for recent
financial stories led me to a yahoo economics story titled "6 Possible Belly up Businesses to
Watch Owing to Pandemic Woes." This supports what I stated about managing cash since
businesses aren't generating as much money as they once were as a result of the epidemic. The
epidemic has slowed the economy and the demand for goods, which is causing the corporations
to skip outstanding debts.
