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# Financial Analysis of Disney

Attached are the URLs to Disney's 2006 & 2007 annual reports. Calculate the following ratios for each year:
? Current
? Debt
? Return on Equity
? Days Receivable

Be sure to discuss the trend for each ratio and what it tells about the organization's financial health.

http://amedia.disney.go.com/investorrelations/annual_reports/WDC-AR-2006.pdf

http://amedia.disney.go.com/investorrelations/annual_reports/WDC-AR-2007.pdf

#### Solution Preview

For 2006: (calculation \$ in millions)
Current=Current Assets/Current Liabilities=\$9,562/\$10,210=0.94
Debt=Total Debt/Total Assets= (\$10,210+10,843+2,651+3,131+1,343)/\$59,998=\$28,178/\$59,998=0.47
Return on Equity=Net Profit/Total Equity=\$3,374/\$31,820=0.11
Days Receivable=Ending Receivables/Sales per Day=\$4,707/ (\$34,295/365)=\$4,707/\$93.96=50.1 Days

For 2007: (calculation \$ in millions)
Current=Current Assets/Current Liabilities=\$11,314/\$11,391=0.99
Debt=Total Debt/Total Liabilities= ...

#### Solution Summary

The solution is a financial analysis of Disney including ratios.

\$2.19