Ethics and Compliance

Ethics and obligingness Fabian Marrero, Kevin Martinez FIN/370 March 9, 2013 Norberto Molina Perez Ethics and Compliance In this penning we will as a team Assess the role of moral philosophy and compliance in your faces pecuniary environment. Describe procedures your judicature has in place to ensure ethical behavior. Explain how pecuniary markets crop in the United States. Identify processes the organization uses to comply with SEC regulations.Evaluate your organizations m geniustary mental process during the past 2 years, using pecuniary proportions. Calculate the ratios for each year Current, Debt, Return on equity discourse the trend for each ratio and what it tells you just about the organizations financial health. The seam code and ethics code at the smart set Lowes stores begins with the board of directors right through to the newest of workers. The requirement to state and follow the code of make out is vital for all who atomic number 18 associated or repr esented by the caller.Compliance with governmental regulations involving ethics is valued by Lowes and held strong. The application of ethics financially, under section B of the code of conducts states employees and members of their flying families should not have any financial interest, direct or indirect, in any organization that is or is underwriteking to be a supplier of merchandise or other property or services to the company (Lowes, 2012).Areas of importance that are also covered in the codes pertaining to financial concerns are payments to governmental officials or other persons, the importance of accurate books and records along with adhering to familiar controls to financial report, protection, and proper use of company assets, public company reporting, and insider concern according to the code of conduct. (Lowes, 2012). The possession of information or knowledge of a transaction or attempted transaction must be communicate to the employees direct supervisor.There is a strong encouragement towards employees to utilize the line of works open door policy or simply by using the website at www. ethicspoint. com (Lowes, 2012). Any situations involving any executive officers such(prenominal) as principal executive officers, financial officers, are concern give iron heel to the general counsel and chief compliance officer. Zero tolerance is given for any retaliation towards any individual that goes against the reporting of any violations of the conduct codes.The ability of the exchange of antecedently issued financial assets from individuals to businesses is the main purpose of the financial markets in the U. S. The actual structure brings borrowers, investors, and intermediaries that throw up together the financial institutions and markets that put some(prenominal) together as a whole. Finance companies, insurance, investment companies, investment banks, are some of the organizations that can compromise the marketplace. The majority of the ti me individuals hoi polloi with commercial banks on a daily basis.The recession of 2008 what greatly out-of-pocket to some non bank intermediaries that made a great number of citizens eliminate their funds from financial marketplaces. Securities play a significant role in the marketplace in addition to these organizations. These markets are made up of essential feather and secondary markets. The primary markets are made up of new securities so firms may utilize them to raise jacket crown to assist with financing. The transference of previously issued securities that investors move deep down each other is secondary markets.Securities can lie in of third estate stock, preferred stock, equity, and debt securities. Finally, financial markets provide the money necessary by companies and individuals and create links between investors and corporations. Because of the stock market crash of 1929 the U. S. Securities and transfer Commission was created. S. E. C. mission is to regain t he confidence in investors in capital market by issuing information that is reliable with honest and take a shit rules. Under this commission any in public traded entity must disclose their financial information by law.This allows the investor the information necessary about selling, buying or even holding a specific security. Under the SEC regulations, publically traded organizations must disclose their financial information. This information provides investors common knowledge about buying, selling or holding a particular security. Last tho not least, the S. E. C. s primary responsibilities are to protect investors, maintain fair, orderly, and high-octane markets, and facilitate capital formation (U. S. Securities and counterchange Commission, 2012). Lowes has been a publicly held company since October 10, 1961. Lowes lists on the New York received switch with shares concern under the symbol LOW. The New York Stock Exchange is the largest financial pains brands in the wor ld. Membership with the NYSE has made one regarded as a valuable property since 1868. In April 2006, the NYSE went both electronic and public that the exchange was a membership-only organization (New York Stock Exchange, 2012). Since Lowes is a publically traded entity, it must file reports with the Securities and Exchange Commission.Some important documents such as, Annual reports, quarterly, current and any other reports necessary for the S. E. C. to properly try the business and its use for investors. Financial reports must have accuracy and be in full compliance with the regulations of the SEC. Finance statements together with the independent registered write up firm by the name of Deloitte and Touche LLP show that this practice acknowledges adequate congenital control over financial reporting as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934 (Lowes 2012).This basically subject matter that this firm is agreeing to give their full assurance to the company that their finance reporting will be reliable and will present accurate financial statements for publishing. Reports to the SEC are as follows Balance sheets, unite statements, statements of cash flows, notes to consolidated financial statements, statements of earnings. Serious violations from organizations of misleading information, fraudulent accounting practices, and even insider trading can cause SEC to use civil enforcement against a business for security law violation.EDGAR (Electronic Data Gathering, Analysis, and Retrieval system) is a automated entreaty and validation system that by law is required to file forms. The primary purpose of EDGAR is to increase the efficiency and fairness of the securities market for the benefit of investors, corporations, and the sparing by accelerating the receipt, acceptance, dissemination, and analysis of time-sensitive corporate information filed with the agency according to the (U. S. Securities and Exchange Commission, 2012).Historica l ratios in comparison to a businesss current plosive ratios to determine if a firms financial status is exploitation or in deterioration. balances illustrate a companys performance and current ratios permit a companys liquidity by putting in comparison current assets and current liabilities. Measurement of debt ratio shows the amount of assets financed by borrowing. The rate of return earned by common shareholders in the firm is known as return on equity, and eventually accounts receivable turnover ratio shows the amount of times that it rolls over throughout the year.Throughout 2010 the economy was demonstrating sings of recuperation, but increasing rates of unemployment were visible in the shell improvement industry. A decline in the value of property, tight denotation for consumers, and disposable income was slow to grow. Illustrations below show the continued growth in the business. Growth and stability and above all, growth in the long affect show that Lowes has expecta tions to maintain a flow of cash throughout the next few years. Financial Performance of Lowes Current Ratio Debt Ratio 2010 2010 3005000 = 2. 37 times 13936000 = 42. 2% 13936000 33005000 2011 2011 33699000 = 2. 16 times 15587000 = 46. 3% 15587000 33699000 Return on Equity 2010 1783000 x 4815 x __1__4818 3300500 1-0. 42 36. 53 x 0. 0015 x 1. 72 = 9. 4% 2011 2010000 x __50208__ x ___1___50208 33699000 1-0. 463 40. 03 x 0. 0015 x 1. 86 = 11. 2% Accounts Receivable Turnover Ratio 2010 2011 32250000___ = 0. 42 days 34790000___ = 0. 49 days 208000/365 days 193000/365 days To finalize the company we have chosen continues to follow its ethical behavior tradition within the home improvement world. The business will keep with updating codes of ethics as the demand for the best environment for customers is what they strive for. SEC assures that Lowes continues to follow old and new regulations always. The financial performance is visible verification of their continued effort for improvement. With the information given we can clearly see that Lowes will keep in the home improvement industry as one of the major players in the years to follow.References Lowes. (2012). Investor Relations. Retrieved from http//phx. corporate-ir. net/phoenix. zhtml? c=95223& vitamin Ap=irol-IRHome Lowes. (2012). Lowes 10-k annual report. Retrieved http//phx. corporate-ir. net/phoenix. zhtml? c=95223&p=irol-reportsannual New York Stock Exchange. (2012). History. Retrieved from http//nyse. nyx. com/history U. S. Securities and Exchange Commission. (2012). What we do. Retrieved from http//www. sec. gov/about/whatwedo. shtml