Walt Disney's Financial Analysis and Financial Ratios

Quality Business Consultant's financial analysis expert, Paul Borosky, MBA., doctoral candidate, and published author, has created proprietary financial models to help analyze Disney's financial performance using Disney's summarized income statements and balance sheets for the last five years, 2016 to 2020, found in their Annual Reports and Disney's 10ks. 

Further, our financial model also calculates over 20 popular financial ratios, such as Disney's current ratio, return on equity, and debt ratio. This information is the basis of our financial report, "Walt Disney Financial Report", where we offer insights into understanding Disney's financial standing through insightful financial analysis.

Disney's Financial Report and Annual Report

Disney 2020 Financial Report and Analysis by Paul Borosky, MBA.

Disney's Financial Report by Paul Borosky, MBA.

Hey All,

Thanks for considering my Walt Disney's Financial Report. In this report, you will be able to find preliminary information about Apple's current financial performance as well as some historical track records and trends. Also, in this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:

  • Summarized income statement for the last 5 years.
  • Summarized balance sheet for the last 5 years.
  • Summary analysis by myself of important income statement, balance sheet, and financial ratio trends and other happenings.
  • Five year’s worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line by line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is where I use plain English to explain concepts.

Sincerely,

Paul, MBA.

Learn More

Sample Report

Sample report 2
Financial Report Sample 1

Walt Disney's Income Statement Analysis Sample

In this section of the financial report, I walk you through a broad definition as to what an income statement is and why it is important.  From this, I then discuss and define important income statement line items, such as revenues, gross profits, etc. in detail.  Finally, I offer a summary analysis of the company's important income statement line item trends.  For example,...

Disney's Cost of Goods Sold.

Disney's cost of goods sold ended in 2016 at $29.9 billion.  In the next four years, the organization's cost of goods would continuously increase, ending 2020 at $43.8 billion.  As compared to revenues, Disney's cost of goods sold was 53.9% in 2016.  In the next four years, the company's cost of goods sold as compared to revenues would steadily increase, ending 2020 at 67.1%.  On average, the organization's cost of goods sold has increased by 10.5% annually in the last five years.

Disney Income Statement Summary 2020

Column1 2020 2019 2018 2017 2016
Revenues

                   65,388

                   69,570                    59,434                    55,137

                     55,632

COGS

                   43,880

                   42,018                    32,726                    30,306

                     29,993

Gross Profit

                   21,508

                   27,552                    26,708                    24,831

                     25,639

 
SG&A

                   12,369

                   11,541                      8,860                      8,176

                       8,754

Depreciation

                     5,345

                     4,160                      3,011                      2,782

                       2,527

R & D                            -                            -                            -                            -                             -
Other                            -                            -                            -                            -                             -
Operating Expenses

                   17,714

                   15,701                    11,871                    10,958

                     11,281

EBIT

                     3,234

                   14,459                    14,837                    13,873

                     14,358

Other Income                            -

                           -

                        601                           78

                            -

Interest Expense

                     1,491

                        978                         574                         385

                          260

EBT

                     1,743

                   13,944                    14,729                    13,788

                     14,868

Taxes

                        699

                     3,026                      1,663                      4,422

                       5,078

Net Income

                  (2,474)

                  11,584                   13,066                     9,366

                     9,790

Tax Rate

40.1%

21.7% 11.3% 32.1%

34.2%

Disney's Balance Sheet Analysis Sample

In this section of the financial report, I walk you through a broad definition as to what a balance sheet is and why it is important.  From this, I then discuss and define important balance sheet line items, such as cash, inventory, etc. in detail.  Finally, I offer a summary analysis of the company's important balance sheet line item trends.  For example,...

Disney's Property, Plant, and Equipment

The Walt Disney Company's property, plant, and equipment ended 2016 at $27.3 billion.  In the next four years, the organization's property, plant, and equipment would grow substantially, ending 2020 at $32 billion.

The substantial growth in property, plant, and equipment indicates that executives for Disney anticipate sustained revenue growth for the long-term.  From an investor's perspective, this should give the stakeholders a moderate feeling of confidence in knowing that executives have faith in the organization's ability to grow.  However, the substantial growth in fixed assets like property, plant, and equipment does leave the organization vulnerable to unanticipated revenue declines.  A better strategy may be for the organization to rein in their fixed asset growth until optimization is achieved with their current fixed assets.

Disney Summary Balance Sheet 2020

Column1 2020 2019 2018 2017 2016
Cash                      17,914                    5,418                    4,150                    4,017                    4,610
Short Term Investment                         -                         -                         -                         -
Account Receivable                      12,708                  15,418                    9,334                    8,633                    9,065
Inventory                        1,583                    1,649                    1,392                    1,373                    1,390
Other                              -                         -                         -                         -                         -
Current Assets                    35,251                28,124                16,825                15,889                16,966
Net PPE                      32,078                  31,603                  29,540                  28,406                  27,349
Goodwill                      77,689                  80,293                  31,269                  31,426                  27,810
Other                              -                         -                         -                         -                         -
Total Assets                  201,549              193,984                98,598                95,789                92,033
Accounts Payable                      16,801                  17,942                    9,479                    8,855                    9,130
Accrued Expense                              -                         -                         -                         -                         -
Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable                              -                         -                         -                         -                         -
LT Debt - Current                        5,711                    8,857                    3,790                    6,172                    3,687
Other                              -                         -                         -                         -                         -
Total Current Liabilities                      26,628                  31,521                  17,860                  19,595                  16,842
LT Debt                      52,917                  31,521                  17,084                  19,119                  16,483
Other                         -                         -                         -                         -
Total Liabilities                  113,286              100,095                45,766                50,785                44,710
Common Stock                      54,497                  53,907                  36,779                  36,248                  35,859
Treasury                           907                       907                  67,588                  64,011                  54,703
Retained Earnings                      38,315                  42,494                  82,679                  72,606                  66,088
Other                         -                         -                         -                         -
Total Equity                    88,263                93,889                52,832                45,004                47,323
Total Equity & Liability                  201,549              193,984                98,598                95,789                92,033

Disney's Financial Ratios Sample

In this section of the financial report, I walk you through definitions of various popular financial ratios, how to calculate the ratios, formulas used, etc. Also, for some popular financial ratios, I provide brief explanations of what the ratios mean as it is related to the company.

Disney's Quick Ratio

Disney's quick ratio ended 2016 at .92.  In the next three years, the organization would reduce its quick ratio to .84 in 2019.  However, in 2020, the organization substantially increased its quick ratio ending the year at 1.2. 

Disney's Fixed Asset Turnover Ratio

In 2016, Disney's fixed asset turnover was 2.03.  In the next year, the organization's fixed asset turnover would fall to 1.9.  Fortunately, in the next three years, the organization's fixed asset turnover would rebound, ending 2020 at 2.04. 

Disney's Return on Equity

Disney's return on equity ended 2016 at 20.6%.  In the next two years, the organization's return on equity would increase substantially, ending 2018 at 24.3%.  However, the organization's return on equity would continue to fall over the last two years ending 2020 at -2.8%.

Disney Liquidity Ratios

Ratios

2020

2019 2018 2017

2016

Current Ratio

                          1.32

                   0.89

Cash Ratio

                          0.67

                   0.17

Quick Ratio

                          1.26

                   0.84

Net Working Capital

                      15,404

                 4,543

 

Disney Asset Utilization
Ratios

2020

2019 2018 2017

2016

Total Asset Turnover

                          0.32

                   0.36

Fixed Asset Turnover

                          2.04

                   2.20

Days Sales Outstanding

                        70.94

                 80.89

Inventory Turnover

                        41.31

                 42.19

Accounts Receivable Turnover

                          5.15

                   4.51

Working Capital Turnover

                          4.24

                 15.31

AP Turnover

                          3.89

                   3.88

Average Days Inventory

                        13.17

                 14.32

Average Days Payable

                      139.75

               155.86

 

Disney Profitability Ratios

Ratios

2020

2019 2018 2017

2016

Return on Assets

-1.23%

5.97%

Return on Equity

-2.80%

12.34%

Net Profit Margin

-3.78%

16.65%

Gross Profit Margin

32.89%

39.60%

Operating Profit Margin

4.95%

20.78%

Basic Earning Power

1.60%

7.45%

ROCE

1.85%

8.90%

Capital Employed

                    174,921

             162,463

ROIC

4.08%

31.32%

 

Disney Long-term Debt

Ratios

2020

2019 2018 2017

2016

Debt Ratio

26.26%

16.25%

Debt/Equity

59.95%

33.57%

Times Interest Earned

                          2.17

                 14.78