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'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.
Sample Report
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 |
|
||