Disney Financial Statements and Financial Ratios Analysis

Walt Disney Financial Statements and Financial Ratios Analysis

A Beginner's Guide to Walt Disney Financial Analysis - 2021

$5.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • NOT Included-Identify and discuss financial trends for the company..
  • NOT Included-Expert financial analysis done by Paul Borosky, MBA.
  • NOT Included- Analyst "Letter Grades" for the company's ratios.
  • NOT Included-Free Annual Reports Download for (5 Years)

Walt Disney Financial Report by Paul Borosky, MBA. - 2020

$9.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Summarized Income Statements and Balance Sheets for the last 5 years..
  • Included Popular financial ratios for the last 5 years included... with calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with financial ratios analysis.
  • Included Identify and discuss financial trends for the company.
  • Included Expert financial analysis done by Paul Borosky MBA.
  • Included Analyst "Letter Grades" for the company's ratios (Starting in 2021).
  • Included Free Annual Reports Download for the company (5 years).

Hey All,

Thanks for visiting my Walt Disney Financial Report page. On this page, you will be able to find preliminary information about Disney's current financial performance as well as some historical track records and trends. 

For a more detailed examination of Disney's financial performance, I offer two reports, which are "A Beginner's Guide to Disney Financial Analysis" and "Disney Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, and include:

  • Summarized income statements for the last 5 years.
  • Summarized balance sheets for the last 5 years.
  • Five years’ 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 are 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.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Apple Inc. Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
  • Overall financial analysis summary for the company.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA.

PDF/Downloadable Version

Disney Financial Report 2020 by Paul Borosky, MBA.
  • Included - Free Bonus Downloads: Annual Statements for the Last Five Years (10k reports)!
  • Included - Expert financial analysis done by Paul Borosky MBA.

Disney's 2021 Beginner's Guide

Table of Contents

  • Disclaimer 3
  • Forward 4
  • Income Statement 6
  • Disney’s Summarized Income Statements 6
  • Revenues 7
  • Cost of Goods Sold (COGS) 8
  • Selling, General, and Administrative Expenses (SG&A 8
  • Research and Development (R&D) 9
  • Operating Expenses 10
  • Earnings Before Interest and Taxes (EBIT 10
  • Interest Expense 11
  • Earnings Before Taxes (EBT) 12
  • Taxes 12
  • Net income 12
  • Tax Rate 13
  • Balance Sheet 15
  • Disney’s Summarized Balance Sheets 15
  • Cash 16
  • Short-Term Investments 17
  • Accounts Receivables 17
  • Inventory 18
  • Current Assets 19
  • Property, Plant, and Equipment (PP&E) 20
  • Total Assets 20
  • Accounts Payable 21
  • Accrued Expenses 22
  • Short-Term Debt 23
  • Total Current Liabilities 24
  • Long Term Debt (LT Debt) 25
  • Total Liabilities 26
  • Common Stock and Additional Paid-in Capital 27
  • Treasury 27
  • Retained Earnings 28
  • Total Equity 29
  • Financial Ratios 30
  • Disney’s Liquidity Ratios 31
  • Current Ratio 31
  • Quick Ratio 32
  • Cash Ratio 33
  • Disney’s Asset Ratios 35
  • Total Asset Turnover 36
  • Fixed Asset Turnover 37
  • Days Sales Outstanding 37
  • Inventory Turnover 38
  • Accounts Receivable Turnover 39
  • Accounts Payable Turnover 40
  • Other Asset Ratio Calculations 41
  • Working Capital Turnover 41
  • Average Days in Inventory 41
  • Average Days Payable 41
  • Disney’s Profitability Ratios 43
  • Return on Assets (ROA) 43
  • Return on Equity (ROE) 44
  • Net Profit Margin 45
  • Gross Profit Margin 46
  • Operating Profit Margin 46
  • Disney’s Debt Ratios 48
  • Debt Ratio 48
  • Debt to Equity Ratio 49
  • Times Interest Earned 50

Disney's 2020 Financial Report

Table of Contents

  • Disclaimer 3
  • Acknowledgments 4
  • Forward 5
  • About the Author 7
  • Company Summary 8
  • Financial Statement Introduction 11
  • Income Statement 12
  • Disney’s Income Statement – Summary Analysis 13
  • Income Statement Discussion 15
  • Balance Sheet 24
  • Balance Sheet – Summary Analysis 25
  • Balance Sheet Discussion 28
  • Financial Ratios 43
  • Liquidity Ratios 44
  • Liquidity Ratios - Summary Analysis 44
  • Liquidity Ratios Discussion 45
  • Current Ratio 45
  • Quick Ratio 46
  • Cash Ratio 47
  • Other Liquidity Ratios 48
  • Net Operating Working Capital 48
  • Asset Ratios 49
  • Asset Utilization Ratios - Summary Analysis 50
  • Asset Utilization Ratios Discussion 52
  • Total Asset Turnover 52
  • Fixed Asset Turnover 52
  • Days Sales Outstanding 53
  • Inventory Turnover 54
  • Accounts Receivable Turnover 55
  • Accounts Payable Turnover 56
  • Other Asset Ratio Calculations 56
  • Working Capital Turnover 56
  • Average Days in Inventory 57
  • Average Days Payable 57
  • Profitability Ratios 58
  • Profitability Ratios - Summary Analysis 59
  • Profitability Ratios Discussion 60
  • Return on Assets (ROA) 60
  • Return on Equity (ROE) 61
  • Profit Margin 62
  • Gross Profit Margin 62
  • Operating Profit Margin 63
  • Basic Earnings Power 64
  • ROCE 64
  • Capital Employed 64
  • Debt Ratios 65
  • Disney’s Debt Ratios - Summary Analysis 65
  • Debt Ratios Discussion 66
  • Long-Term Debt Ratio 66
  • Debt to Equity Ratio 67
  • Times Interest Earned 67
  • WACC 69
  • Book Value of WACC 69
  • Free Cash Flow (FCF) 71
  • Free Cash Flows – 2015 - 2019 71
  • Free Cash Flows – 5 Year Projections 72
  • Income Statement – Projections for 5 years 73
  • Income Statement – 5 Year Projections 73
  • Balance Sheet – Projections for 5 years 74
  • Balance Sheet – 5 Year Projections 74
  • Company Valuation and Intrinsic Stock Price 76
  • Appendix 1: Summarized Income Statement 77
  • Appendix 2: Income Statement – Percent of Sales    78
  • Appendix 3: Income Statement – Year over Year Growth   79
  • Appendix 4: Summarized Balance Sheet      80
  • Appendix 5: Balance Sheet as Percent of Total Assets         82
  • Appendix 6: Summarized Financial Ratios   83

 

Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Brief Summary: Walt Disney INC. (DIS)

The Walt Disney Company's headquarters is located in Burbank, California.  The company competes in the communication services sector—specifically, the entertainment industry.  At present, the organization employs approximately 200,000 individuals.  Walt Disney generates revenues from multiple sources.  Important revenue-generating sources for the company would include theme park admissions, movie sales, theme products sales, and monthly subscription fees from digital streaming services.  Based on my research, Disney's main revenue generator would be there their media business segment.

Walt Disney Financial Report Sources

“Disney 2020 Company Report: Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA., and owner of Quality Business Plan.  In this report, I used Disney's 2018 10k, 2017 10k annual report, 2016 10k annual report, 2020 10k annual report, and 2019 10k annual report as the basis for information gathering. 

Section 1: Disney Income Statement Analyzed

In this section, I walk through a broad definition of what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail.  After each line item is defined and discussed, I finally offer a summary analysis of Disney's important income statement line item trends from 2016 to 2020, in most cases.

Disney Inc. Revenue Growth.

The Walt Disney Company ended 2016 with revenues of approximately $55.6 billion.  In the next year, the company's revenues would fall slightly to $55.1 billion in 2017.  Fortunately, in the next two years, the organization's revenues would climb substantially, ending 2019 at $69.5 billion.  However, in 2020, the company's revenues would fall to $65.3 billion.  On average, the organization's average growth rate for the last five years was approximately 4.5% for revenues.

The company's substantial revenue growth from 2016 to 2020 shows that the firm is able to continuously generate revenues based on its product and service offerings.  However, due to the fluctuation in revenue growth and contraction, it seems like the company's revenue streams are a bit insecure.  Again, Covid 19 has wreaked havoc on the firm's Park revenue-generating opportunities.  This shows that the company may need to diversify its revenue channels more to ensure continuous revenue growth for investors.

Disney's 2021 Summary Income Statement

Column1

2021

2020 2019 2018

2017

Revenues

                   67,418

                   65,388                    69,607                    59,434

                     55,137

COGS

                   45,131

                   43,880                    42,018                    32,726

                     30,306

Gross Profit

                   22,287

                   21,508                    27,552                    26,708

                     24,831

 
SG&A

                   13,517

                   12,369                    11,549                      8,860

                       8,176

Depreciation

                     5,111

                     5,345                      4,167                      3,011

                       2,782

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

                   18,628

                   17,714                    15,716                    11,871

                     10,958

EBIT

                     3,967

                       (252)                    14,459                    14,837

                     13,873

Other Income                            -                            -

                        601

                            78

Interest Expense

                     1,406

                     1,491                         978                         574

                          385

EBT

                     2,561

                    (1,743)                    13,923                    14,729

                     13,788

Taxes

                          25

                        699                      3,026                      1,663

                       4,422

Net Income

                    2,507

                  (2,474)                   11,584                   13,066

                     9,366

 

Section 2: Disney Balance Sheet Analyzed

For Disney's balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define their balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2020.  Next, I then offer a summary analysis of their important balance sheet line items.

Cash

In 2016, Disney had a cash position of $4.6 billion.  In the next two years, the organization's cash position would fall to $4.1 billion in 2018.  Fortunately, the organization's cash position would grow substantially, ending 2020 at $17.9 billion.

The substantial cash position in 2020 may be attributed to the organization taking on significant debt due to the need for cash when combating the Covid 19 virus ramifications.  Once the virus impacts subside, investors should expect Disney to reduce their cash position back to a more moderate amount, possibly between four to $5 billion.  By keeping a low cash position, it does seem like the organization does a pretty good job of managing its liquid assets.  Further, the substantial growth in cash for the last year also indicates that the company has the ability to raise funds when needed.

Disney's 2021 Summary Balance Sheet

Column1

2021

2020 2019 2018

2017

Cash

                     15,959

                 17,914                    5,418                    4,150

                   4,017

Short Term Investment                         -                         -                         -
Account Receivable

                     13,367

                 12,708                  15,418                    9,334

                   8,633

Inventory

                       1,331

                   1,583                    1,649                    1,392

                   1,373

Other                              -                         -                         -                         -                         -
Current Assets

                   33,657

               35,251                28,124                16,825

               15,889

Net PPE

                     26,972

                 26,594                  26,174                  24,474

                 25,006

Goodwill

                     78,071

                 77,689                  80,293                  31,269

                 31,426

Other                              -                         -                         -                         -                         -
Total Assets

                 203,609

             201,549              193,984                98,598

               95,789

Accounts Payable

                     20,894

                 16,801                  17,942                    9,479

                   8,855

Accrued Expense                              -                         -                         -                         -                         -
Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable                              -                         -                         -                         -                         -
LT Debt - Current

                       5,866

                   5,711                    8,857                    3,790

                   6,172

Other                              -                         -                         -                         -                         -
Total Current Liabilities

                     31,077

                 26,628                  31,521                  17,860

                 19,595

LT Debt

                     48,540

                 52,917                  31,521                  17,084

                 19,119

Other                              -                         -                         -                         -                         -
Total Liabilities

                 110,598

             113,286              100,095                45,766

               50,785

Common Stock

                     55,471

                 54,497                  53,907                  36,779

                 36,248

Treasury

                          907

                      907                       907                  67,588

                 64,011

Retained Earnings

                     40,429

                 38,315                  42,494                  82,679

                 72,606

Other                              -                         -                         -                         -
Total Equity

                   93,011

               88,263                93,889                52,832

               45,004

Total Equity & Liability

                 203,609

             201,549              193,984                98,598

               95,789

 

Section 3: Disney Financial Ratios Analyzed

For this section, I have chosen several different financial ratios to review for Disney from 2016 to 2020.  In reviewing each of their financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of their important Financial ratios. 

Disney Current Ratio.

The Walt Disney Company's current ratio for 2016 was 1.01.  The next year, it slightly declined to .81 in 2017.  However, in the next three years, the current ratio for the company would substantially increase, ending 2020 at 1.3.

Disney Total Asset Turnover.

Disney's total asset turnover ended 2016 at .6.  In the next two years, Disney would maintain this total asset turnover level.  However, in 2019 and 2020, the organization's total asset turnover would fall substantially, ending 2020 at .32. 

Disney Return on Assets.

In 2016, Disney's return on assets ended at approximately 10.6%.  In the next two years, the organization's return on assets would grow moderately, ending 2018 at 13.2%.  Unfortunately, in the next two years, the organization's return on assets would fall substantially, ending 2020 at -1.2%.

Disney Debt ratio.

Disney's debt ratio ended in 2016 at 17.9%.  In 2017, the organization's debt ratio would increase moderately to 19.9%.  In the next two years, the organization's debt ratio would continue to fall, ending 2019 at 16.2%.  However, in 2020, the organization's debt ratio substantially increased, ending the year at 26.2%.  The substantial increase in the debt ratio for 2020 may have been due to Disney's need for short-term liquidity.  From this need, the organization took on substantial debt.  If this was the case, then investors should anticipate a reduction in overall debt over the next several years, which will inherently lower the risk for investment in the company.

Disney's Liquidity Ratios

Ratios 2021 2020
Current Ratio                           1.08                    1.32
Cash Ratio                           0.51                    0.67
Quick Ratio                           1.04                    1.26
Net Working Capital                         2,580                  8,623

Disney's Asset Utilization

Ratios 2021 2020
Total Asset Turnover                           0.33                    0.32
Fixed Asset Turnover                           2.50                    2.46
Days Sales Outstanding                         70.58                  78.50
Inventory Turnover (Using Sales)                         46.27                  40.46
Inventory Turnover (Using COGS)                         30.98                  27.15
Accounts Receivable Turnover                           5.17                    4.65
Working Capital Turnover                         26.13                    7.58
AP Turnover                           2.38                    2.52
Average Days Inventory                         11.78                  13.44
Average Days Payable                       153.29                144.72

Disney's Profitability Ratios

Ratios 2021 2020
Return on Assets 1.23% -1.23%
Return on Equity 2.70% -2.80%
Net Profit Margin 3.72% -3.78%
Gross Profit Margin 33.06% 32.89%
Operating Profit Margin 5.88% -0.39%
Basic Earning Power 1.95% -0.13%
ROCE 2.30% -0.14%
Capital Employed                     172,532              174,921
ROIC 2.66% -0.24%

Disney's Debt Ratios

Ratios 2021 2020
Debt Ratio 26.72% 29.09%
Debt/Equity 58.49% 66.42%
Times Interest Earned                           2.82                  (0.17)