Walt Disney Financial Statements and Financial Ratios Analysis from 2016 to 2020

Expert Disney Financial Report & Analysis by Paul Borosky, MBA.

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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, please check out the "Financial Report".  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 the 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 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.

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

Sincerely,

Paul, MBA. (Updated 2021)

PDF/Downloadable Version

Disney Financial Report 2020 by Paul Borosky, MBA.

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 2016 to 2020

In this section, I walk through a broad definition as to 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 revenue channels more to ensure continuous revenue growth for investors.

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%

Section 2: Disney Balance Sheet Analyzed from 2016 to 2020

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 with 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 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

Section 3: Disney Financial Ratios Analyzed from 2016 to 2020

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 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 risk for investment in the company.

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