Disney's Financial Statements and Financial Ratios Analyzed from 2015 to 2019
Thanks for visiting my 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 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 were I use plain English to explain concepts.
Enjoy the preliminary information and for a more detailed analysis, buy the financial report!
Paul Borosky, MBA.
Sample Financial Report
Walt Disney Company Summary From 2015 to 2019
The Disney Company was start in 1923. The firm’s specialty is media sales and theme park admission sales. Disney does business on a global scale. Their headquarters is located at 500 South Buena Vista Street in Burbank, CA.
They employ about 200,000 people.
The current executive team and compensation are as follows.
|Robert Iger||CEO||22.02 Million|
|Christine McCarthy||CFO||6.91 Million|
|Alan Braverman||Gen. Counsel||6.42 Million|
|Mary Parker||Chief HR Officer||5.66 Million|
Walt Disney Financial Report Sources
"Walt Disney Company 2019 Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA., doctoral candidate, and owner of Quality Business Plan. In this summarized book, the author researched Walt Disney Company's 10k, Disney's 2019 10k annual report, Disney's 2016 10k annual report, Disney's 2015 10k annual report, and Disney's 2019 10k annual report as the basis for information gathering. Once all Walt Disney Company's 10k annual statements were collected, the author then inserted summarized income statement information and Disney's summarized balance sheet information into a customized financial template.
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 2015 to 2019, in most cases.
Revenue Growth: From 2018 to 2019, Disney’s revenue grew at a pace of 17.1%. Over the last five years, the company’s growth average was approximately 7.5%. If their exponential growth from the last year continues, the organization will be in an excellent position to further exploit its many revenue channels.
COGS: Disney’s cost of goods sold, as a percentage of revenue, has been increasing steadily for the last five years. In 2015, the cost of goods sold as a percent of revenues was approximately 54%. This percentage grew to 60.4% in 2019. This indicates that the company’s operations are becoming more and more expensive. Further, these expenses are not being passed on to customers in the form of higher prices.
Walt Disney 2019 Income Statement
|R & D||-||-||-||-||-|
Section 2: Disney's Balance Sheet – Summary Analysis
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 the Disney's balance sheet line item, such as cash, property, plant and equipment, and liabilities between 2015 to 2019. Next, I then offer a summary analysis of Disney’s important balance sheet line items.
Cash: Disney’s cash position has remained between $4 billion to $5.4 billion. The $5.4 billion was registered in 2019. This shows that the organization is increasing its cash position. A reason for this may be that their operational expenses require more liquidity. Also, the company may be storing cash for future acquisitions.
Accounts Receivable: The firm’s accounts receivable has ballooned from 15.3% of sales to 22.2% of sales. This growth may indicate that the company is distributing more of their products to retailers. Also, this may indicate that the company is loosening their credit policies. A final reason for the substantial growth in this line item could be that the company is not being as efficient in their accounts receivable department as previous years.
Walt Disney Summary Balance Sheet 2019
|Short Term Investment||-||-||-||-||-|
|LT Debt - Current||8,857||3,790||6,172||3,687||4,563|
|Total Current Liabilities||31,521||17,860||19,595||16,842||16,334|
|Total Equity & Liability||193,984||98,598||95,789||92,033||88,182|
Section 3: Disney's Financial Ratio Summary From 2015 to 2019
For this section, I have chosen several different financial ratios to review for Disney from 2015 to 2019. In reviewing each of Disney’s 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 Disney’s Important Financial ratios.
Disney Current Ratio
Disney’s current ratio started in 2016 at 1.03. In the last five years, this ratio has declined to .89. Financial analysts often consider any current ratio below 1.0 as an indicator of possible financial difficulties within the next 12 months. However, over the last several years, more industries and competitors have been reducing their current asset positions as compared to current liabilities. This has led to more and more organizations having a current ratio below 1.0.
By doing this, organizations, such as Disney, can use their substantial daily cash flows to support operations. This enables the firm to use other current resources for growth or operational expenses.
Disney Total Asset Turnover
Disney’s total asset turnover was .59 in 2015. This ratio steadily declined to .36 in 2019. This shows that the firm is underutilizing its assets as an organization. Usually, to improve total asset turnover, companies may choose to liquidate assets. For Disney, this may include selling unused land.
Disney Return on Assets
Disney’s return on assets has fallen from 10% in 2015 to 6% in 2019. This indicates that the company is using more assets to generate fewer sales. Also, this may indicate that the organization is offering more amenities at its theme parks and not covering or recuperating the cost through ticket sales.
Disney Debt to Equity Ratio
Disney’s debt to equity ratio is 33.6%. This is up moderately from 26.3% in 2015. However, this further indicates that Disney is not exploiting historically low-interest rates at an optimal level.
Walt Disney Liquidity Ratios 2019
|Net Working Capital||4,543||5,397|
Walt Disney Asset Utilization 2019
|Total Asset Turnover||0.36||0.60|
|Fixed Asset Turnover||2.20||2.01|
|Days Sales Outstanding||80.89||57.32|
|Accounts Receivable Turnover||4.51||6.37|
|Working Capital Turnover||15.31||11.01|
|Average Days Inventory||0.12||0.12|
|Average Days Payable||0.01||0.02|
Walt Disney Profitability Ratios 2019
|Return on Assets||5.97%||13.25%|
|Return on Equity||12.34%||24.73%|
|Net Profit Margin||16.65%||21.98%|
|Gross Profit Margin||39.60%||44.94%|
|Operating Profit Margin||20.78%||24.96%|
|Basic Earning Power||7.45%||15.05%|