Disney's Financial Statements and Financial Ratios Analyzed from 2014 to 2018

"Walt Disney Company 2018 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 2017 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. 

Walt Disney Company's Company Summary From 2014 to 2018

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. 

Walt Disney 2019 Income Statement

Column1 2019 2018 2017 2016 2015
Revenues                    69,570                    59,434                    55,137                    55,632                      52,465
COGS                    42,018                    32,726                    30,306                    29,993                      28,364
Gross Profit                    27,552                    26,708                    24,831                    25,639                      24,101
SG&A                    11,541                      8,860                      8,176                      8,754                        8,523
Depreciation                            -                      3,011                      2,782                      2,527                        2,354
R & D                            -                            -                            -                            -                             -
Other                            -                            -                            -                            -                             -
Operating Expenses                    55,111                    11,871                    10,958                    11,281                      10,877
EBIT                    14,459                    14,837                    13,873                    14,358                      13,224
Other Income                            -                         601                           78                            -
Interest Expense                         978                         574                         385                         260                           117
EBT                    13,944                    14,729                    13,788                    14,868                      13,868
Taxes                      3,031                      1,663                      4,422                      5,078                        5,016
Net Income                   11,584                   13,066                     9,366                     9,790                      8,852

Walt Disney Summary Balance Sheet 2019

Column1 2019 2018 2017 2016 2015
Cash                        5,418                    4,150                    4,017                    4,610                    4,269
Short Term Investment                              -                         -                         -                         -                         -
Account Receivable                      15,418                    9,334                    8,633                    9,065                    8,019
Inventory                        1,649                    1,392                    1,373                    1,390                    1,571
Other                           979                    1,949                    1,866                    1,901                    2,132
Current Assets                    28,124                16,825                15,889                16,966                16,758
Net PPE                      31,603                  29,540                  28,406                  27,349                  25,179
Goodwill                      80,293                  31,269                  31,426                  27,810                  27,826
Other                        4,715                  14,152                  13,073                  12,959                  11,247
Total Assets                  193,984                98,598                95,789                92,033                88,182
Accounts Payable                      17,942                    9,479                    8,855                    9,130                    7,844
Accrued Expense                              -                         -                         -                         -                         -
Accrued Taxes                              -                         -                         -                         -                         -
Notes Payable                              -                         -                         -                         -                         -
LT Debt - Current                        8,857                    3,790                    6,172                    3,687                    4,563
Other                        4,722                    4,591                    4,568                    4,025                    3,927
Total Current Liabilities                      31,521                  17,860                  19,595                  16,842                  16,334
LT Debt                      31,521                  17,084                  19,119                  16,483                  12,773
Other                      13,580                    6,590                    6,443                    7,730                  10,420
Total Liabilities                  100,095                45,766                50,785                44,710                39,527
Common Stock                      53,907                  36,779                  36,248                  35,859                  35,122
Treasury                           907                  67,588                  64,011                  54,703                  47,204
Retained Earnings                      42,494                  82,679                  72,606                  66,088                  59,028
Other                        5,012                    4,059                    3,689                    3,979                    2,421
Total Equity                    93,889                52,832                45,004                47,323                48,655
Total Equity & Liability                  193,984                98,598                95,789                92,033                88,182

Disney's Financial Ratio Summary From 2014 to 2018

Disney’s current ratio has fluctuated between 1.14 to .94 over the last five years.  The golden rule for the current ratio is that firms should be close to one.  For Disney, the Golden rule holds true.  As a result, Disney does seem to have sufficient liquid assets to cover their next 12 months liabilities.

 Disney’s inventory turnover has increased from 31.02 to 42.7.  This shows that the firm is holding less inventory.  This is an excellent strategy to avoid selling obsolete inventory.  However, the firm does run the risk of sellout for some products.  This would lead to mitigated or listened revenues.

Disney’s return on assets has climbed from 9.1% to 13.25%.  This shows that the firm is making more money on assets of a continuous basis.

The firms profit margin has climbed from 16.4% to 21.98%.  Most of the growth for the net profit margin came in the last year.  Further, as noted previously, the subsample substantial jump was not based on revenues.  As a result, investors should not expect profit margins to continue to grow at this pace.

Walt Disney Liquidity Ratios 2019

Ratios 2019 2018 2017 2016 2015
Current Ratio                           0.89                    0.94                    0.81                    1.01                    1.03
Cash Ratio                           0.17                    0.23                    0.21                    0.27                    0.26
Quick Ratio                           0.84                    0.86                    0.74                    0.92                    0.93
Net Working Capital                         4,543                  5,397                  5,168                  5,935                  6,015

Walt Disney Asset Utilization 2019

Ratios 2019 2018 2017 2016 2015
Total Asset Turnover                           0.36                    0.60                    0.58                    0.60                    0.59
Fixed Asset Turnover                           2.20                    2.01                    1.94                    2.03                    2.08
Days Sales Outstanding                         80.89                  57.32                  57.15                  59.48                  55.79
Inventory Turnover                         42.19                  42.70                  40.16                  40.02                  33.40
Accounts Receivable Turnover                           4.51                    6.37                    6.39                    6.14                    6.54
Working Capital Turnover                         15.31                  11.01                  10.67                    9.37                    8.72
AP Turnover                           3.88                    6.27                    6.23                    6.09                    6.69
Average Days Inventory                           0.12                    0.12                    0.11                    0.11                    0.09
Average Days Payable                           0.01                    0.02                    0.02                    0.02                    0.02

Walt Disney Profitability Ratios 2019

Ratios 2019 2018 2017 2016 2015
Return on Assets 5.97% 13.25% 9.78% 10.64% 10.04%
Return on Equity 12.34% 24.73% 20.81% 20.69% 18.19%
Net Profit Margin 16.65% 21.98% 16.99% 17.60% 16.87%
Gross Profit Margin 39.60% 44.94% 45.04% 46.09% 45.94%
Operating Profit Margin 20.78% 24.96% 25.16% 25.81% 25.21%
Basic Earning Power 7.45% 15.05% 14.48% 15.60% 15.00%
ROCE 8.90% 18.38% 18.21% 19.10% 18.41%
Capital Employed                     162,463                80,738                76,194                75,191                71,848
ROIC 31.31% 37.67% 28.07% 28.40% 27.06%

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