Stock Analysis on Net

Walt Disney Co. (NYSE:DIS)

Analysis of Operating Leases

Microsoft Excel

Adjustments to Financial Statements for Operating Leases

Walt Disney Co., adjustments to financial statements

US$ in millions

Microsoft Excel
Sep 30, 2023 Oct 1, 2022 Oct 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018
Adjustment to Total Assets
Total assets (as reported) 205,579 203,631 203,609 201,549 193,984 98,598
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)1 3,704 2,360
Total assets (adjusted) 205,579 203,631 203,609 201,549 197,688 100,958
Adjustment to Total Debt
Total debt (as reported) 46,674 48,625 54,693 58,936 47,137 21,028
Add: Operating lease liability (before adoption of FASB Topic 842)2 3,704 2,360
Add: Short-term lease liabilities, operating leases (included in Accounts payable and other accrued liabilities) 740 614 637 747
Add: Long-term lease liabilities, operating leases (included in Other long-term liabilities) 3,258 3,020 2,983 2,640
Total debt (adjusted) 50,672 52,259 58,313 62,323 50,841 23,388

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

1, 2 Equal to total present value of future operating lease payments.


Walt Disney Co., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios for Operating Leases (Summary)

Walt Disney Co., adjusted financial ratios

Microsoft Excel
Sep 30, 2023 Oct 1, 2022 Oct 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018
Total Asset Turnover1
Reported total asset turnover 0.43 0.41 0.33 0.32 0.36 0.60
Adjusted total asset turnover 0.43 0.41 0.33 0.32 0.35 0.59
Debt to Equity2
Reported debt to equity 0.47 0.51 0.62 0.71 0.53 0.43
Adjusted debt to equity 0.51 0.55 0.66 0.75 0.57 0.48
Return on Assets3 (ROA)
Reported ROA 1.15% 1.54% 0.98% -1.42% 5.70% 12.78%
Adjusted ROA 1.15% 1.54% 0.98% -1.42% 5.59% 12.48%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Walt Disney Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt to equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Walt Disney Co. adjusted debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Walt Disney Co. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Walt Disney Co., Financial Ratios: Reported vs. Adjusted


Adjusted Total Asset Turnover

Microsoft Excel
Sep 30, 2023 Oct 1, 2022 Oct 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018
As Reported
Selected Financial Data (US$ in millions)
Revenues 88,898 82,722 67,418 65,388 69,570 59,434
Total assets 205,579 203,631 203,609 201,549 193,984 98,598
Activity Ratio
Total asset turnover1 0.43 0.41 0.33 0.32 0.36 0.60
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Revenues 88,898 82,722 67,418 65,388 69,570 59,434
Adjusted total assets 205,579 203,631 203,609 201,549 197,688 100,958
Activity Ratio
Adjusted total asset turnover2 0.43 0.41 0.33 0.32 0.35 0.59

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

1 Total asset turnover = Revenues ÷ Total assets
= 88,898 ÷ 205,579 = 0.43

2 Adjusted total asset turnover = Revenues ÷ Adjusted total assets
= 88,898 ÷ 205,579 = 0.43

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Walt Disney Co. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Sep 30, 2023 Oct 1, 2022 Oct 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018
As Reported
Selected Financial Data (US$ in millions)
Total debt 46,674 48,625 54,693 58,936 47,137 21,028
Total Disney Shareholder’s equity 99,277 95,008 88,553 83,583 88,877 48,773
Solvency Ratio
Debt to equity1 0.47 0.51 0.62 0.71 0.53 0.43
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Adjusted total debt 50,672 52,259 58,313 62,323 50,841 23,388
Total Disney Shareholder’s equity 99,277 95,008 88,553 83,583 88,877 48,773
Solvency Ratio
Adjusted debt to equity2 0.51 0.55 0.66 0.75 0.57 0.48

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

1 Debt to equity = Total debt ÷ Total Disney Shareholder’s equity
= 46,674 ÷ 99,277 = 0.47

2 Adjusted debt to equity = Adjusted total debt ÷ Total Disney Shareholder’s equity
= 50,672 ÷ 99,277 = 0.51

Solvency ratio Description The company
Adjusted debt-to-equity A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity. Walt Disney Co. adjusted debt-to-equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Sep 30, 2023 Oct 1, 2022 Oct 2, 2021 Oct 3, 2020 Sep 28, 2019 Sep 29, 2018
As Reported
Selected Financial Data (US$ in millions)
Net income (loss) attributable to The Walt Disney Company (Disney) 2,354 3,145 1,995 (2,864) 11,054 12,598
Total assets 205,579 203,631 203,609 201,549 193,984 98,598
Profitability Ratio
ROA1 1.15% 1.54% 0.98% -1.42% 5.70% 12.78%
Adjusted for Operating Leases
Selected Financial Data (US$ in millions)
Net income (loss) attributable to The Walt Disney Company (Disney) 2,354 3,145 1,995 (2,864) 11,054 12,598
Adjusted total assets 205,579 203,631 203,609 201,549 197,688 100,958
Profitability Ratio
Adjusted ROA2 1.15% 1.54% 0.98% -1.42% 5.59% 12.48%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

2023 Calculations

1 ROA = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Total assets
= 100 × 2,354 ÷ 205,579 = 1.15%

2 Adjusted ROA = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Adjusted total assets
= 100 × 2,354 ÷ 205,579 = 1.15%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Walt Disney Co. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.