Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Walt Disney Co., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Walt Disney Co. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Walt Disney Co. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Walt Disney Co. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Walt Disney Co. working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Walt Disney Co. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Walt Disney Co. operating cycle improved from 2021 to 2022 and from 2022 to 2023. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Walt Disney Co. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Walt Disney Co. cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |
Inventory Turnover
Walt Disney Co., inventory turnover calculation, comparison to benchmarks
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 2023 Calculation
Inventory turnover = Cost of revenues, exclusive of depreciation and amortization ÷ Inventories
= 59,201 ÷ 1,963 = 30.16
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Walt Disney Co. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Receivables Turnover
Walt Disney Co., receivables turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 88,898) | 82,722) | 67,418) | 65,388) | 69,570) | 59,434) | |
| Receivables, net | 12,330) | 12,652) | 13,367) | 12,708) | 15,481) | 9,334) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 7.21 | 6.54 | 5.04 | 5.15 | 4.49 | 6.37 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Alphabet Inc. | 6.41 | 7.03 | 6.55 | 5.90 | 6.39 | — | |
| Comcast Corp. | 8.80 | 9.58 | 9.69 | 9.03 | 9.65 | — | |
| Meta Platforms Inc. | 8.34 | 8.66 | 8.40 | 7.58 | 7.43 | — | |
| Netflix Inc. | 26.20 | 31.97 | 36.92 | 40.92 | 44.36 | — | |
| Receivables Turnover, Sector | |||||||
| Media & Entertainment | 7.50 | 7.94 | 7.41 | 6.90 | 6.95 | — | |
| Receivables Turnover, Industry | |||||||
| Communication Services | 7.76 | 8.07 | 7.77 | 7.20 | 7.04 | — | |
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 2023 Calculation
Receivables turnover = Revenues ÷ Receivables, net
= 88,898 ÷ 12,330 = 7.21
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Walt Disney Co. receivables turnover ratio improved from 2021 to 2022 and from 2022 to 2023. |
Payables Turnover
Walt Disney Co., payables turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cost of revenues, exclusive of depreciation and amortization | 59,201) | 54,401) | 45,131) | 43,880) | 42,018) | 32,726) | |
| Accounts and accrued payables | 15,125) | 16,205) | 16,357) | 13,183) | 13,778) | 6,503) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 3.91 | 3.36 | 2.76 | 3.33 | 3.05 | 5.03 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Alphabet Inc. | 17.79 | 24.61 | 18.38 | 15.16 | 12.93 | — | |
| Comcast Corp. | 2.96 | 3.05 | 3.09 | 2.91 | 3.18 | — | |
| Meta Platforms Inc. | 5.35 | 5.06 | 5.55 | 12.54 | 9.37 | — | |
| Netflix Inc. | 26.38 | 28.54 | 20.70 | 23.28 | 18.45 | — | |
| Payables Turnover, Sector | |||||||
| Media & Entertainment | 6.76 | 6.66 | 5.90 | 6.03 | 5.39 | — | |
| Payables Turnover, Industry | |||||||
| Communication Services | 4.91 | 4.73 | 4.79 | 4.63 | 4.48 | — | |
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).
1 2023 Calculation
Payables turnover = Cost of revenues, exclusive of depreciation and amortization ÷ Accounts and accrued payables
= 59,201 ÷ 15,125 = 3.91
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Walt Disney Co. payables turnover ratio increased from 2021 to 2022 and from 2022 to 2023. |
Working Capital Turnover
Walt Disney Co., working capital turnover calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 32,763) | 29,098) | 33,657) | 35,251) | 28,124) | 16,825) | |
| Less: Current liabilities | 31,139) | 29,073) | 31,077) | 26,628) | 31,341) | 17,860) | |
| Working capital | 1,624) | 25) | 2,580) | 8,623) | (3,217) | (1,035) | |
| Revenues | 88,898) | 82,722) | 67,418) | 65,388) | 69,570) | 59,434) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 54.74 | 3,308.88 | 26.13 | 7.58 | — | — | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Alphabet Inc. | 3.43 | 2.96 | 2.08 | 1.55 | 1.51 | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | 2.53 | 3.59 | 2.59 | 1.42 | 1.38 | — | |
| Netflix Inc. | 31.89 | 23.67 | — | 12.78 | — | — | |
| Working Capital Turnover, Sector | |||||||
| Media & Entertainment | 5.30 | 5.15 | 3.53 | 2.48 | 2.88 | — | |
| Working Capital Turnover, Industry | |||||||
| Communication Services | 10.57 | 11.82 | 7.57 | 4.32 | 6.31 | — | |
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 2023 Calculation
Working capital turnover = Revenues ÷ Working capital
= 88,898 ÷ 1,624 = 54.74
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Working capital turnover | An activity ratio calculated as revenue divided by working capital. | Walt Disney Co. working capital turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Average Inventory Processing Period
Walt Disney Co., average inventory processing period calculation, comparison to benchmarks
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 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 30.16 = 12
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. |
Average Receivable Collection Period
Walt Disney Co., average receivable collection period calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 7.21 | 6.54 | 5.04 | 5.15 | 4.49 | 6.37 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 51 | 56 | 72 | 71 | 81 | 57 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Alphabet Inc. | 57 | 52 | 56 | 62 | 57 | — | |
| Comcast Corp. | 41 | 38 | 38 | 40 | 38 | — | |
| Meta Platforms Inc. | 44 | 42 | 43 | 48 | 49 | — | |
| Netflix Inc. | 14 | 11 | 10 | 9 | 8 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Media & Entertainment | 49 | 46 | 49 | 53 | 53 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Communication Services | 47 | 45 | 47 | 51 | 52 | — | |
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 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 7.21 = 51
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Walt Disney Co. number of days of receivables outstanding improved from 2021 to 2022 and from 2022 to 2023. |
Operating Cycle
Walt Disney Co., operating cycle calculation, comparison to benchmarks
No. days
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 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 12 + 51 = 63
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Walt Disney Co. operating cycle improved from 2021 to 2022 and from 2022 to 2023. |
Average Payables Payment Period
Walt Disney Co., average payables payment period calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 3.91 | 3.36 | 2.76 | 3.33 | 3.05 | 5.03 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 93 | 109 | 132 | 110 | 120 | 73 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Alphabet Inc. | 21 | 15 | 20 | 24 | 28 | — | |
| Comcast Corp. | 123 | 120 | 118 | 125 | 115 | — | |
| Meta Platforms Inc. | 68 | 72 | 66 | 29 | 39 | — | |
| Netflix Inc. | 14 | 13 | 18 | 16 | 20 | — | |
| Average Payables Payment Period, Sector | |||||||
| Media & Entertainment | 54 | 55 | 62 | 61 | 68 | — | |
| Average Payables Payment Period, Industry | |||||||
| Communication Services | 74 | 77 | 76 | 79 | 81 | — | |
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 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.91 = 93
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Walt Disney Co. number of days of payables outstanding decreased from 2021 to 2022 and from 2022 to 2023. |
Cash Conversion Cycle
Walt Disney Co., cash conversion cycle calculation, comparison to benchmarks
No. days
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 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 12 + 51 – 93 = -30
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Walt Disney Co. cash conversion cycle deteriorated from 2021 to 2022 and from 2022 to 2023. |