Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company’s debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Walt Disney Co., ROIC calculation, comparison to benchmarks
| Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | Oct 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | (2,945) | 15,999 | 12,121 | 10,148 | 11,316 | 9,024 | |
| Invested capital2 | 174,243 | 169,027 | 79,511 | 79,434 | 74,545 | 67,978 | |
| Performance Ratio | |||||||
| ROIC3 | -1.69% | 9.47% | 15.25% | 12.78% | 15.18% | 13.28% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Activision Blizzard Inc. | 12.24% | 5.80% | 8.57% | 3.09% | 5.66% | — | |
| Alphabet Inc. | 33.62% | 32.72% | 34.31% | 19.71% | 26.91% | — | |
| Charter Communications Inc. | 5.44% | 3.89% | 3.36% | 2.25% | 2.00% | — | |
| Comcast Corp. | 6.16% | 8.16% | 7.36% | 9.13% | 7.92% | — | |
| Facebook Inc. | 34.77% | 27.71% | 36.42% | 37.03% | 25.08% | — | |
| Netflix Inc. | 12.41% | 10.33% | 9.67% | 6.45% | 5.47% | — | |
Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
1 NOPAT. See details »
2 Invested capital. See details »
3 2020 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × -2,945 ÷ 174,243 = -1.69%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Walt Disney Co.’s ROIC deteriorated from 2018 to 2019 and from 2019 to 2020. |
Decomposition of ROIC
Walt Disney Co., decomposition of ROIC
Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2020 year is the decrease in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Walt Disney Co., OPM calculation, comparison to benchmarks
| Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | Oct 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | (2,945) | 15,999 | 12,121 | 10,148 | 11,316 | 9,024 | |
| Add: Cash operating taxes2 | 1,101 | 1,240 | 3,449 | 4,296 | 3,986 | 5,144 | |
| Net operating profit before taxes (NOPBT) | (1,844) | 17,239 | 15,570 | 14,444 | 15,302 | 14,168 | |
| Revenues | 65,388 | 69,570 | 59,434 | 55,137 | 55,632 | 52,465 | |
| Add: Increase (decrease) in deferred revenues | (468) | 1,134 | — | — | — | — | |
| Adjusted revenues | 64,920 | 70,704 | 59,434 | 55,137 | 55,632 | 52,465 | |
| Profitability Ratio | |||||||
| OPM3 | -2.84% | 24.38% | 26.20% | 26.20% | 27.51% | 27.01% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Activision Blizzard Inc. | 36.02% | 23.04% | 20.27% | 22.14% | 17.85% | — | |
| Alphabet Inc. | 25.81% | 23.20% | 23.81% | 24.25% | 26.49% | — | |
| Charter Communications Inc. | 17.10% | 13.71% | 12.38% | 10.14% | 12.78% | — | |
| Comcast Corp. | 17.82% | 19.82% | 20.86% | 22.39% | 21.54% | — | |
| Facebook Inc. | 38.30% | 34.36% | 44.37% | 49.93% | 44.85% | — | |
| Netflix Inc. | 16.83% | 14.43% | 11.64% | 7.81% | 5.97% | — | |
Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2020 Calculation
OPM = 100 × NOPBT ÷ Adjusted revenues
= 100 × -1,844 ÷ 64,920 = -2.84%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Walt Disney Co.’s OPM deteriorated from 2018 to 2019 and from 2019 to 2020. |
Turnover of Capital (TO)
Walt Disney Co., TO calculation, comparison to benchmarks
| Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | Oct 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenues | 65,388 | 69,570 | 59,434 | 55,137 | 55,632 | 52,465 | |
| Add: Increase (decrease) in deferred revenues | (468) | 1,134 | — | — | — | — | |
| Adjusted revenues | 64,920 | 70,704 | 59,434 | 55,137 | 55,632 | 52,465 | |
| Invested capital1 | 174,243 | 169,027 | 79,511 | 79,434 | 74,545 | 67,978 | |
| Efficiency Ratio | |||||||
| TO2 | 0.37 | 0.42 | 0.75 | 0.69 | 0.75 | 0.77 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Activision Blizzard Inc. | 0.41 | 0.37 | 0.44 | 0.44 | 0.39 | — | |
| Alphabet Inc. | 1.49 | 1.61 | 1.58 | 1.69 | 1.25 | — | |
| Charter Communications Inc. | 0.36 | 0.33 | 0.32 | 0.30 | 0.21 | — | |
| Comcast Corp. | 0.46 | 0.50 | 0.44 | 0.52 | 0.51 | — | |
| Facebook Inc. | 1.07 | 1.08 | 0.93 | 0.98 | 0.71 | — | |
| Netflix Inc. | 0.85 | 0.84 | 0.93 | 1.10 | 1.39 | — | |
Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
1 Invested capital. See details »
2 2020 Calculation
TO = Adjusted revenues ÷ Invested capital
= 64,920 ÷ 174,243 = 0.37
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Walt Disney Co.’s TO deteriorated from 2018 to 2019 and from 2019 to 2020. |
Effective Cash Tax Rate (CTR)
Walt Disney Co., CTR calculation, comparison to benchmarks
| Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | Oct 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | (2,945) | 15,999 | 12,121 | 10,148 | 11,316 | 9,024 | |
| Add: Cash operating taxes2 | 1,101 | 1,240 | 3,449 | 4,296 | 3,986 | 5,144 | |
| Net operating profit before taxes (NOPBT) | (1,844) | 17,239 | 15,570 | 14,444 | 15,302 | 14,168 | |
| Tax Rate | |||||||
| CTR3 | — | 7.19% | 22.15% | 29.74% | 26.05% | 36.31% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Activision Blizzard Inc. | 17.67% | 32.56% | 3.76% | 68.48% | 19.44% | — | |
| Alphabet Inc. | 12.78% | 12.46% | 8.68% | 52.04% | 18.98% | — | |
| Charter Communications Inc. | 11.92% | 14.79% | 15.31% | 26.89% | 24.85% | — | |
| Comcast Corp. | 25.38% | 18.28% | 19.69% | 22.14% | 28.59% | — | |
| Facebook Inc. | 15.05% | 25.67% | 11.36% | 24.12% | 21.75% | — | |
| Netflix Inc. | 12.87% | 14.95% | 10.93% | 24.64% | 34.18% | — | |
Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2020 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 1,101 ÷ -1,844 = —
4 Click competitor name to see calculations.