Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Walt Disney Co. (NYSE:DIS)

Return on Capital (ROC)

Advanced level

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Oct 3, 2020 -1.69% = -2.84% × 0.37 × 100.00%
Sep 28, 2019 9.47% = 24.38% × 0.42 × 92.81%
Sep 29, 2018 15.25% = 26.20% × 0.75 × 77.85%
Sep 30, 2017 12.78% = 26.20% × 0.69 × 70.26%
Oct 1, 2016 15.18% = 27.51% × 0.75 × 73.95%
Oct 3, 2015 13.28% = 27.01% × 0.77 × 63.69%

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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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

Microsoft Excel LibreOffice Calc
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.