Walt Disney Co. (NYSE:DIS)

Asset Turnover

The reported total asset turnover ratio exhibits a consistent upward trend over the analyzed periods, increasing from 0.32 to 0.48. This indicates a progressive improvement in the efficiency with which the company utilizes its assets to generate revenue. The adjusted total asset turnover ratio mirrors this positive trend, moving from 0.32 to 0.48 as well, which supports the reliability of the reported figures.

Liquidity Ratios

The reported current ratio declines overall, from 1.32 in 2020 to 0.71 in 2025, reflecting a reduction in the company's short-term liquidity position. Notably, a sharp decrease occurs after 2023, with values dropping below 1, which may raise concerns about meeting short-term obligations. The adjusted current ratio follows a similar downward pattern, reducing from 1.56 to 0.86, though it remains slightly higher than the reported ratios, indicating some adjustment consideration but still confirming the liquidity erosion.

Leverage Ratios

The debt to equity ratio demonstrates a steady decrease from 0.71 in 2020 to 0.38 in 2025 in reported terms, suggesting a reduction in reliance on debt financing relative to equity. The adjusted debt to equity ratio also declines, from 0.57 to 0.37, reinforcing this observation. Debt to capital ratios similarly trend downward, moving from 0.41 to 0.28 (reported) and 0.36 to 0.27 (adjusted), implying a gradual deleveraging process. Financial leverage, which captures the extent by which assets are funded by equity and debt, decreases from 2.41 to 1.80 in reported figures and from 1.84 to 1.59 when adjusted, further confirming reduced financial risk.

Profitability Margins

The reported net profit margin improves significantly over the period, transitioning from a negative margin of -4.38% in 2020 to a robust positive 13.14% in 2025. Adjusted margins show a similar but slightly lower progression, from -7.61% to 12.24%, suggesting operational enhancements and better profitability. Despite some fluctuations, especially notable around 2023, the long-term trend is strongly positive, indicating improving cost management or revenue quality.

Return Ratios

Return on equity (ROE) exhibits growth in reported terms from a negative -3.43% in 2020 to a positive 11.29% in 2025, pointing to improved shareholder value creation. Adjusted ROE, while somewhat more variable, also demonstrates a positive trend from -4.51% to 9.33%. Return on assets (ROA) follows a comparable pattern, increasing from negative levels (-1.42% reported) to 6.28% by 2025, indicating higher efficiency in asset utilization to generate earnings. Adjusted ROA also rises significantly from -2.45% to 5.87%. These trends suggest enhanced profitability coupled with efficient use of resources.

Overall Analysis

The analysis reveals a company undergoing progressive improvement in asset efficiency, profitability, and financial health over the examined timeframe. The steady reduction in leverage ratios aligns with improved liquidity and a strengthening balance sheet. Profitability indicators show substantial recovery from initial negative returns to strong positive margins and returns, signaling effective operational and strategic adjustments. Some challenges in liquidity emerge towards the latter years, potentially necessitating attention, but the overall financial performance indicates robust growth and enhanced shareholder value.

The financial data reveals several noteworthy trends in the company's performance and asset utilization over the observed periods.

Revenues

Revenues have shown a consistent upward trajectory, increasing from $65,388 million in 2020 to $94,425 million in 2025. This steady growth indicates continued expansion and potentially successful market strategies or product offerings driving higher sales over the years.

Total Assets

Total assets remained relatively stable between 2020 and 2023, fluctuating slightly around the $201 billion to $205 billion mark. However, there is a noticeable decline starting in 2024, where total assets decreased to approximately $196 billion, with a minor increase in 2025 to roughly $197.5 billion. This could suggest asset optimization, divestments, or other balance sheet management activities during the later period.

Reported Total Asset Turnover

The reported total asset turnover ratio improves steadily year over year, progressing from 0.32 in 2020 to 0.48 in 2025. This increase signifies enhanced efficiency in utilizing assets to generate revenues, demonstrating better asset management or higher operational efficiency.

Adjusted Revenues and Assets

Adjusted revenues exhibit a pattern closely aligned with reported revenues, confirming the robustness of the revenue growth trend. Adjusted total assets also mirror the movements in reported total assets, with stability in the initial years and a decline in 2024, followed by a slight recovery in 2025.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio corroborates the trend seen in reported figures, reinforcing the observation of steadily improving asset utilization, rising from 0.32 in 2020 to 0.48 in 2025.

Overall, the combination of growing revenues alongside flat to slightly declining asset bases results in improved asset turnover ratios, suggesting increasingly efficient use of the company's assets to drive revenue growth. The decline in total assets in the later years does not hinder revenue generation, implying effective capital management or operational improvements.

Current Assets

Current assets showed a declining trend over the entire period, decreasing from $35,251 million in 2020 to $24,267 million in 2025. There was a slight recovery in 2023 following a drop in 2022, but the overall trajectory remained downward.

Current Liabilities

Current liabilities rose steadily from 2020 to 2024, increasing from $26,628 million to $34,599 million, then slightly decreased to $34,162 million in 2025. This indicates growing short-term obligations over the years, which may exert pressure on liquidity.

Reported Current Ratio

The reported current ratio, which measures the ability to cover short-term liabilities with short-term assets, declined from 1.32 in 2020 to 0.71 in 2025. This consistent decrease suggests a weakening liquidity position as the ratio fell below 1 from 2022 onwards, indicating current liabilities exceeded current assets.

Adjusted Current Assets

Adjusted current assets, factoring in certain modifications, mirrored the pattern of reported current assets, decreasing from $35,677 million in 2020 to $24,357 million in 2025 with a minor rebound in 2023. This adjustment did not significantly alter the downward trend observed.

Adjusted Current Liabilities

Adjusted current liabilities also increased over the years but to a lesser extent compared to reported current liabilities. They rose from $22,940 million in 2020 to $29,012 million in 2024 before slightly decreasing to $28,473 million in 2025, indicating somewhat moderated growth in obligations after adjustments.

Adjusted Current Ratio

The adjusted current ratio declined from 1.56 in 2020 to 0.86 in 2025, indicating deterioration in liquidity despite improvements from adjustments. The ratio stayed above 1 until 2023 but dropped below 1 in 2024 and 2025, signaling potential concerns about the company's short-term financial health after these years.

Overall Analysis

The data reflects a broadly declining liquidity position over the six-year period. Both reported and adjusted current ratios declined, with the company moving from a comfortable liquidity state (ratios above 1) to one where current liabilities exceed current assets. The increase in current liabilities alongside the falling current assets suggests increasing short-term financial pressures. Adjustments to current assets and liabilities somewhat improve the liquidity ratios but do not prevent the downward trend. These trends highlight the need for attention to working capital management and potentially raising liquidity to safeguard against solvency risks.

Total Debt

There is a consistent downward trend in total debt over the six-year period, with values declining from approximately $58.9 billion in 2020 to around $42.2 billion in 2025. This reflects a significant reduction in the company’s leverage.

Total Disney Shareholder’s Equity

The shareholder’s equity has steadily increased each year, growing from about $83.6 billion in 2020 to nearly $110 billion in 2025. This upward movement indicates strengthening of the company’s net asset position.

Reported Debt to Equity Ratio

The reported debt to equity ratio decreases from 0.71 in 2020 to 0.38 in 2025. This steady decline reveals an improving balance between debt and equity financing, suggesting reduced financial risk and enhanced solvency over time.

Adjusted Total Debt

Adjusted total debt figures demonstrate a similar decreasing trend to reported total debt, falling from approximately $62.3 billion in 2020 to $45.4 billion in 2025. This adjustment confirms the company’s ongoing efforts to reduce debt levels.

Adjusted Total Equity

Adjusted total equity shows growth from $109.5 billion in 2020 to $124 billion in 2025, with a slight dip observed around 2024. Overall, the trend remains upward, emphasizing an increase in the company’s adjusted net worth over the period.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio declines from 0.57 in 2020 to 0.37 in 2025, with a minor increase noted in 2024. This decreasing ratio aligns with the pattern of debt reduction combined with equity growth, reinforcing improved financial stability.

Total Debt

The total debt demonstrates a consistent downward trend over the examined periods, decreasing from 58,936 million USD to 42,188 million USD. This reflects a substantial reduction in debt levels, indicating efforts to reduce financial leverage.

Total Capital

Total capital exhibits a gradual increase from 142,519 million USD to 152,057 million USD. This steady growth suggests an expansion in resources or equity base alongside the company's operations.

Reported Debt to Capital Ratio

This ratio has steadily declined from 0.41 to 0.28, highlighting an improvement in the company's capital structure by reducing debt relative to total capital. Such a decline implies a lower financial risk profile over time.

Adjusted Total Debt

Adjusted total debt also shows a consistent decrease, starting at 62,323 million USD and falling to 45,423 million USD. This trend aligns with the reduction seen in reported total debt, reinforcing the trend of deleveraging when considering adjusted figures.

Adjusted Total Capital

Adjusted total capital experienced moderate fluctuations, rising from 171,778 million USD to a peak of approximately 176,931 million USD, followed by a slight decline to 169,394 million USD in the final period. Despite this, the overall level remains relatively stable with minor variations.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio decreased from 0.36 to 0.27 over the observed periods. This decline mirrors the trend in the reported ratio, suggesting effective management of debt in relation to adjusted capital.

Summary

Overall, the data indicates a clear and consistent reduction in debt levels, both in absolute terms and relative to capital. Total and adjusted capital levels show moderate growth and stability, respectively. The decline in debt to capital ratios reflects strengthening financial stability and a prudent approach to capital structure management. These trends suggest improving creditworthiness and reduced financial risk.

Total assets

The total assets of the company remained relatively stable from 2020 to 2025, fluctuating slightly around the $200 billion mark. The asset base experienced minor variations, reaching a peak of approximately $205.6 billion in 2023 before decreasing to just under $197.5 billion in 2025. This indicates a consistent asset base with no significant expansion or contraction over the observed period.

Total Disney Shareholder’s equity

Shareholders' equity showed a steady upward trend throughout the years. Starting from about $83.6 billion in 2020, it increased each year to reach roughly $109.9 billion in 2025. This growth in equity suggests improving retained earnings and capital accumulation, reflecting a strengthening financial position from an equity perspective.

Reported financial leverage (ratio)

The reported financial leverage ratio demonstrated a clear downward trend, moving from 2.41 in 2020 to 1.8 in 2025. This decline suggests a gradual reduction in reliance on debt relative to equity, indicating a more conservative capital structure and potentially lower financial risk over the period.

Adjusted total assets

Similar to the reported total assets, the adjusted total assets displayed minor fluctuations but generally remained stable, with values fluctuating around the $195 billion to $205 billion range. This stability implies consistent asset valuation after adjustments, with no significant investment or divestiture activity altering the asset base substantially.

Adjusted total equity

Adjusted equity showed a growth pattern from approximately $109.5 billion in 2020 to about $124 billion in 2025, with a peak in 2023 at around $126.3 billion. Although there was a slight dip after 2023, the overall trend remains positive. This pattern reinforces the observation of strengthening equity, even after adjustments.

Adjusted financial leverage (ratio)

The adjusted financial leverage ratio decreased from 1.84 in 2020 to 1.59 in 2025, with a minor increase observed around 2024. This indicates a progressive reduction in adjusted leverage, aligning with the trend seen in reported leverage and further supporting the conclusion of an improving capital structure with reduced financial risk.

The financial data exhibits notable fluctuations and a general upward trend in profitability and revenues over the reviewed years. Initially, there is a significant net loss recorded, which transitions to consistent profitability in subsequent periods, indicating substantial recovery and growth.

Net Income (Loss) Attributable

The company experienced a considerable net loss in the earliest period, followed by positive net income in all later years. The net income showed a steady increase, culminating in a remarkable rise in the final reported year, more than doubling from the previous peak. This indicates enhanced operational efficiency and possibly stronger market positioning or successful strategic initiatives.

Revenues

The revenue stream demonstrated consistent growth throughout the period, with incremental increases each year. The growth appears gradual initially but becomes more pronounced in later years, suggesting effective revenue generation and possibly expansion of business segments or acquisitions.

Reported Net Profit Margin

The net profit margin moved from a negative figure to positive in the subsequent years, reflecting improved profitability relative to sales. The margin experienced some variability but displayed a strong upward trajectory, reaching a double-digit percentage in the latest period. This highlights enhanced cost control or increased pricing power, contributing to higher profitability.

Adjusted Net Income (Loss)

Adjusted net income followed a similar pattern to reported net income: a significant initial loss transforming into consistent positive results. Although the amounts differ slightly from reported figures, the trend confirms an underlying profitability improvement when excluding specific adjustments, reinforcing the overall positive performance trend.

Adjusted Revenues

Adjusted revenues consistently track closely to the reported revenues, also showing steady growth over time. Minor differences compared to reported figures suggest a stable revenue base with few significant non-recurring items affecting top-line performance.

Adjusted Net Profit Margin

The adjusted net profit margin also mirrors the pattern observed in the reported margin, climbing from a negative starting point to a significantly positive margin by the end of the period. Variability is present but the trend is fundamentally upward, underscoring the company's improving profitability considering adjustments.

Overall, the data reveals a strong recovery from initial losses to steadily increasing revenues and robust profitability growth. The company’s financial health appears to improve substantially, marked by enhanced margins and growing net income, both on reported and adjusted bases, indicative of effective management and sound strategic execution over the course of the periods analyzed.

The financial performance over the observed periods demonstrates a notable improvement in profitability and equity returns for the company. Initially, the net income attributable to the company showed a significant loss, but subsequent periods reflect consistent positive earnings with a marked increase by the final year under review.

The total shareholder's equity exhibits a steady upward trend, indicating growth in the company’s net assets. This increase in equity accompanies the rise in net income, suggesting retained earnings contribute to strengthening the equity base.

The reported return on equity (ROE) mirrors the trajectory of net income and equity changes, starting from a negative position and gradually advancing to a substantially higher positive return. This progression highlights an improving capacity to generate profits from shareholders' investments.

When adjustments are made to net income and equity, the adjusted figures similarly indicate enhanced profitability and equity values. The adjusted net income, after a considerable initial loss, consistently improves across subsequent years, paralleling the adjusted equity growth.

The adjusted return on equity, while reflective of the adjusted figures, follows a similar pattern to reported ROE, moving from negative to increasingly robust positive returns. The adjusted ROE values provide a slightly higher perspective on profitability relative to the reported ROE, suggesting that adjustments may account for non-recurring or exceptional items impacting the raw figures.

Net Income Trends

Shift from significant losses to increasing profit levels, culminating in a substantial increase in the latest period.

Shareholder's Equity

Consistent growth in total equity, implying a stronger financial foundation and possibly retained earnings accumulation.

Reported ROE

Transition from negative to improving positive returns, indicating enhanced efficiency in generating shareholder value.

Adjusted Net Income and Equity

Similar upward trends as reported values but adjusted figures tend to show higher profitability and equity levels.

Adjusted ROE

Reflects improved profitability with a more optimistic return measure than reported ROE, moving from negative to significantly positive figures.

Overall, the data illustrates a recovery from a period of financial difficulty to one of sustained profitability growth and solid equity enhancement, reflecting positively on the company’s financial health and operational performance over the periods reviewed.

The analysis of the financial data over the indicated periods reveals several notable trends in the company's performance and asset base.

Net Income (Loss) Attributable to the Company

The net income showed a significant turnaround from a loss of approximately $2.9 billion in 2020 to positive earnings thereafter. There was steady growth from 2021 through 2022, followed by a slight decline in 2023. Subsequently, a strong upward trend is observed in 2024 and a substantial increase reaching over $12 billion in 2025, indicating improving profitability and operational efficiency.

Total Assets

Total assets remained relatively stable across the periods, fluctuating slightly around the $200 billion mark. The asset base peaked marginally in 2023 before experiencing a slight decline in 2024 and 2025. This suggests consistency in the company's asset management, with no major asset acquisitions or disposals during the timeline.

Reported Return on Assets (ROA)

Reported ROA transitioned from a negative value in 2020 to positive figures in the following years. It exhibited a gradual increase, reaching a peak of 6.28% in 2025. This reflects enhanced efficiency in generating profit from the company's asset base, particularly notable in the latter years.

Adjusted Net Income (Loss)

Adjusted net income followed a pattern similar to the reported net income. Starting with a loss of nearly $5 billion in 2020, it rose significantly in subsequent years. After some variability in 2023, adjusted net income showed marked recovery and growth, culminating in over $11.5 billion in 2025, indicating adjustments positively impact the depiction of ongoing profitability.

Adjusted Total Assets

The adjusted total assets mirror the trend in reported total assets with minor variations. The values remain consistent over the years, with a slight dip in 2024 and 2025, signifying stable asset valuation and minimal adjustments in asset accounting policies.

Adjusted Return on Assets (ROA)

Adjusted ROA also moved from negative territory in 2020 to improvement over time, peaking at 5.87% in 2025. The fluctuations in intermediate years suggest variability in earnings quality, but the overall trend aligns with improved profitability and asset utilization.

In summary, the company has demonstrated a strong recovery from initial losses to sustained profitability, with improving returns on assets. Despite relatively stable asset levels, profitability metrics reflect enhanced efficiency and effective financial management over the period analyzed.