Walt Disney Co. (NYSE:DIS)

The financial ratios presented reveal several notable trends over the six-year period. The company's efficiency, liquidity, leverage, profitability, and returns have shown varying trajectories.

Asset Turnover

The reported total asset turnover ratio gradually increased from 0.36 in 2019 to 0.47 in 2024, indicating improved efficiency in utilizing assets to generate revenue. The adjusted total asset turnover follows a nearly identical pattern, confirming this positive trend in asset utilization over time.

Current Ratio (Liquidity)

The reported current ratio experienced an increase from 0.9 in 2019 to a peak of 1.32 in 2020, suggesting strengthened short-term liquidity at that time. However, it subsequently declined, ending at 0.73 in 2024, which may indicate a tightening of liquidity or increased current liabilities relative to current assets. The adjusted current ratio presents a similar evolution, peaking higher at 1.56 in 2020 and also declining to 0.87 by 2024, corroborating the observation of diminishing liquidity protections.

Debt Ratios (Leverage)

The reported debt to equity ratio rose from 0.53 in 2019 to 0.71 in 2020, then declined steadily to 0.46 by 2024, reflecting a reduction in leverage relative to equity after an initial increase. The adjusted debt to equity ratio shows a similar pattern, decreasing from a peak of 0.57 in 2020 to 0.42 in 2024. The debt to capital ratios, both reported and adjusted, declined moderately throughout the period, indicating a gradual deleveraging trend within the company’s capital structure.

Financial Leverage

Financial leverage measured by the reported ratio decreased from 2.18 in 2019 to 1.95 in 2024, reflecting reduced dependency on debt financing. The adjusted financial leverage generally trended downward from 1.7 in 2019 to a low of 1.62 in 2023, before increasing slightly to 1.66 in 2024, suggesting a relatively stable but cautious leverage stance.

Profitability Metrics

The reported net profit margin experienced significant volatility, with a high of 15.89% in 2019 collapsing to -4.38% in 2020, then recovering slowly to 5.44% by 2024. The adjusted net profit margin followed a similar volatile trajectory but with more pronounced swings, including a low point of -7.61% in 2020 and a high of 8.88% in 2022. These fluctuations indicate operational challenges and partial recovery over the period.

Return on Equity (ROE)

The reported ROE also exhibited sharp declines in 2020 to negative territory (-3.43%), before gradually improving to 4.94% by 2024. Adjusted ROE mirrored this pattern with a more pronounced negative value in 2020 (-4.51%) and a peak in 2022 (6.11%), followed by decreases that suggest uneven but overall modest improvement in returns to shareholders.

Return on Assets (ROA)

Reported ROA declined to negative levels in 2020 (-1.42%) but progressively increased thereafter to 2.53% in 2024, indicating a gradual enhancement in asset profitability. The adjusted ROA showed a similar trend, with larger negative dips in 2020 (-2.45%) and a higher peak of 3.69% in 2022 before settling at 2.35% in 2024, reflecting modest improvements in operational efficiency and asset utilization.

In summary, the data reveal initial challenges marked by reduced profitability and liquidity in 2020, followed by gradual recovery in efficiency and returns. Leverage ratios indicate a cautious reduction in debt usage over time, while asset turnover and profitability metrics suggest the company is improving its operational performance, though full recovery to earlier profitability levels remains incomplete as of 2024.

The financial data indicates several key trends in operational performance and asset utilization over the analyzed periods.

Revenues

Revenues showed a general upward trend, increasing from 69,570 million US$ in the period ending September 2019 to 91,361 million US$ in the period ending September 2024. Notably, revenues declined in the period ending October 2020 but rebounded steadily in subsequent years, reaching the highest value in the latest period.

Total Assets

Total assets exhibited relatively minor fluctuations throughout the observed timeframe. There was a peak around the 2020 and 2021 periods with assets slightly above 203 billion US$, followed by a marginal decline in the latest period ending September 2024, down to approximately 196 billion US$. This suggests a degree of asset stability despite revenue growth.

Reported Total Asset Turnover

The reported total asset turnover ratio, which measures efficiency in using assets to generate revenue, decreased from 0.36 in 2019 to 0.32 in 2020, reflecting reduced efficiency possibly linked to the revenue dip. However, this ratio consistently improved thereafter, reaching 0.47 in 2024, indicating enhanced asset utilization aligned with the increasing revenue trend.

Adjusted Revenues and Adjusted Total Assets

The adjusted revenue figures largely mirror the reported revenues, with a slight difference in values but showing the same upward trend from approximately 70,704 million US$ in 2019 to 91,261 million US$ in 2024. Adjusted total assets also remain stable and close to reported total assets, ranging near 195 to 205 billion US$ across periods, with a slight decline in the final year.

Adjusted Total Asset Turnover

Adjusted total asset turnover ratios closely correspond to the reported figures, starting at 0.36 in 2019, dipping in 2020 to 0.32, then progressively increasing to 0.47 by 2024. This consistent improvement underscores an enhanced capacity to utilize adjusted asset bases in generating revenue.

In summary, the data indicates a resilient and improving performance in revenue generation over the years, accompanied by relatively stable asset levels. The increasing asset turnover ratios suggest a strengthening efficiency in the use of assets, signaling effective management and operational improvements during the latter periods.

The annual financial data reveals fluctuating trends in the liquidity position over the examined periods. Both current assets and current liabilities have experienced variations, which directly impacted the reported and adjusted current ratios.

Current Assets

Current assets rose significantly from 28,124 million US dollars in 2019 to a peak of 35,251 million in 2020, reflecting a substantial increase in short-term resources. However, after 2020, there was a general decline with some fluctuation, particularly dropping sharply to 25,241 million in 2024, the lowest in the reported periods.

Current Liabilities

Current liabilities showed a decrease from 31,341 million in 2019 to 26,628 million in 2020, suggesting a reduction in short-term obligations. Nonetheless, liabilities began to rise again in subsequent years, reaching a high of 34,599 million in 2024, the largest value recorded across the periods.

Reported Current Ratio

The reported current ratio improved notably from 0.9 in 2019 to a peak of 1.32 in 2020, indicating enhanced liquidity at the start of the observed timeline. Afterward, the ratio declined steadily, closing at 0.73 in 2024, which reflects a weaker ability to cover short-term liabilities with current assets as of the most recent year.

Adjusted Current Assets

The adjusted current assets closely follow the trend of reported current assets but are generally slightly higher, indicating some reclassification or adjustments to asset values. These also peaked in 2020 at 35,677 million and then decreased, with a notable dip in 2024 to 25,324 million.

Adjusted Current Liabilities

Adjusted current liabilities are consistently lower than reported liabilities, suggesting certain liabilities were excluded or reclassified for this adjustment. From 27,291 million in 2019, these liabilities decreased significantly in 2020 to 22,940 million but rose again to 29,012 million by 2024.

Adjusted Current Ratio

The adjusted current ratio shows a stronger liquidity position than the reported ratio throughout the periods, starting at 1.04 in 2019 and rising to 1.56 in 2020. It remained above 1.0 in most years until a decline to 0.87 in 2024, indicating that even after adjustments, liquidity has weakened in the latest period.

Overall, the analysis indicates a peak in liquidity around 2020, with current assets at their highest and liabilities at a relative low, leading to the strongest current ratios in the period examined. Subsequently, there is a declining trend in liquidity metrics through 2024, marked by decreasing assets and rising liabilities, which may pose challenges for the short-term financial flexibility unless corrective measures are taken.

The financial data reveals several notable trends regarding the company's debt and equity structure over the examined six-year period.

Total Debt

There was a significant increase in total debt from 2019 to 2020, rising from 47,137 million US dollars to 58,936 million US dollars. Following this peak, total debt gradually decreased each year, reaching 46,005 million US dollars by 2024, which is slightly below the 2019 level.

Total Shareholder’s Equity

Equity decreased from 88,877 million US dollars in 2019 to a low of 83,583 million US dollars in 2020. Subsequently, it showed a steady upward trend, increasing every year to reach 100,696 million US dollars by 2024, surpassing the initial 2019 level.

Reported Debt to Equity Ratio

This ratio spiked from 0.53 in 2019 to 0.71 in 2020, reflecting the sharp increase in debt relative to equity during that year. From 2020 onwards, the ratio declined consistently each year, falling to 0.46 by 2024, which indicates a reduction in leverage and a stronger equity base relative to debt.

Adjusted Total Debt and Adjusted Total Equity

Adjusted total debt followed a pattern similar to reported total debt, peaking in 2020 at 62,323 million US dollars before decreasing to 49,517 million US dollars in 2024. Adjusted total equity also dipped in 2020 to 109,455 million US dollars from 115,984 million US dollars in 2019 but then increased steadily through 2023, reaching 126,259 million US dollars before a decline to 117,672 million US dollars in 2024.

Adjusted Debt to Equity Ratio

This ratio rose from 0.44 in 2019 to 0.57 in 2020, mirroring the increase seen in the reported ratio. After 2020, it declined to 0.40 by 2023, indicating improved debt management, but there was a slight increase to 0.42 in 2024, suggesting a modest rise in leverage in the most recent year.

Overall, the data indicates that the company experienced increased leverage and a reduction in equity in 2020, likely reflecting external challenges during that period. Since then, the company has made consistent progress in reducing debt levels relative to equity, as evidenced by the declining debt-to-equity ratios. The upward trend in shareholder’s equity highlights strengthening financial resilience, although the slight uptick in adjusted leverage in the latest year warrants monitoring to ensure continued stability.

Total Debt

The total debt exhibited an initial increase from 47,137 million USD in 2019 to a peak of 58,936 million USD in 2020. Subsequently, the debt steadily decreased each year, reaching 46,005 million USD by 2024, which is slightly lower than the starting level in 2019.

Total Capital

Total capital showed a consistent upward trend from 136,014 million USD in 2019 to 146,701 million USD in 2024. The growth was gradual, with no significant volatility, indicating stable expansion of the company’s capital base over the analyzed period.

Reported Debt to Capital Ratio

This ratio increased from 0.35 in 2019 to 0.41 in 2020, reflecting the rise in debt relative to capital during that year. From 2021 onwards, the ratio gradually decreased each year to 0.31 by 2024, indicating a strengthening capital structure and reduced reliance on debt financing in relation to total capital.

Adjusted Total Debt

Adjusted total debt mirrored the pattern of reported total debt, increasing sharply from 50,841 million USD in 2019 to 62,323 million USD in 2020. Thereafter, it declined annually to 49,517 million USD by 2024, remaining above the 2019 level but showing a declining trend after the 2020 peak.

Adjusted Total Capital

Adjusted total capital rose steadily from 166,825 million USD in 2019 to a high of 176,931 million USD in 2023 before experiencing a notable decline to 167,189 million USD in 2024. This represents a peak and slight contraction within the period, although the 2024 figure remains close to that of 2019.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio increased from 0.30 in 2019 to 0.36 in 2020, reflecting higher leverage. Following this, it declined progressively to 0.29 in 2023, before a marginal increase to 0.30 in 2024. Overall, the ratio reveals a reduction in leverage post-2020 with a slight uptick at the end of the period, stabilizing around the initial 2019 level.

Total Assets

Total assets increased moderately from 193,984 million US dollars in 2019 to a peak of 205,579 million in 2023. However, in 2024, there was a noticeable decline to 196,219 million, nearly returning to the 2019 level. This indicates a general asset base expansion over the initial years followed by a contraction or revaluation in the latest period.

Total Disney Shareholder’s Equity

Shareholder’s equity demonstrated a fluctuating but overall upward trend, starting at 88,877 million US dollars in 2019, dipping slightly in 2020 to 83,583 million, then recovering and growing steadily to reach 100,696 million by 2024. This rise suggests improved retained earnings or capital injections over time, contributing to strengthened equity.

Reported Financial Leverage

The reported financial leverage ratio started at 2.18 in 2019, increased to a peak of 2.41 in 2020, and then consistently declined each year, reaching 1.95 in 2024. This reduction implies a decreasing reliance on debt or liabilities relative to equity, indicating improved financial stability or deleveraging efforts.

Adjusted Total Assets

Adjusted total assets followed a similar pattern to total assets, rising from 197,573 million in 2019 to a high of 205,023 million in 2023, then falling to 195,647 million in 2024. The adjusted figures reinforce the observation of asset growth through 2023 with a subsequent downward adjustment or asset reduction in the latest year.

Adjusted Total Equity

Adjusted total equity increased substantially from 115,984 million in 2019 to 126,259 million in 2023, peaking in 2023, followed by a decrease to 117,672 million in 2024. This pattern indicates general equity growth tempered by a drop in the latest period, possibly reflecting accounting adjustments or changes in comprehensive income components.

Adjusted Financial Leverage

Adjusted financial leverage rose from 1.7 in 2019 to 1.84 in 2020, then gradually declined to 1.62 in 2023 before a slight increase to 1.66 in 2024. The overall trend demonstrates a reduction in leverage over the period with a minor reversal in the last year, suggesting a shift in the capital structure dynamics towards a marginally higher leverage position recently.

The financial data presents several notable trends across the analyzed periods. Revenues have shown a generally positive trajectory, increasing steadily from US$69,570 million in 2019 to US$91,361 million in 2024. This upward movement indicates growth in the company's operational performance and market presence over the years.

Net income attributable to the company exhibits significant volatility. Starting at US$11,054 million in 2019, it experienced a sharp decline to a loss of US$2,864 million in 2020, followed by a gradual recovery with fluctuations, reaching US$4,972 million in 2024. This pattern suggests that the company faced considerable challenges around 2020, likely reflecting external economic or operational disruptions, but has made progress in returning to profitability.

The reported net profit margin mirrors this volatility, dropping from a healthy 15.89% in 2019 to a negative 4.38% in 2020, then recovering modestly to 5.44% by 2024. The margin's trajectory confirms the impact of adverse conditions during 2020 and a gradual restoration of profitability thereafter.

Adjusted figures, which likely exclude certain irregular or non-recurring items, follow a similar trend. Adjusted net income fell from US$11,963 million in 2019 to a loss of US$4,940 million in 2020, then rebounded to US$4,595 million in 2024. Adjusted revenues also increased from US$70,704 million in 2019 to US$91,261 million in 2024, closely tracking the reported revenue trend.

The adjusted net profit margin shows a more pronounced recovery compared to the reported margin, dipping to negative 7.61% in 2020 but climbing to 8.88% in 2022 before settling at 5.04% in 2024. This suggests that when excluding exceptional items, the company's profitability improved more substantially post-2020, reflecting effective management of core business activities.

Overall, the data reveals a period of significant disruption in 2020, with marked declines in income and profit margins, followed by a recovery phase characterized by increasing revenues and improving profitability metrics. The gap between reported and adjusted figures highlights the influence of extraordinary items, particularly during the downturn period.

Revenue Trends

Consistent growth from US$69.6 billion in 2019 to US$91.4 billion in 2024 indicates strong top-line expansion.

Net Income Variability

Sharp decline to negative territory in 2020 followed by gradual recovery to nearly half the 2019 peak by 2024.

Profit Margin Dynamics

Margins suffered significantly in 2020 but rebounded moderately; adjusted margins show a stronger recovery pattern.

Adjusted Financials

Reflect similar trends to reported figures but illustrate stronger profitability after removing exceptional items.

Insights

The data imply resilience and adaptive strategies post-2020 disruption, with improved operational efficiency and revenue growth underpinning the recovery.

Net Income (Loss) Attributable to The Walt Disney Company

The net income demonstrates significant volatility over the analyzed periods. It starts at a strong positive level of $11,054 million in 2019, then declines sharply to a loss of $2,864 million in 2020. Following this downturn, net income recovers gradually, reaching $1,995 million in 2021 and increasing further to $3,145 million in 2022. However, in 2023, it decreases again to $2,354 million before rising notably to $4,972 million in 2024. The pattern suggests exposure to cyclical or external impacts affecting profitability, with a notable rebound in the final year.

Total Disney Shareholder’s Equity

The total shareholder’s equity shows a generally upward trend throughout the period, reflecting growth and retained earnings accumulation despite fluctuations in profitability. The equity starts at $88,877 million in 2019, dips slightly to $83,583 million in 2020, and then increases steadily, reaching $100,696 million by 2024. This trend indicates a strengthening capital base over time, with a temporary contraction in 2020 likely tied to the decreased earnings that year.

Reported Return on Equity (ROE)

The reported ROE exhibits considerable variation aligned with net income changes. It begins at a relatively robust 12.44% in 2019 but turns negative at -3.43% in 2020, mirroring the loss incurred. Subsequently, it recovers gradually to 2.25% in 2021 and peaks at 3.31% in 2022 before declining to 2.37% in 2023. By 2024, ROE improves again to 4.94%. Despite recovery signs, ROE remains below the initial 2019 figure, indicating moderated profitability relative to equity employed.

Adjusted Net Income (Loss)

Adjusted net income reflects a similar but more pronounced volatility compared to reported net income. It starts at $11,963 million in 2019 and records a larger loss of $4,940 million in 2020. Following this, it rebounds strongly to $3,222 million in 2021 and further to $7,504 million in 2022, showing a substantial recovery. However, it declines sharply to $2,830 million in 2023 before rising again to $4,595 million in 2024. These fluctuations highlight significant adjustments impacting profitability, possibly from one-time or non-recurring items.

Adjusted Total Equity

The adjusted total equity demonstrates an overall increasing trajectory, ascending from $115,984 million in 2019 to a peak of $126,259 million in 2023 before dipping to $117,672 million in 2024. This trend generally suggests accumulation of comprehensive income and capital, with a minor decline in the final year potentially indicating adjustments or distributions affecting equity levels.

Adjusted Return on Equity (ROE)

The adjusted ROE follows a pattern consistent with adjusted net income. It begins at 10.31% in 2019, drops to -4.51% in 2020, and rises steadily to 6.11% in 2022, indicating operational recovery and better adjusted profitability. However, it falls again to 2.24% in 2023 before recovering slightly to 3.9% in 2024. While the adjusted ROE shows improvement compared to the reported ROE in certain years, it remains volatile and below pre-2020 levels overall.

Summary Insights

The data reveals a period marked by volatility in profitability and returns on equity, primarily influenced by significant losses in 2020 followed by a gradual but inconsistent recovery in subsequent years. Equity levels, both reported and adjusted, generally trend upwards, suggesting strengthening capitalization despite profit fluctuations. Adjusted figures demonstrate more pronounced swings, implying notable impacts from one-time or non-operational factors on earnings. Overall, while recent years show improvement, profitability metrics have yet to return consistently to pre-2019 levels.

The financial data reveals notable fluctuations in profitability and asset utilization across the periods analyzed. Net income attributable to the company experienced a significant decline in fiscal year 2020, reflecting a substantial loss of $2,864 million, which contrasts sharply with the positive results reported in the preceding and subsequent years. This result was followed by a recovery phase, with net income returning to positive territory in fiscal year 2021 and showing improvement through to fiscal year 2024, culminating in a value of $4,972 million. The adjusted net income exhibits a similar pattern but indicates a more pronounced loss in 2020 at $4,940 million and a stronger rebound in subsequent years, peaking at $7,504 million in fiscal year 2022 before moderating to $4,595 million in the latest period.

Asset base

Total assets remained relatively stable over the six-year span, with marginal increases until 2023, reaching $205,579 million, before decreasing to $196,219 million in 2024. Adjusted total assets followed a parallel trend, peaking slightly earlier and similarly declining in the most recent year.

Return on assets (ROA)

Reported ROA values illustrate the impact of the income fluctuations on asset efficiency. The metric dropped from a solid 5.7% in 2019 to a negative return of -1.42% in 2020, consistent with the net loss. ROA improved steadily afterward, stabilizing around low positive rates and reaching 2.53% by 2024. The adjusted ROA showed a deeper negative dip (-2.45%) in 2020 and a sharper recovery to a peak of 3.69% in 2022, although it then declined to 2.35% in the latest year.

Overall, the data signals a challenging year in 2020, likely influenced by extraordinary circumstances affecting profitability. This was followed by a recovery period marked by cautious but positive growth in net income and improved asset utilization. The peak in adjusted profitability metrics in 2022 suggests some one-time factors benefiting that year, given the reduction observed in 2023 and 2024. The slight decrease in total and adjusted assets in the latest fiscal year may warrant further investigation to understand potential impacts on future operating performance.