Walt Disney Co. (NYSE:DIS)

The annual financial data indicates notable improvements in the profitability and efficiency metrics over the analyzed periods.

Return on Assets (ROA)

The ROA has exhibited a consistent upward trend from a negative value of -1.42% in 2020 to a significantly positive 6.28% in 2025. This progression suggests an increasing effectiveness in utilizing assets to generate net income, with an especially marked improvement in the most recent years.

Financial Leverage

Financial leverage, measured as a ratio, shows a gradual decline from 2.41 in 2020 down to 1.80 in 2025. This decreasing trend signifies a reduction in dependency on debt financing relative to equity, implying a potential strengthening of the company’s capital structure and reduced financial risk.

Return on Equity (ROE)

The ROE follows a pattern similar to ROA, moving from a negative -3.43% in 2020 to a robust 11.29% in 2025. The upward trajectory points to an enhanced ability of the company to generate profits from shareholders' equity, with notable acceleration in returns during the later years. This improved profitability, combined with declining leverage, suggests more efficient equity utilization and stronger overall financial performance.

In summary, the company has demonstrated improving profitability and asset efficiency over the five-year span while concurrently reducing its financial leverage. These trends collectively reflect a positive shift in operational performance and capital management, indicating enhanced financial stability and value creation for shareholders.

Net Profit Margin

The net profit margin demonstrates a notable improvement over the observed periods. Initially, a negative margin of -4.38% is recorded, indicating losses. This shifts to positive territory by the following year, with a steady increase from 2.96% to 5.44% over four years. The margin then experiences a significant jump to 13.14% in the final period, suggesting enhanced profitability and effective cost management.

Asset Turnover

The asset turnover ratio shows a consistent upward trend, rising from 0.32 to 0.48. This increase indicates improving efficiency in using assets to generate revenue, with a particularly steady growth between the third and last periods, which reflects better operational performance or asset utilization.

Financial Leverage

Financial leverage declines gradually from 2.41 to 1.8 over the timeline. This downward trend points to a reduction in the use of debt relative to equity, signaling a potentially more conservative capital structure or improved equity base. Such a shift may reduce financial risk and interest obligations.

Return on Equity (ROE)

ROE follows a pattern similar to net profit margin, beginning with a negative figure at -3.43%, moving into positive values, and ultimately reaching 11.29% in the last reported year. This progression suggests increasing returns to shareholders, driven by better profitability and more efficient asset and equity deployment.

Tax Burden

The tax burden ratio shows a notable decline from 0.99 in 2021 to a low of approximately 0.63-0.64 in the 2022 and 2023 periods. Afterwards, there is a recovery with an increase to 0.73 in 2024 followed by a sharp rise to 1.13 in 2025, indicating significant fluctuations in effective tax impact on earnings.

Interest Burden

This ratio experienced an improvement from 0.57 in 2021 to a peak of 0.76 in 2022, which reflects a temporary reduction in interest expense burden. It then decreased to 0.65 in 2023 before gradually increasing in the subsequent years to 0.77 and 0.86 in 2024 and 2025, respectively, showing some variability but trending upward in interest cost efficiency.

EBIT Margin

The EBIT margin demonstrated a strong positive trend. After recording a negative margin in 2020 (-0.79%), it increased significantly to 5.29% in 2021 and continued rising steadily to reach 13.54% by 2025. This upward trajectory indicates enhanced operational profitability over the period.

Asset Turnover

Asset turnover showed consistent improvement, rising from 0.32 in 2020 to 0.48 in 2025. This suggests increasing efficiency in utilizing assets to generate sales or revenue throughout the span of the data.

Financial Leverage

Financial leverage declined gradually from 2.41 in 2020 to 1.8 in 2025, indicating a reduction in the use of debt or liabilities relative to equity. This trend points to a conservative financial structure becoming more pronounced over time.

Return on Equity (ROE)

The ROE initially was negative (-3.43%) in 2020, turned positive in 2021 (2.25%), and maintained modest growth with some fluctuations through 2024. Notably, ROE surged to 11.29% in 2025, reflecting substantially improved profitability relative to shareholder equity.

Net Profit Margin

The net profit margin exhibited a significant positive trend over the observed periods. Initially, the metric was negative at -4.38% but transitioned to positive territory by the following year, reaching 2.96%. Gradual improvements continued with minor fluctuations, ultimately culminating in a substantial rise to 13.14% in the most recent period. This upward trajectory indicates an enhanced ability to convert revenue into actual profit over time.

Asset Turnover

Asset turnover showed a steady increase across the periods. Starting at 0.32, it rose incrementally each year, reaching 0.48 in the latest period. This suggests improving efficiency in utilizing assets to generate revenue, reflecting enhanced operational effectiveness or asset management strategies.

Return on Assets (ROA)

Return on assets followed a pattern similar to net profit margin, starting with a negative value of -1.42% and moving steadily upwards to 6.28% by the end of the timeline. Despite occasional minor declines, the overall trend was positive, highlighting improved profitability relative to the total assets and signifying better overall asset utilization and profitability.

Tax Burden

The tax burden ratio exhibits considerable fluctuation over the observed periods. Starting at a high of 0.99 in 2021, it declines sharply to approximately 0.63-0.64 in 2022 and 2023, followed by a modest recovery to 0.73 in 2024, and then a notable increase to 1.13 in 2025. This indicates variability in the company's effective tax rate or tax expenses relative to pretax income, with the latest figure surpassing previous years, potentially signaling changes in tax strategy or taxable income composition.

Interest Burden

The interest burden ratio reveals a general upward trend from 0.57 in 2021 to 0.86 in 2025, with some fluctuations in intermediate years. This rise suggests an improvement in the company's operating earnings before interest expense relative to earnings before taxes, indicating reduced impact of interest expenses or improved borrowing cost management over time.

EBIT Margin

The EBIT margin demonstrates a strong positive trend. From a negative margin of -0.79% in 2020, it increases significantly to 5.29% in 2021 and continues to improve through the years, reaching 13.54% in 2025. This upward progression reflects enhanced operational profitability, signaling more effective cost management and/or revenue growth contributing to the company's core earnings capacity.

Asset Turnover

The asset turnover ratio shows a steady increase from 0.32 in 2020 to 0.48 in 2025. This trend indicates improving efficiency in using assets to generate revenues. The gradual rise suggests that the company is becoming more effective in asset utilization over time.

Return on Assets (ROA)

The ROA mirrors some preceding trends and portrays marked improvement. Starting negative at -1.42% in 2020, it turns positive at 0.98% in 2021 and climbs steadily, culminating at 6.28% in 2025. This indicates a strengthening ability to generate net income from total assets, reflecting overall operational and financial enhancements. The increasing ROA is consistent with rising EBIT margin and asset turnover, underscoring improved profitability and asset efficiency.

Tax Burden

The tax burden ratio exhibited a fluctuating pattern over the analyzed periods. After being absent in the initial period, it showed a significant drop from 0.99 to 0.64 between 2021 and 2022, remaining relatively stable around 0.63 in 2023. Subsequently, it experienced an increase to 0.73 in 2024 and then rose sharply to 1.13 in 2025. This trend suggests variable tax expense impacts relative to pre-tax earnings, with a notable increase in the latest period.

Interest Burden

The interest burden ratio demonstrated some volatility with a generally improving trend. Starting at 0.57 in 2021, it increased to 0.76 in 2022, indicating higher earnings before tax relative to earnings before interest and tax expenses. However, it decreased to 0.65 in 2023, then rose again to 0.77 in 2024 and further to 0.86 in 2025. Overall, this suggests that the company has moderately improved its ability to manage interest expenses relative to operating earnings.

EBIT Margin

The EBIT margin showed a marked improvement across the years. Initially negative at -0.79% in 2020, it turned positive at 5.29% in 2021 and steadily increased to 7.77% in 2022. Although it slightly declined to 6.42% in 2023, the margin rebounded significantly to 9.67% in 2024 and peaked at 13.54% in 2025. This progression highlights a substantial enhancement in operational profitability over the period.

Net Profit Margin

The net profit margin mirrored the improvement seen in EBIT margin but with some variation. It started with a considerable loss of -4.38% in 2020 but recovered to 2.96% in 2021. The margin increased further to 3.8% in 2022. It then experienced a decline to 2.65% in 2023, followed by a significant rise to 5.44% in 2024 and a pronounced surge to 13.14% in 2025. These changes indicate an overall recovery and strengthening of bottom-line profitability, culminating in a very strong margin in the most recent period.