Stock Analysis on Net
Stock Analysis on Net

Walt Disney Co. (NYSE:DIS)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Walt Disney Co., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2023 2.37% = 1.15% × 2.07
Oct 1, 2022 3.31% = 1.54% × 2.14
Oct 2, 2021 2.25% = 0.98% × 2.30
Oct 3, 2020 -3.43% = -1.42% × 2.41
Sep 28, 2019 12.44% = 5.70% × 2.18
Sep 29, 2018 25.83% = 12.78% × 2.02

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Walt Disney Co., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2023 2.37% = 2.65% × 0.43 × 2.07
Oct 1, 2022 3.31% = 3.80% × 0.41 × 2.14
Oct 2, 2021 2.25% = 2.96% × 0.33 × 2.30
Oct 3, 2020 -3.43% = -4.38% × 0.32 × 2.41
Sep 28, 2019 12.44% = 15.89% × 0.36 × 2.18
Sep 29, 2018 25.83% = 21.20% × 0.60 × 2.02

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Walt Disney Co., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2023 2.37% = 0.63 × 0.65 × 6.42% × 0.43 × 2.07
Oct 1, 2022 3.31% = 0.64 × 0.76 × 7.77% × 0.41 × 2.14
Oct 2, 2021 2.25% = 0.99 × 0.57 × 5.29% × 0.33 × 2.30
Oct 3, 2020 -3.43% = — × — × -0.79% × 0.32 × 2.41
Sep 28, 2019 12.44% = 0.78 × 0.92 × 22.04% × 0.36 × 2.18
Sep 29, 2018 25.83% = 0.88 × 0.95 × 25.14% × 0.60 × 2.02

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

The primary reason for the decrease in return on equity ratio (ROE) over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Walt Disney Co., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2023 1.15% = 2.65% × 0.43
Oct 1, 2022 1.54% = 3.80% × 0.41
Oct 2, 2021 0.98% = 2.96% × 0.33
Oct 3, 2020 -1.42% = -4.38% × 0.32
Sep 28, 2019 5.70% = 15.89% × 0.36
Sep 29, 2018 12.78% = 21.20% × 0.60

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Walt Disney Co., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2023 1.15% = 0.63 × 0.65 × 6.42% × 0.43
Oct 1, 2022 1.54% = 0.64 × 0.76 × 7.77% × 0.41
Oct 2, 2021 0.98% = 0.99 × 0.57 × 5.29% × 0.33
Oct 3, 2020 -1.42% = — × — × -0.79% × 0.32
Sep 28, 2019 5.70% = 0.78 × 0.92 × 22.04% × 0.36
Sep 29, 2018 12.78% = 0.88 × 0.95 × 25.14% × 0.60

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

The primary reason for the decrease in return on assets ratio (ROA) over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Walt Disney Co., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2023 2.65% = 0.63 × 0.65 × 6.42%
Oct 1, 2022 3.80% = 0.64 × 0.76 × 7.77%
Oct 2, 2021 2.96% = 0.99 × 0.57 × 5.29%
Oct 3, 2020 -4.38% = — × — × -0.79%
Sep 28, 2019 15.89% = 0.78 × 0.92 × 22.04%
Sep 29, 2018 21.20% = 0.88 × 0.95 × 25.14%

Based on: 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).

The primary reason for the decrease in net profit margin ratio over 2023 year is the decrease in operating profitability measured by EBIT margin ratio.