Walt Disney Co. (NYSE:DIS)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates a slight downward trend from 2.19 in 2019 to 2.02 in 2020, followed by a minor increase to 2.05 in 2021. A significant improvement is observed in 2022 and 2023, reaching 2.44 and 2.52 respectively, before experiencing a marginal decline to 2.45 in 2024. This pattern indicates a recovery and enhancement in the efficiency of fixed asset utilization over the most recent years after an initial dip.

Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset

When including operating lease and right-of-use assets, the turnover starts at 2.19 in 2019 but falls more sharply to 1.81 in 2020 and then slightly increases to 1.83 in 2021. From 2022 onwards, there is a notable rise to 2.18 and 2.25 in both 2023 and 2024, maintaining stability at the higher level. This suggests an improved utilization of assets when expanded to include leased assets, aligning with the general upward trend seen in net fixed asset turnover alone.

Total Asset Turnover

The total asset turnover ratio shows a declining trend from 0.36 in 2019 to 0.32 in 2020, followed by a modest increase to 0.33 in 2021. From 2022 onwards, there is a consistent upward trajectory, increasing to 0.41, then 0.43, and further to 0.47 in 2024. This pattern indicates an improved efficiency in the generation of revenue from total assets in recent years after the initial decline.

Equity Turnover

The equity turnover ratio remains relatively stable between 0.78 and 0.76 from 2019 to 2021. Starting in 2022, the ratio increases steadily to 0.87, then 0.9 in 2023, and finally 0.91 in 2024. This consistent improvement suggests enhanced effectiveness in utilizing shareholders' equity to generate revenue over the latest period.

Revenues

The revenue figures demonstrate a fluctuating but overall upward trend over the analyzed periods. Starting at approximately $69.6 billion in 2019, a decline occurred in 2020 to around $65.4 billion, likely influenced by adverse external factors during that year. From 2021 onwards, revenue progressively increased, reaching about $91.4 billion by 2024. The most significant year-over-year growth is observed between 2021 and 2022, with revenues rising from $67.4 billion to $82.7 billion, indicating a strong recovery phase followed by steady growth in subsequent years.

Parks, resorts and other property, net, including finance lease right-of-use assets

This asset category exhibits a consistent and moderate growth trajectory throughout the period. Beginning at approximately $31.8 billion in 2019, the net value steadily increases each year, reaching about $37.3 billion by 2024. The incremental annual growth indicates ongoing investments or appreciation in the value of these properties, contributing to the company's asset base expansion within this segment.

Net fixed asset turnover

The net fixed asset turnover ratio decreases from 2.19 in 2019 to 2.02 in 2020, suggesting reduced efficiency in utilizing fixed assets to generate revenue during that period. Subsequently, the ratio slightly improves to 2.05 in 2021 before rising sharply to 2.44 in 2022 and peaking at 2.52 in 2023. A minor decline to 2.45 occurs in 2024. Overall, this pattern reflects challenges in asset utilization linked to the 2020 period, followed by substantial recovery and improved effectiveness in generating sales from net fixed assets in the following years.

Revenue Trends

Revenues exhibited a decline from 69,570 million US dollars in 2019 to 65,388 million US dollars in 2020, likely reflecting economic disruptions during that period. Following this dip, revenues showed a consistent upward trajectory, increasing to 67,418 million in 2021 and then rising sharply to 82,722 million in 2022. This positive momentum continued into 2023 and 2024, with revenues reaching 88,898 million and 91,361 million US dollars respectively, indicating recovery and growth beyond pre-2019 levels.

Parks, Resorts and Other Property Assets

The net value of parks, resorts, and related property assets showed steady growth from 31,809 million US dollars in 2019 to 40,663 million in 2024. This category increased annually without any contractions, reflecting ongoing investment or appreciation in these assets. The consistent rise suggests a strategic emphasis on physical property and related operational assets within the business.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio declined from 2.19 in 2019 to 1.81 in 2020, aligning with the decrease in revenue during that year. Subsequently, the ratio remained relatively stable, with a slight uptick in 2021 to 1.83. In 2022, it increased notably to 2.18 and further improved to 2.25 in both 2023 and 2024. The ratio’s improvement over time suggests enhanced efficiency in generating revenue from fixed assets, particularly recovering and surpassing previous levels post-2020.

Overall Observations

The data reflect a period of initial contraction in 2020, followed by sustained recovery and growth in revenues and asset values through 2024. The consistent increase in parks, resorts, and other property assets alongside improving net fixed asset turnover implies effective asset management and operational efficiency improvements. These trends collectively indicate strengthening financial performance and asset utilization in the most recent years.

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

Revenues

The revenue figures show a decline from 69,570 million US$ in 2019 to 65,388 million US$ in 2020, reflecting a decrease likely influenced by external factors during that period. However, starting in 2021, revenues increased steadily, rising to 67,418 million US$ and then showing significant growth in subsequent years, reaching 82,722 million US$ in 2022, 88,898 million US$ in 2023, and 91,361 million US$ in 2024. This upward trajectory indicates a robust recovery and improvement in sales performance, suggesting enhanced market demand or effective revenue-generating strategies.

Total assets

The total assets remained relatively stable across the years, with modest fluctuations. The asset base increased slightly from 193,984 million US$ in 2019 to a peak of 205,579 million US$ in 2023 before decreasing to 196,219 million US$ in 2024. This variability suggests periods of investment or divestment, with the general level of assets maintained within a consistent range.

Total asset turnover

The total asset turnover ratio, measuring how efficiently assets generate revenue, decreased from 0.36 in 2019 to 0.32 in 2020, paralleling the revenue decline. It then increased moderately to 0.33 in 2021, followed by more pronounced improvements in the following years: 0.41 in 2022, 0.43 in 2023, and reaching 0.47 in 2024. This trend indicates an increasing efficiency in utilizing assets to drive revenues, with the latest figures showing a substantial enhancement compared to the earlier periods.

In summary, the data reflects an initial challenging period with declining revenues and asset turnover efficiency, followed by a consistent recovery and optimization of asset use, culminating in stronger revenue performance and higher asset turnover ratios by 2024.

Revenues

The revenues demonstrate a fluctuation pattern with an initial decline from 69,570 million USD in 2019 to 65,388 million USD in 2020. Subsequently, revenues recovered progressively, reaching 67,418 million USD in 2021, followed by a significant increase to 82,722 million USD in 2022. This upward trend continued into 2023 and 2024, with revenues rising to 88,898 million USD and 91,361 million USD, respectively.

Total Disney Shareholder’s Equity

The total shareholder’s equity shows a general increasing trend over the period. Starting at 88,877 million USD in 2019, equity declined in 2020 to 83,583 million USD. However, it rebounded in subsequent years, increasing steadily to 88,553 million USD in 2021, and then consistently rising each year to reach 100,696 million USD by 2024.

Equity Turnover Ratio

The equity turnover ratio, which indicates how effectively equity is used to generate revenues, remained stable at 0.78 in both 2019 and 2020. It then slightly declined to 0.76 in 2021 but increased noticeably in the following years. The ratio rose to 0.87 in 2022 and continued to improve to 0.90 in 2023, reaching 0.91 in 2024. This upward movement suggests enhanced efficiency in utilizing equity to produce revenue over the recent periods.

Overall Analysis

Despite the dip in revenue and equity in 2020, likely reflecting challenging market conditions during that period, the company demonstrated strong recovery and growth in subsequent years. The consistent increase in revenues from 2021 onwards, together with the improving equity turnover ratio, indicates a positive trend in operational efficiency and revenue generation. Meanwhile, the steady growth in shareholder’s equity after 2020 suggests improved financial stability and retained earnings, supporting sustained business development.