Walt Disney Co. (NYSE:DIS)

Net Fixed Asset Turnover

The net fixed asset turnover ratio experienced a decline from 2.36 in late 2019 to a low of 1.82 by early 2021, reflecting a reduction in the efficiency with which fixed assets were utilized to generate revenue during that period. Following this trough, there was a consistent upward trend reaching a peak of approximately 2.54 in the third quarter of 2023. In the subsequent periods, the ratio showed a gradual decline, ending at 2.35 in mid-2025. Overall, this pattern indicates an initial decrease in asset utilization effectiveness likely linked to external factors, followed by recovery and stabilization at a moderately higher performance compared to the initial period.

Total Asset Turnover

The total asset turnover ratio showed a similar initial downward movement, dropping from 0.37 to 0.29 between the end of 2019 and the first quarter of 2021. After this point, the ratio steadily improved, surpassing its pre-decline levels by the end of 2022 and continuing a gradual uptrend to reach 0.48 by mid-2025. This persistent increase suggests enhanced overall asset efficiency, with the company generating more revenues per unit of asset over time, indicating effective asset management and operational improvements post-2021.

Equity Turnover

The equity turnover ratio declined from 0.84 in late 2019 to around 0.68 in early 2021, marking the lowest utilization of shareholder equity for revenue generation during this timeframe. Subsequently, an upward recovery phase ensued, with values rising back above 0.9 in several quarters from 2023 onwards, before a slight decline toward 0.87 by mid-2025. This trend mirrors other asset turnover metrics, suggesting an initial period of reduced equity efficiency followed by improved performance and stabilization near previous levels, reflecting enhanced use of equity capital in driving sales.

Revenue Trends

Revenues demonstrate notable fluctuations over the observed quarters. Starting at approximately $20.9 billion, revenues declined sharply to about $11.8 billion by mid-2020, reflecting a significant downturn likely influenced by external factors. Following this low point, revenues progressively recovered, reaching over $23 billion by the end of 2022. Subsequent periods exhibit some volatility, with revenues oscillating around the $22 billion to $24 billion range through mid-2025, indicating a stabilization with moderate growth towards the later quarters.

Parks, Resorts, and Other Property, Net Asset Base

The net asset base for parks, resorts, and other property assets shows a steady upward trend throughout the periods analyzed. Starting at nearly $31.9 billion at the end of 2019, the asset base gradually increased to approximately $40.2 billion by mid-2025. This consistent growth suggests continuous investment or valuation increases in fixed assets related to properties and resorts, supporting long-term operational capacity.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio exhibits a declining trend from 2.36 to a low near 1.82 in early 2021, indicating decreasing efficiency in generating revenue from fixed assets during this period. This decline aligns with the revenue drop observed earlier. Thereafter, the ratio recovers steadily, peaking near 2.54 in late 2023, before experiencing a slight downward adjustment to around 2.35 by mid-2025. Overall, the ratio reflects an initial efficiency loss followed by recovery and relative stability in asset utilization.

Combined Insights

The data reveal a period of significant disruption in revenues, matched with a declining efficiency in fixed asset utilization. However, the asset base continued to grow steadily, implying sustained capital investment despite revenue pressures. As revenues rebounded, asset turnover improved, indicating restoration of operational efficiency. The trends suggest resilience and recovery over the observed period, with ongoing investments potentially positioning for future growth despite near-term volatility.

Revenue Trends

The revenue figures exhibit notable fluctuations over the analyzed periods. Initially, a decline is observed from nearly 20.9 billion to approximately 11.8 billion US dollars by the middle of 2020, likely impacted by external factors. Following this trough, revenues gradually recover, returning to levels exceeding 23 billion US dollars by the end of 2022 and maintaining a generally upward trajectory with intermittent variations through 2025. The later quarters consistently report revenues above 22 billion US dollars, signaling a recovery phase and growth momentum.

Total Assets Stability

Total assets remain relatively stable over the entire timeframe, oscillating narrowly around the 200 billion US dollars mark. Minor fluctuations are evident but there is no significant increasing or decreasing trend. This stability suggests a consistent asset base with limited major acquisitions or disposals during the period.

Total Asset Turnover Movement

The total asset turnover ratio starts at 0.37 and initially experiences a decline to a low of 0.29 by early 2021. After this, a progressive and steady increase occurs, reaching approximately 0.48 by mid-2025. This upward trend indicates improving efficiency in generating revenue from assets, implying enhanced utilization or operational effectiveness over time.

Summary of Financial Efficiency and Performance

Despite early disruptions reflected in reduced revenues and asset turnover, the data reveal a recovery phase characterized by steady revenue growth and significant enhancement in asset utilization. The consistent total assets base combined with rising asset turnover suggests successful operational adjustments and a more effective generation of revenues from existing assets. Overall, the company demonstrates resilience and improving financial efficiency in the analyzed quarters.

The financial data reveals several noteworthy trends concerning revenues, total shareholders’ equity, and equity turnover over an extended period.

Revenues

The revenue figures exhibit significant fluctuations across the periods analyzed. Initially, revenues dropped markedly from approximately $20.9 billion to around $11.8 billion, reflecting a notable contraction. Following this decline, there was a gradual recovery with some volatility, ultimately rising to nearly $23.7 billion by the end of the latest quarter. This pattern suggests an initial period of financial stress, possibly due to external disruptions, followed by a strong rebound and further incremental growth.

Total Disney Shareholders’ Equity

Shareholders' equity shows a relatively stable to gradually increasing trend. Early in the timeline, equity decreases slightly but recovers steadily throughout subsequent quarters. From an initial base near $89.8 billion, it grows to over $109 billion by the latest period. This indicates persistent capital growth and retention of earnings, contributing to a stronger balance sheet position despite short-term external challenges.

Equity Turnover Ratio

The equity turnover ratio, a measure of how efficiently equity is used to generate revenue, starts at 0.84 and shows a downward movement during periods of revenue decline, dropping to around 0.68. Subsequently, it trends upward, stabilizing near 0.9 in the most recent quarters. This increase implies an improvement in capital utilization efficiency as revenues recover and equity continues to grow, highlighting enhanced operational effectiveness.

In summary, the data demonstrates an initial revenue decline followed by recovery and growth. Shareholders’ equity overall trends upward, strengthening the financial foundation. The equity turnover ratio's recovery and stabilization around higher levels indicates better use of equity capital to generate revenues over time. This combination of trends suggests a positive transition from a period of financial strain to enhanced performance and capital management.