Walt Disney Co. (NYSE:DIS)

The net fixed asset turnover ratio exhibits a generally stable to slightly increasing trend over the analyzed periods. Initially, the ratio stands around 2.2 and experiences minor fluctuations, dropping to approximately 1.82 in the early 2021 period. Subsequently, it shows a steady recovery and increment, reaching a peak of about 2.54 in 2023, followed by a moderate decline toward the end of the observed timeframe, settling near 2.41 by March 2025. This pattern suggests fluctuating but overall improving efficiency in utilizing fixed assets to generate sales, despite some transient declines.

The total asset turnover ratio starts near 0.36 and initially demonstrates a mild decline until early 2021, dropping close to 0.29. From this point, there is a consistent and significant upward trend, with the ratio rising steadily to approximately 0.48 by early 2025. This increasing trend indicates an improved overall efficiency in asset utilization to generate revenues, suggesting better management or more productive use of assets over time.

The equity turnover ratio reflects a gradual increase with some variability. Beginning at about 0.78, it peaks close to 0.87 in mid-2019, then experiences a period of decline, reaching around 0.68 in early 2021. From this low, the ratio steadily recovers and increases, fluctuating around 0.90 during the most recent periods and remaining largely stable through early 2025. This pattern indicates an improving ability to generate revenue from shareholders' equity after a temporary slowdown.

Key observations

All three turnover ratios (net fixed asset, total asset, and equity) faced downturns around early 2021, suggesting a period of reduced operational efficiency or external challenges affecting asset utilization and equity productivity.

Following this downturn, each ratio exhibits a recovery trend, with total asset turnover showing the most pronounced improvement, indicating a stronger operational performance in asset deployment.

The net fixed asset turnover ratio's fluctuations are relatively modest, pointing to a more consistent use of fixed assets despite external pressures.

The equity turnover's return to near historical highs signifies restored effectiveness in using equity capital to generate revenue.

The quarterly financial data reveals several noteworthy trends and patterns across the reported periods.

Revenues

Revenue figures demonstrate variability with a noticeable dip in early 2020, coinciding with the global pandemic period. Specifically, revenues decreased from 20,877 million USD in December 2019 to 11,779 million USD by June 2020. This decline reflects the impact on business operations during that period. Following this trough, revenues show a consistent recovery trajectory through 2021 and 2022, reaching highs above 23,000 million USD by late 2022 and into 2023. Despite some fluctuations, the general trend post-mid 2020 is upward, suggesting an ongoing recovery and growth phase.

Parks, Resorts and Other Property, Net

This asset base exhibits a steady increase over the entire timeframe. From 29,797 million USD at the end of 2018, it increased continuously to reach 39,095 million USD by the quarter ending March 2025. This trend indicates ongoing investment and expansion or valuation increases in fixed assets related to parks and resorts, underscoring the strategic importance of these assets within the company’s operations.

Net Fixed Asset Turnover

The net fixed asset turnover ratio reflects efficiency in utilizing fixed assets to generate revenues. From the available data starting mid-2019, the ratio initially rose to 2.43 by June 2019 but then declined sharply to 1.82 by January 2021, corresponding with the predominantly reduced revenues during the pandemic. Subsequently, a steady improvement is evident, with the ratio climbing consistently to approximately 2.54 by late 2023. This suggests improved operational efficiency and asset utilization as revenue generation strengthens and fixed asset values increase at a steadier pace.

In summary, revenues experienced a pronounced decline during the pandemic period but have shown a substantial recovery thereafter. The asset base related to parks and resorts has been on a gradual upward trend, reflecting sustained investment or valuation gains. The net fixed asset turnover ratio illustrates a dip in asset efficiency during the revenue decline phase but indicates a return to stronger operational performance over the subsequent periods. Overall, the data depicts resilience and recovery with a return to growth and improved asset utilization.

Revenue Trends

Revenues demonstrated a fluctuating pattern over the observed quarterly periods. Starting at approximately 15.3 billion USD at the end of 2018, revenues increased to a peak around 20.9 billion USD in the fourth quarter of 2019. This was followed by a marked decline in early 2020, with revenues falling to about 11.8 billion USD in the second quarter, likely reflecting external challenges impacting operations. Subsequently, a gradual recovery occurred, with revenues consistently rising to reach new highs beyond 23 billion USD by the end of 2024 and into early 2025. This overall trajectory suggests resilience and successful adaptation after a period of notable revenue contraction.

Total Assets

Total assets exhibited substantial volatility. Beginning near 100 billion USD at the close of 2018, there was a significant increase to over 200 billion USD from early 2019 onward. Although the asset base fluctuated slightly around that level through the subsequent quarters, it remained broadly stable within the range of approximately 195 to 207 billion USD over the full span analyzed. Minor declines toward the later periods suggest cautious asset management or possible disposals, but the total asset base remained robust throughout.

Total Asset Turnover

The total asset turnover ratio, which measures efficiency in utilizing assets to generate revenues, began at about 0.36 in mid-2019 and showed a general upward trend over time. The ratio gradually increased from approximately 0.30 in early 2020 to around 0.48 by early 2025. This reflects improving asset utilization efficiency, likely driven by increasing revenues relative to a stable asset base. The steady increase in turnover ratio indicates operational enhancements and possibly improved management focus on revenue generation from available assets.

Summary of Insights

The financial data reveals a company that experienced volatile revenue performance linked to external factors but managed a strong recovery and growth phase in recent quarters. The stable yet elevated asset base, coupled with rising asset turnover ratios, suggests improved operational efficiency and better capitalization of assets to drive revenue. Such trends are indicative of effective strategic responses and could signal optimistic prospects for sustaining financial performance going forward.

Revenues

The revenue figures exhibit variability across the reported periods, starting at approximately $15.3 billion in the quarter ending December 29, 2018. There is a notable increase in revenue reaching above $20 billion in mid-2019, followed by fluctuations throughout the subsequent quarters. A pronounced decline occurs in the quarter ending June 27, 2020, where revenues drop to around $11.8 billion, likely reflecting external adverse conditions impacting the business. Following this low point, revenues gradually recover, surpassing previous levels and achieving a peak of approximately $23.5 billion by the quarter ending December 31, 2022. The data shows a pattern of cyclical dips and recoveries with revenues settling in a range between $21 billion and $24 billion in the most recent quarters. Most recent data from the first quarter of 2025 shows a slightly lower revenue at about $23.6 billion compared to the previous quarter.

Total Disney Shareholders’ Equity

Shareholders’ equity starts at approximately $50.3 billion at the end of 2018 and nearly doubles to about $90 billion by the first quarter of 2019, indicating a significant equity injection or revaluation event early in the data set. Following this increase, equity remains relatively stable with minor fluctuations around the $85 billion to $100 billion range over the subsequent periods. A gradual upward trend is noticeable from 2021 onward, with equity increasing to over $104 billion by the first quarter of 2025. This steady increase in equity despite revenue volatility suggests consistent retained earnings or additional equity contributions over time.

Equity Turnover Ratio

The equity turnover ratio, available from mid-2019 onwards, ranges between 0.68 and 0.91 throughout the observed quarters. Initial data in 2019 shows a lower turnover around 0.78, followed by a modest increase until early 2020. A dip is observed around the quarter ending April 3, 2021, where the ratio reaches its lowest at 0.68, which could indicate reduced efficiency in generating revenues from equity during this period. Since then, the equity turnover ratio demonstrates an upward trend with occasional minor fluctuations, peaking near 0.91 in the most recent quarters. This trend signifies improving efficiency in leveraging shareholders’ equity to generate revenue.