Walt Disney Co. (NYSE:DIS)

The long-term investment activity ratios demonstrate generally positive trends over the observed period, with some indications of stabilization or slight decline in the most recent quarters. Overall, the company appears to be becoming more efficient in its asset utilization, though recent performance suggests potential headwinds.

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibits a consistent upward trend from 1.88 in January 2021 to a peak of 2.52 in October 2022. This indicates increasing efficiency in generating revenue from its fixed assets. However, from December 2022 through June 2025, the ratio shows a gradual decline, decreasing to 2.35. This suggests a potential slowdown in the rate at which revenue is generated from fixed assets, possibly due to increased investment in fixed assets without a corresponding increase in revenue, or a decrease in revenue itself. The decline, while present, is relatively modest.

Total Asset Turnover

The total asset turnover ratio demonstrates a clear and consistent upward trajectory from 0.30 in January 2021 to 0.48 in June 2025. This signifies improved efficiency in utilizing all assets to generate sales. The rate of increase appears to slow after reaching 0.47 in September 2024, with a slight decrease to 0.48 in June 2025. This suggests that while asset utilization remains strong, the rate of improvement may be diminishing.

Equity Turnover

The equity turnover ratio generally increases from 0.72 in January 2021 to 0.91 in September 2024, indicating a more effective use of shareholder equity to generate revenue. The ratio then experiences a slight decline, falling to 0.88 in December 2025. This suggests a potential decrease in the company’s ability to generate sales from each dollar of equity, though the ratio remains relatively high compared to its earlier values. The fluctuations are minimal.

In summary, the company has generally improved its asset and equity turnover ratios over the analyzed period. However, the recent stabilization and slight declines in these ratios warrant further investigation to determine the underlying causes and potential implications for future performance.

The net fixed asset turnover ratio exhibits a generally increasing trend over the observed period, with some fluctuations. Initially, the ratio stood at 1.88 in January 2021 and demonstrated volatility before beginning a sustained climb. The most recent period, ending in December 2025, shows a slight decline from peak levels, but remains above the initial value.

Overall Trend

From January 2021 through December 2022, the ratio increased from 1.88 to 2.47, representing a substantial improvement in the efficiency with which fixed assets are used to generate revenue. This suggests improved operational performance and asset utilization during this timeframe. The period from January 2023 to December 2025 shows a more moderate trend, with the ratio peaking at 2.54 and then decreasing to 2.22. While still positive, this indicates a potential stabilization or slight decrease in asset efficiency.

Short-Term Fluctuations

Within the overall upward trend, there are noticeable quarterly variations. For example, a dip is observed from July 2021 (1.96) to October 2021 (2.07), followed by continued growth. Similarly, a slight decrease is seen between October 2022 (2.46) and December 2022 (2.47). These fluctuations may be attributable to seasonal variations in revenue, changes in asset base, or other short-term operational factors.

Recent Performance

The most recent quarters demonstrate a downward trend. The ratio decreased from 2.598 in December 2023 to 2.22 in December 2025. This decline warrants further investigation to determine the underlying causes, such as increased investment in fixed assets without a corresponding increase in revenue, or a slowdown in revenue growth. The ratio remains above the levels observed in the earlier part of the period, but the recent trend is a point to monitor.

Peak and Trough Values

The highest recorded ratio is 2.54, occurring in both April 2023 and July 2023. The lowest recorded ratio is 1.82, observed in April 2021. These values represent the extremes of asset turnover efficiency during the analyzed period.

In conclusion, the net fixed asset turnover ratio generally improved over the analyzed period, indicating increasing efficiency in asset utilization. However, the recent decline suggests a potential shift in this trend, requiring further scrutiny to understand the contributing factors and potential implications.

The total asset turnover ratio exhibits a consistent upward trend over the analyzed period, spanning from January 2021 to September 2025. Initially, the ratio stood at 0.30, indicating that for every dollar of assets, the company generated 30 cents in revenue. Throughout the period, the ratio generally increased, reaching 0.47 by the end of the observation window.

Overall Trend

A clear and sustained increase in the total asset turnover ratio is observed. This suggests improving efficiency in asset utilization, meaning the company is generating more revenue from its asset base over time. The increase is not linear, but demonstrates periods of more rapid growth followed by stabilization.

Early Period (Jan 2021 – Oct 2022)

From January 2021 to October 2022, the ratio increased from 0.30 to 0.41. This represents a relative increase of approximately 37%. The growth was gradual, with incremental increases each quarter, indicating a steady improvement in how effectively assets were used to generate sales.

Mid-Period (Dec 2022 – Sep 2024)

The period between December 2022 and September 2024 saw continued growth, albeit at a slower pace. The ratio climbed from 0.42 to 0.47. This suggests that while asset utilization continued to improve, the rate of improvement diminished slightly compared to the earlier period.

Recent Period (Jun 2024 – Sep 2025)

The most recent data indicates a stabilization of the ratio. From June 2024 to September 2025, the ratio fluctuated between 0.47 and 0.48, before decreasing slightly to 0.47. This could indicate that the company is approaching a peak in its asset turnover efficiency, or that external factors are beginning to influence the ratio.

In summary, the company demonstrates a positive trend in its ability to generate revenue from its assets. The increasing ratio suggests improved operational efficiency and effective asset management. The recent stabilization warrants further investigation to determine if this represents a plateau or a temporary pause in the upward trend.

The equity turnover ratio for the analyzed period demonstrates a generally increasing trend, with some fluctuations. Initially, the ratio stood at 0.72 and experienced a slight decrease to 0.68 before beginning an upward trajectory. This upward movement continued through the first half of 2022, peaking at 0.88. Subsequent quarters show a more stable range, oscillating between 0.86 and 0.91, with a slight dip to 0.87 in the most recent period.

Overall Trend

The overall trend indicates improving efficiency in generating revenue from shareholders’ equity. The ratio increased from 0.72 in January 2021 to a high of 0.88 in October 2022, suggesting the company became more effective at utilizing equity to produce sales. While the ratio has fluctuated since then, it has largely remained within a relatively narrow and elevated range.

Short-Term Fluctuations

A minor dip in the ratio is observed between January and April 2021. This could be attributed to seasonal sales patterns or temporary shifts in equity levels. The ratio then recovers and continues to climb. A similar, albeit smaller, fluctuation occurs between October 2022 and December 2022, followed by stabilization.

Recent Performance

The most recent quarters (March 2024 – March 2025) show a slight decrease from 0.91 to 0.87, and then a slight increase to 0.90. This suggests a potential leveling off of the previously observed growth, or a minor correction. The ratio remains relatively high compared to the beginning of the analyzed period.

Peak and Trough

The highest equity turnover ratio was recorded in October 2022 at 0.88. The lowest ratio was observed in January 2021 at 0.72. The difference between these values indicates a 22.22% improvement in equity utilization over the analyzed timeframe.

In conclusion, the equity turnover ratio suggests a positive trend in the company’s ability to generate revenue from its equity base. While recent quarters show some stabilization, the ratio remains at a comparatively strong level, indicating efficient capital management.