Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Walt Disney Co., profitability ratios
Based on: 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), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-10-01).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Walt Disney Co. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walt Disney Co. operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walt Disney Co. net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walt Disney Co. ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Walt Disney Co. ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Gross Profit Margin
Walt Disney Co., gross profit margin calculation, comparison to benchmarks
| Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 22,287 | 21,508 | 27,552 | 26,708 | 24,831 | 25,639 | |
| Revenues | 67,418 | 65,388 | 69,570 | 59,434 | 55,137 | 55,632 | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 33.06% | 32.89% | 39.60% | 44.94% | 45.04% | 46.09% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Alphabet Inc. | — | 53.58% | 55.58% | 56.48% | 58.88% | 61.08% | |
| Charter Communications Inc. | — | 37.77% | 36.14% | 36.15% | 36.17% | 35.68% | |
| Comcast Corp. | — | 68.02% | 68.39% | 68.58% | 69.97% | 69.57% | |
| Facebook Inc. | — | 80.58% | 81.94% | 83.25% | 86.58% | 86.29% | |
| Netflix Inc. | — | 38.89% | 38.28% | 36.89% | 34.49% | 31.72% | |
Based on: 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), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-10-01).
1 2021 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 22,287 ÷ 67,418 = 33.06%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Walt Disney Co. gross profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Operating Profit Margin
Walt Disney Co., operating profit margin calculation, comparison to benchmarks
| Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income (loss) | 3,005 | (1,941) | 10,668 | 14,804 | 13,775 | 14,202 | |
| Revenues | 67,418 | 65,388 | 69,570 | 59,434 | 55,137 | 55,632 | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 4.46% | -2.97% | 15.33% | 24.91% | 24.98% | 25.53% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Alphabet Inc. | — | 22.59% | 21.15% | 19.24% | 23.59% | 26.27% | |
| Charter Communications Inc. | — | 17.48% | 14.23% | 11.97% | 9.87% | 8.47% | |
| Comcast Corp. | — | 16.89% | 19.39% | 20.11% | 21.28% | 20.97% | |
| Facebook Inc. | — | 38.01% | 33.93% | 44.62% | 49.70% | 44.96% | |
| Netflix Inc. | — | 18.34% | 12.92% | 10.16% | 7.17% | 4.30% | |
| Operating Profit Margin, Sector | |||||||
| Media & Entertainment | — | 20.06% | 20.78% | 22.63% | 24.11% | 24.00% | |
| Operating Profit Margin, Industry | |||||||
| Communication Services | — | 16.41% | 19.54% | 19.38% | 20.29% | 20.24% | |
Based on: 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), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-10-01).
1 2021 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × 3,005 ÷ 67,418 = 4.46%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walt Disney Co. operating profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Net Profit Margin
Walt Disney Co., net profit margin calculation, comparison to benchmarks
| Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to The Walt Disney Company (Disney) | 1,995 | (2,864) | 11,054 | 12,598 | 8,980 | 9,391 | |
| Revenues | 67,418 | 65,388 | 69,570 | 59,434 | 55,137 | 55,632 | |
| Profitability Ratio | |||||||
| Net profit margin1 | 2.96% | -4.38% | 15.89% | 21.20% | 16.29% | 16.88% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Alphabet Inc. | — | 22.06% | 21.22% | 22.46% | 11.42% | 21.58% | |
| Charter Communications Inc. | — | 6.70% | 3.64% | 2.82% | 23.80% | 12.14% | |
| Comcast Corp. | — | 10.17% | 11.99% | 12.41% | 26.87% | 10.81% | |
| Facebook Inc. | — | 33.90% | 26.15% | 39.60% | 39.20% | 36.97% | |
| Netflix Inc. | — | 11.05% | 9.26% | 7.67% | 4.78% | 2.11% | |
| Net Profit Margin, Sector | |||||||
| Media & Entertainment | — | 16.27% | 16.87% | 19.61% | 20.54% | 17.65% | |
| Net Profit Margin, Industry | |||||||
| Communication Services | — | 11.24% | 14.02% | 15.63% | 20.08% | 12.78% | |
Based on: 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), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-10-01).
1 2021 Calculation
Net profit margin = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Revenues
= 100 × 1,995 ÷ 67,418 = 2.96%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walt Disney Co. net profit margin ratio deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Return on Equity (ROE)
Walt Disney Co., ROE calculation, comparison to benchmarks
| Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to The Walt Disney Company (Disney) | 1,995 | (2,864) | 11,054 | 12,598 | 8,980 | 9,391 | |
| Total Disney Shareholder’s equity | 88,553 | 83,583 | 88,877 | 48,773 | 41,315 | 43,265 | |
| Profitability Ratio | |||||||
| ROE1 | 2.25% | -3.43% | 12.44% | 25.83% | 21.74% | 21.71% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Alphabet Inc. | — | 18.09% | 17.05% | 17.30% | 8.30% | 14.01% | |
| Charter Communications Inc. | — | 13.53% | 5.30% | 3.39% | 25.32% | 8.77% | |
| Comcast Corp. | — | 11.66% | 15.78% | 16.38% | 33.11% | 16.12% | |
| Facebook Inc. | — | 22.72% | 18.29% | 26.28% | 21.43% | 17.26% | |
| Netflix Inc. | — | 24.96% | 24.62% | 23.12% | 15.60% | 6.97% | |
| ROE, Sector | |||||||
| Media & Entertainment | — | 14.84% | 15.68% | 18.79% | 18.64% | 15.22% | |
| ROE, Industry | |||||||
| Communication Services | — | 11.56% | 14.87% | 17.12% | 23.01% | 15.74% | |
Based on: 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), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-10-01).
1 2021 Calculation
ROE = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Total Disney Shareholder’s equity
= 100 × 1,995 ÷ 88,553 = 2.25%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walt Disney Co. ROE deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |
Return on Assets (ROA)
Walt Disney Co., ROA calculation, comparison to benchmarks
| Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to The Walt Disney Company (Disney) | 1,995 | (2,864) | 11,054 | 12,598 | 8,980 | 9,391 | |
| Total assets | 203,609 | 201,549 | 193,984 | 98,598 | 95,789 | 92,033 | |
| Profitability Ratio | |||||||
| ROA1 | 0.98% | -1.42% | 5.70% | 12.78% | 9.37% | 10.20% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Alphabet Inc. | — | 12.60% | 12.45% | 13.20% | 6.42% | 11.63% | |
| Charter Communications Inc. | — | 2.23% | 1.13% | 0.84% | 6.75% | 2.36% | |
| Comcast Corp. | — | 3.85% | 4.96% | 4.66% | 12.15% | 4.82% | |
| Facebook Inc. | — | 18.29% | 13.86% | 22.72% | 18.85% | 15.73% | |
| Netflix Inc. | — | 7.03% | 5.49% | 4.66% | 2.94% | 1.37% | |
| ROA, Sector | |||||||
| Media & Entertainment | — | 7.30% | 7.67% | 9.34% | 9.69% | 7.71% | |
| ROA, Industry | |||||||
| Communication Services | — | 4.53% | 5.92% | 6.82% | 8.98% | 5.72% | |
Based on: 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), 10-K (reporting date: 2017-09-30), 10-K (reporting date: 2016-10-01).
1 2021 Calculation
ROA = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Total assets
= 100 × 1,995 ÷ 203,609 = 0.98%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Walt Disney Co. ROA deteriorated from 2019 to 2020 but then slightly improved from 2020 to 2021. |