Analysis of Profitability Ratios
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Walt Disney Co., profitability ratios
Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
| 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.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Walt Disney Co.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Walt Disney Co.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Walt Disney Co.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Walt Disney Co.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020. |
Gross Profit Margin
Walt Disney Co., gross profit margin calculation, comparison to benchmarks
| Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | Oct 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross profit | 21,508 | 27,552 | 26,708 | 24,831 | 25,639 | 24,101 | |
| Revenues | 65,388 | 69,570 | 59,434 | 55,137 | 55,632 | 52,465 | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 32.89% | 39.60% | 44.94% | 45.04% | 46.09% | 45.94% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Activision Blizzard Inc. | 72.05% | 67.73% | 66.44% | 64.36% | 63.77% | — | |
| 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 (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
1 2020 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × 21,508 ÷ 65,388 = 32.89%
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.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Operating Profit Margin
Walt Disney Co., operating profit margin calculation, comparison to benchmarks
| Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | Oct 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income (loss) | (1,941) | 10,668 | 14,804 | 13,775 | 14,202 | 13,171 | |
| Revenues | 65,388 | 69,570 | 59,434 | 55,137 | 55,632 | 52,465 | |
| Profitability Ratio | |||||||
| Operating profit margin1 | -2.97% | 15.33% | 24.91% | 24.98% | 25.53% | 25.10% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Activision Blizzard Inc. | 33.81% | 24.76% | 26.51% | 18.65% | 21.37% | — | |
| 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 | 20.28% | 20.84% | 22.70% | 24.00% | 23.95% | — | |
| Operating Profit Margin, Industry | |||||||
| Communication Services | 16.57% | 19.58% | 19.45% | 20.28% | 20.25% | — | |
Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
1 2020 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Revenues
= 100 × -1,941 ÷ 65,388 = -2.97%
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.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Net Profit Margin
Walt Disney Co., net profit margin calculation, comparison to benchmarks
| Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | Oct 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to The Walt Disney Company (Disney) | (2,864) | 11,054 | 12,598 | 8,980 | 9,391 | 8,382 | |
| Revenues | 65,388 | 69,570 | 59,434 | 55,137 | 55,632 | 52,465 | |
| Profitability Ratio | |||||||
| Net profit margin1 | -4.38% | 15.89% | 21.20% | 16.29% | 16.88% | 15.98% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Activision Blizzard Inc. | 27.17% | 23.16% | 24.17% | 3.89% | 14.62% | — | |
| 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 | 16.44% | 16.96% | 19.69% | 20.21% | 17.58% | — | |
| Net Profit Margin, Industry | |||||||
| Communication Services | 11.38% | 14.09% | 15.72% | 19.91% | 12.79% | — | |
Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
1 2020 Calculation
Net profit margin = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Revenues
= 100 × -2,864 ÷ 65,388 = -4.38%
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.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020. |
Return on Equity (ROE)
Walt Disney Co., ROE calculation, comparison to benchmarks
| Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | Oct 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to The Walt Disney Company (Disney) | (2,864) | 11,054 | 12,598 | 8,980 | 9,391 | 8,382 | |
| Total Disney Shareholder’s equity | 83,583 | 88,877 | 48,773 | 41,315 | 43,265 | 44,525 | |
| Profitability Ratio | |||||||
| ROE1 | -3.43% | 12.44% | 25.83% | 21.74% | 21.71% | 18.83% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Activision Blizzard Inc. | 14.61% | 11.74% | 15.96% | 2.89% | 10.59% | — | |
| 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% | 15.59% | 18.72% | 18.26% | 15.10% | — | |
| ROE, Industry | |||||||
| Communication Services | 11.61% | 14.82% | 17.10% | 22.69% | 15.65% | — | |
Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
1 2020 Calculation
ROE = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Total Disney Shareholder’s equity
= 100 × -2,864 ÷ 83,583 = -3.43%
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.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020. |
Return on Assets (ROA)
Walt Disney Co., ROA calculation, comparison to benchmarks
| Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | Oct 3, 2015 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to The Walt Disney Company (Disney) | (2,864) | 11,054 | 12,598 | 8,980 | 9,391 | 8,382 | |
| Total assets | 201,549 | 193,984 | 98,598 | 95,789 | 92,033 | 88,182 | |
| Profitability Ratio | |||||||
| ROA1 | -1.42% | 5.70% | 12.78% | 9.37% | 10.20% | 9.51% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Activision Blizzard Inc. | 9.51% | 7.57% | 10.17% | 1.46% | 5.54% | — | |
| 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 | 7.34% | 7.67% | 9.36% | 9.48% | 7.66% | — | |
| ROA, Industry | |||||||
| Communication Services | 4.58% | 5.93% | 6.85% | 8.88% | 5.72% | — | |
Based on: 10-K (filing date: 2020-11-25), 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25).
1 2020 Calculation
ROA = 100 × Net income (loss) attributable to The Walt Disney Company (Disney) ÷ Total assets
= 100 × -2,864 ÷ 201,549 = -1.42%
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.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020. |