Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).

Walt Disney Co., profitability ratios

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 deteriorated from 2016 to 2017 and from 2017 to 2018.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Walt Disney Co.’s operating profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Walt Disney Co.’s net profit margin deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Walt Disney Co.’s ROE improved from 2016 to 2017 and from 2017 to 2018.
ROA	A profitability ratio calculated as net income divided by total assets.	Walt Disney Co.’s ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Walt Disney Co., gross profit margin calculation, comparison to benchmarks

		Sep 29, 2018	Sep 30, 2017	Oct 1, 2016	Oct 3, 2015	Sep 27, 2014	Sep 28, 2013
	Selected Financial Data (USD $ in millions)
	Gross profit
	Revenues
	Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors
	Charter Communications Inc.
	Comcast Corp.
	Twenty-First Century Fox Inc.

2018 Calculations

¹ Gross profit margin = 100 × Gross profit ÷ Revenues
= 100 × hidden ÷ hidden = hidden

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 deteriorated from 2016 to 2017 and from 2017 to 2018.

Walt Disney Co., operating profit margin calculation, comparison to benchmarks

		Sep 29, 2018	Sep 30, 2017	Oct 1, 2016	Oct 3, 2015	Sep 27, 2014	Sep 28, 2013
	Selected Financial Data (USD $ in millions)
	Operating income
	Revenues
	Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors
	Charter Communications Inc.
	Comcast Corp.
	Twenty-First Century Fox Inc.
	Operating Profit Margin, Sector
	Media
	Operating Profit Margin, Industry
	Consumer Services

2018 Calculations

¹ Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Walt Disney Co.’s operating profit margin deteriorated from 2016 to 2017 and from 2017 to 2018.

Walt Disney Co., net profit margin calculation, comparison to benchmarks

		Sep 29, 2018	Sep 30, 2017	Oct 1, 2016	Oct 3, 2015	Sep 27, 2014	Sep 28, 2013
	Selected Financial Data (USD $ in millions)
	Net income attributable to The Walt Disney Company (Disney)
	Revenues
	Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors
	Charter Communications Inc.
	Comcast Corp.
	Twenty-First Century Fox Inc.
	Net Profit Margin, Sector
	Media
	Net Profit Margin, Industry
	Consumer Services

2018 Calculations

¹ Net profit margin = 100 × Net income attributable to The Walt Disney Company (Disney) ÷ Revenues
= 100 × hidden ÷ hidden = hidden

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 deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

Walt Disney Co., ROE calculation, comparison to benchmarks

		Sep 29, 2018	Sep 30, 2017	Oct 1, 2016	Oct 3, 2015	Sep 27, 2014	Sep 28, 2013
	Selected Financial Data (USD $ in millions)
	Net income attributable to The Walt Disney Company (Disney)
	Total Disney Shareholder’s equity
	Ratio
	ROE¹
	Benchmarks
	ROE, Competitors
	Charter Communications Inc.
	Comcast Corp.
	Twenty-First Century Fox Inc.
	ROE, Sector
	Media
	ROE, Industry
	Consumer Services

2018 Calculations

¹ ROE = 100 × Net income attributable to The Walt Disney Company (Disney) ÷ Total Disney Shareholder’s equity
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders’ equity.	Walt Disney Co.’s ROE improved from 2016 to 2017 and from 2017 to 2018.

Walt Disney Co., ROA calculation, comparison to benchmarks

		Sep 29, 2018	Sep 30, 2017	Oct 1, 2016	Oct 3, 2015	Sep 27, 2014	Sep 28, 2013
	Selected Financial Data (USD $ in millions)
	Net income attributable to The Walt Disney Company (Disney)
	Total assets
	Ratio
	ROA¹
	Benchmarks
	ROA, Competitors
	Charter Communications Inc.
	Comcast Corp.
	Twenty-First Century Fox Inc.
	ROA, Sector
	Media
	ROA, Industry
	Consumer Services

2018 Calculations

¹ ROA = 100 × Net income attributable to The Walt Disney Company (Disney) ÷ Total assets
= 100 × hidden ÷ hidden = hidden

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	Walt Disney Co.’s ROA deteriorated from 2016 to 2017 but then improved from 2017 to 2018 exceeding 2016 level.

	Walt Disney Co.	Other companies (not purchased previously)
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Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
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Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
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Walt Disney Co. (DIS)

Profitability Analysis