Walt Disney Co. (NYSE:DIS)

The profitability ratios demonstrate a clear positive trend over the analyzed period, spanning from January 2021 to March 2025. Initially, the company experienced negative profitability, but a consistent improvement is observed across all measured metrics. The rate of improvement accelerated in the later periods, particularly from September 2024 onwards.

Gross Profit Margin

The gross profit margin exhibited a steady upward trajectory throughout the period. Starting at 29.85% in January 2021, it increased consistently to reach 37.76% in September 2025. The most significant gains occurred between October 2022 and December 2024, indicating improved cost management or pricing strategies. A slight decrease is noted in the final period, December 2025, to 37.28%.

Operating Profit Margin

The operating profit margin showed the most dramatic improvement. Beginning with negative values in early 2021 (-7.37% to -7.99%), it transitioned to positive territory by July 2021 (2.60%). The margin continued to climb, reaching 13.78% in September 2025. This suggests substantial improvements in operational efficiency and cost control. The increase from March 2024 (5.40%) to September 2025 (13.78%) is particularly noteworthy.

Net Profit Margin

Similar to the operating margin, the net profit margin moved from negative figures in the initial periods to positive and increasingly higher values. It rose from -8.15% in January 2021 to 12.80% in September 2025. The acceleration in growth is evident in the latter half of the period, mirroring the trends observed in the other profitability ratios. The peak value of 13.14% was achieved in June 2025.

Return on Equity (ROE)

ROE followed the overall positive trend, increasing from -5.89% in January 2021 to 11.29% in September 2025. This indicates a growing ability to generate profits from shareholder investments. The improvement in ROE is consistent with the increases in net income and, to a lesser extent, changes in equity. The value remained constant in September 2025 and December 2025.

Return on Assets (ROA)

ROA also demonstrated a consistent upward trend, moving from -2.45% in January 2021 to 6.06% in December 2025. This signifies an enhanced ability to generate profits from the company’s assets. The growth in ROA is less pronounced than that of the other ratios, but still represents a significant positive change. The highest value was achieved in June 2025 (6.28%).

In summary, the analyzed period reflects a substantial and consistent improvement in profitability across all measured ratios. The company successfully transitioned from negative profitability to strong positive returns, with the most significant gains occurring in the later quarters. This suggests effective strategic initiatives and operational improvements.

The gross profit margin exhibited a generally positive trend over the analyzed period, spanning from January 2021 to March 2025. Initial values fluctuated within a narrow range before demonstrating consistent growth, peaking in the latter half of the period, and then stabilizing at a higher level.

Initial Period (Jan 2021 – Oct 2021)

The gross profit margin began at 29.85% in January 2021 and experienced moderate fluctuations, increasing to 30.65% in April 2021, 31.12% in July 2021, and reaching 33.06% in October 2021. This indicates a gradual improvement in profitability during this timeframe.

Growth Phase (Jan 2022 – Sep 2022)

A continued upward trajectory was observed from January 2022 through September 2022. The margin rose from 34.34% to 34.43%, then decreased slightly to 33.40% in December 2022. This period demonstrates a sustained level of profitability, with minor variations.

Peak and Stabilization (Apr 2023 – Mar 2025)

From April 2023, the gross profit margin continued to increase, reaching a peak of 37.61% in June 2025. The margin showed a consistent increase from 33.04% in April 2023 to 35.03% in March 2024, and then to 35.36% in June 2024, 36.74% in September 2024, 37.10% in December 2024, and finally 37.61% in June 2025. A slight decrease to 37.28% was observed in September 2025 and then to 37.28% in December 2025, suggesting a stabilization around this higher level.

Overall, the trend suggests increasing efficiency in managing the cost of goods sold relative to revenue. The consistent growth in the gross profit margin indicates a strengthening ability to generate profit from core business operations. The stabilization in the most recent periods suggests that the company has successfully maintained these improved profitability levels.

The operating profit margin exhibited significant fluctuations throughout the analyzed period, beginning in early 2021 and extending through late 2025. Initial values indicated negative profitability, followed by a substantial recovery and subsequent period of growth. A detailed examination reveals distinct phases in the margin’s performance.

Initial Period (Jan 2, 2021 – Oct 2, 2021)

The operating profit margin commenced at -7.37% and initially decreased to -7.99% before showing a positive trend. However, it remained relatively low, reaching only 2.60% by July 3, 2021, and 4.46% by October 2, 2021. This suggests initial challenges in converting revenue into operating profit.

Recovery and Moderate Growth (Jan 1, 2022 – Oct 1, 2022)

A marked improvement began in January 2022, with the margin rising to 6.93%. This upward trajectory continued through October 2022, peaking at 8.01% in July, before settling at 7.90%. This period demonstrates a successful turnaround in operational efficiency and profitability.

Continued Improvement (Dec 31, 2022 – Sep 30, 2023)

The operating profit margin continued to demonstrate positive momentum, reaching 7.42% in December 2022 and peaking at 8.02% in April 2023. A temporary dip to -9% in July 2023 represents a significant outlier, potentially attributable to specific, short-term factors impacting operating income. The margin recovered to 6.87% by December 2023.

Strong Growth and Peak Performance (Mar 30, 2024 – Sep 27, 2025)

From March 2024 onwards, the operating profit margin experienced substantial growth, reaching 9.08% in June 2024 and 10.07% in December 2024. This trend continued into 2025, with the margin peaking at 13.78% in September 2025. This indicates a sustained period of strong operational performance and effective cost management. A slight decrease to 13.53% was observed by December 2025.

Overall, the operating profit margin demonstrated a clear progression from initial losses to substantial profitability. The outlier in July 2023 warrants further investigation, but the overarching trend indicates a strengthening of the company’s operational efficiency and its ability to generate profit from its revenue stream. The most recent values suggest a period of peak performance, although a minor decline was observed in the final reporting period.

The net profit margin exhibited considerable fluctuation over the analyzed period, spanning from January 2021 to March 2025. Initial values indicated negative profitability, followed by a period of improvement and subsequent volatility before reaching a peak and then moderating.

Initial Period (Jan 2021 - Oct 2021)

The net profit margin began with negative values in January and April 2021, at -8.15% and -7.73% respectively. A positive trend emerged in July 2021, reaching 1.77%, and continued to increase to 2.96% in October 2021, suggesting improving profitability during this timeframe.

Growth and Stabilization (Jan 2022 - Oct 2022)

The net profit margin continued its upward trajectory in the first half of 2022, peaking at 5.31% in April 2022. Subsequent quarters showed a slight decline, stabilizing around 3.80% to 4.22% through October 2022. This period indicates a relatively stable, positive profitability level.

Volatility and Peak (Dec 2022 - Jun 2025)

A significant increase in net profit margin was observed in December 2022, reaching 5.93%. This positive trend continued into 2023, with a notable dip into negative territory in July 2023 (-2.06%). However, the margin rebounded strongly, peaking at 13.14% in September 2025. A slight decrease to 12.80% was observed in December 2025. The period demonstrates substantial volatility, culminating in a high margin before a minor pullback.

Overall Trend

The overall trend reveals a transition from initial losses to increasing profitability, followed by periods of stabilization and significant fluctuation. The most recent quarters demonstrate a high level of profitability, although the margin has shown some moderation from its peak. The substantial increase in the net profit margin in the latter part of the period warrants further investigation to understand the underlying drivers.

The observed fluctuations suggest sensitivity to revenue changes and cost management strategies. The negative margin in July 2023 is a notable outlier and requires further scrutiny to determine the contributing factors.

The Return on Equity (ROE) exhibited considerable fluctuation over the analyzed period, spanning from January 2021 to December 2025. Initially, the ROE was negative, indicating a loss relative to shareholder equity, and remained below zero for the first three reporting periods. A positive trend then emerged, with ROE gradually increasing through October 2022.

Initial Period (Jan 2021 - Oct 2021)

The ROE began at -5.89% in January 2021 and showed improvement, reaching 2.25% by October 2021. This suggests a recovery in profitability relative to equity during this timeframe, though it remained relatively low.

Growth Phase (Jan 2022 - Dec 2022)

From January 2022 to December 2022, ROE continued its upward trajectory, increasing from 3.43% to 3.45%. This period demonstrates a sustained, albeit modest, improvement in the company’s ability to generate profits from shareholder investments. The values remained relatively stable within this period.

Volatility and Peak (Apr 2023 - Jun 2025)

A significant downturn was observed in April 2023, with ROE falling to 2.31%, followed by a substantial negative value of -460 million in net income. However, the ROE quickly rebounded, reaching 4.75% in June 2024 and continuing to climb to a peak of 11.29% in September 2025. This indicates a period of significant volatility, followed by strong performance. The ROE values in the latter half of the period were substantially higher than those observed earlier.

Recent Performance (Sep 2025 - Dec 2025)

The ROE remained at 11.29% in December 2025, suggesting a stabilization of the high performance achieved in the preceding quarters. This indicates the company maintained its improved profitability relative to shareholder equity at the end of the analyzed period.

Overall, the ROE demonstrates a transition from negative values to a period of sustained growth, followed by volatility and ultimately, a peak in profitability. The recent stabilization at a high ROE suggests a positive trend in the company’s financial performance.

The Return on Assets (ROA) exhibited significant fluctuations over the analyzed period, spanning from January 2021 to December 2025. Initially, the ROA was negative, indicating a loss relative to the company’s assets. However, a clear upward trend emerged, culminating in substantial gains by the end of the observation period.

Initial Performance (Jan 2021 – Oct 2021)

The ROA began at -2.45% in January 2021 and remained negative in April 2021 at -2.25%. A positive shift occurred in July 2021, reaching 0.56%, followed by a further increase to 0.98% in October 2021. This period demonstrates a recovery from initial losses, though the ROA remained relatively modest.

Moderate Growth (Jan 2022 – Dec 2022)

The ROA continued its upward trajectory, reaching 1.52% in January 2022 and 1.31% in April 2022. A peak of 1.64% was observed in December 2022, with a slight fluctuation to 1.54% in July and October 2022. This phase suggests a period of stable, moderate profitability relative to asset utilization.

Volatility and Subsequent Expansion (Jan 2023 – Dec 2023)

The ROA experienced volatility in 2023. It rose to 2.01% in April 2023, then sharply declined to -460% in July 2023, before recovering significantly to 1.911% in December 2023. This period indicates a substantial, albeit temporary, setback in asset profitability, followed by a strong rebound.

Strong Performance and Peak (Jan 2024 – Dec 2025)

From January 2024 onwards, the ROA demonstrated consistently strong performance. It increased from 0.87% in March 2024 to 2.41% in June 2024, 2.53% in September 2024, and peaked at 5.88% in December 2025. This represents a substantial improvement in the company’s ability to generate earnings from its assets. The ROA concluded the period at 6.06% in December 2025, indicating a sustained high level of profitability.

Overall, the ROA trend indicates a significant improvement in the company’s asset utilization efficiency and profitability over the five-year period. While initial periods showed losses and modest gains, the latter years demonstrate a robust and accelerating increase in returns generated from the asset base.