Walt Disney Co. (NYSE:DIS)

Gross Profit Margin

The gross profit margin demonstrates a fluctuating trend over the periods analyzed. Starting from 39.6%, it declines progressively to a low of around 29.85%, indicating pressure on the company’s gross profitability during that timeframe. However, from early 2021 onward, the margin shows a consistent recovery, rising to 37.1% by the latest period. This suggests an improving efficiency or favorable cost management in production or service delivery toward the end of the sequence.

Operating Profit Margin

The operating profit margin exhibits significant volatility. Initially near 15.33%, it declines sharply, hitting negative values around -7.99% during 2020, which may reflect operational challenges or increased expenses. Notably, from late 2020 there is a robust recovery trend, with margins improving to reach 12.64% by the final period. This improvement implies the company has been able to enhance its operational efficiency and control costs effectively after the downturn.

Net Profit Margin

The net profit margin's behavior aligns in part with the operating margin trends, starting at 15.89% and experiencing a noticeable drop to negative percentages around 2020, with the lowest point near -8.15%. This period likely reflects adverse market conditions or extraordinary expenses. From 2021 onward, net profitability recovers gradually, peaking at 9.47% in the latest quarter, indicating an overall improvement in profitability after-tax and better bottom-line results.

Return on Equity (ROE)

ROE follows a cyclical pattern similar to the profitability margins. It drops from 12.44% to negative values during 2019-2020, touching lows around -5.89%, suggesting periods of diminished shareholder returns. The subsequent recovery is steady, with ROE reaching 8.54% by the last recorded quarter. This trend points to restored confidence in the company’s ability to generate profits from equity capital.

Return on Assets (ROA)

ROA trends are consistent with overall profitability declines and subsequent recovery. Starting at 5.7%, ROA falls to negative territory during the challenging periods around 2020, reaching approximately -2.45%, indicating inefficient asset utilization. From 2021 onwards, the metric increases gradually, reaching 4.55% in the final period. This improvement may be attributed to better asset management and operational recovery.

The quarterly financial data reveals several notable trends in revenue, gross profit, and gross profit margin over the provided periods.

Revenues

Revenues exhibit a pattern of significant fluctuation over the quarters. Initially, revenue values are mostly stable but show a noticeable decline starting in early 2020, coinciding with a decrease from $20,877 million in December 2019 to $11,779 million by June 2020. This sharp drop likely reflects external impacts such as market conditions or operational disruptions. Following this trough, revenues begin to recover steadily, surpassing previous levels and reaching new highs by the end of 2024 and early 2025, with figures climbing to $24,690 million in December 2024 and $23,621 million in March 2025.

Gross Profit

Gross profit follows a broadly similar trend to revenues, initially strong with a peak of $7,843 million at the end of 2019. It declines substantially through mid-2020, with a low point of $3,694 million in October 2020, reflecting the revenue contraction. From late 2020 onwards, gross profit demonstrates a recovery trajectory, with incremental increases aggregated throughout 2021 and 2022. By the end of 2024 and early 2025, gross profit reaches new elevated levels, with $9,284 million recorded in December 2024 and $8,811 million in March 2025, indicating effective operational recovery and potential margin improvement.

Gross Profit Margin

Gross profit margin data begins from September 2019 and shows a gradual decline from approximately 39.6% down to a low near 29.85% in January 2021. This decreasing margin trend coincides with the time frame of reduced revenues and gross profit, suggesting pricing pressures or increased costs relative to sales. Post January 2021, the gross profit margin gradually improves in a consistent upward trend, reaching about 37.1% by March 2025. This recovery indicates enhanced cost management or a shift towards higher-margin revenue streams as business conditions normalize.

Overall, the data illustrates a dip in financial performance during early 2020, followed by a steady and sustained recovery in both revenue and profitability metrics. Margins, which fell during the downturn, exhibit a meaningful rebound towards improved profitability by the latest periods. The trends suggest resilience and adaptability in financial operations with evidence of regained profitability and growth momentum as external challenges abate.

The operating income exhibits notable fluctuations over the observed quarters. It started at a high point of $3,418 million in the quarter ending December 29, 2018, then experienced a general decline over subsequent periods, reaching a significant loss of $-4,996 million by June 27, 2020. This loss corresponds with the impact period likely related to external adverse conditions. From that lowest point, operating income gradually recovered, though it remained volatile, with values oscillating between positive and negative figures before stabilizing in more recent quarters with consistent positive income, peaking at $3,935 million on December 28, 2024.

Revenues also show variability but maintain an overall upward trend. Starting at $15,303 million in December 2018, revenues reached a peak of $23,819 million by January 1, 2022. The decline around mid-2020 aligns with the period of reduced operating income, reflecting a contraction in business activity. Post-2020, revenues recovered and exhibited a steady increase, concluding at $23,621 million by March 29, 2025.

The operating profit margin data, available for select periods, correlates with the trends in operating income and revenues. Margins declined sharply to negative values in mid-2020, reflecting losses experienced during that period. Starting from a low margin of -7.99% in July 2020, the margin improved steadily, moving back into positive territory by early 2021 and reaching above 12% by December 2024. This indicates an enhancing efficiency and profitability of operations relative to revenue.

Key Observations

1. The sharp decline in operating income and margin in mid-2020 represents a significant disruption, followed by a recovery trend thereafter.

2. Revenue, while affected during the same period, demonstrated resilience and growth in the long term.

3. Operating profit margins improved progressively post-crisis, suggesting successful cost control or revenue enhancement measures.

4. The recovery in operating income outpaced revenue growth in later periods, reflected in rising profit margins.

5. Fluctuations in income and margin prior to 2020 were less volatile but indicated a gradual weakening trend before the steep decline.

Trends in Net Income (Loss) Attributable to The Walt Disney Company

The net income figures exhibit considerable volatility over the reported periods. Initially, net income was strong, peaking at 5452 million USD in the March 2019 quarter. This was followed by a significant decline beginning in early 2020, with a pronounced loss recorded in the June 2020 quarter (-4721 million USD), coinciding with early pandemic impacts. Subsequent quarters show some recovery, with net income oscillating but generally improving from negative values, culminating in positive results towards the end of 2024 and into early 2025, reaching 3275 million USD in September 2024. Despite fluctuations, the overall trend suggests a recovery trajectory after the pandemic-associated downturn.

Trends in Revenues

Revenues have shown a more stable but still cyclical pattern compared to net income. After a peak of 20877 million USD in December 2019, a notable dip occurred in the first half of 2020, with the lowest revenue recorded at 11779 million USD in June 2020. This aligns temporally with the sharp decline in net income, indicating a period of operational challenge. Following this trough, revenues steadily increased, surpassing previous highs by early 2022 and maintaining elevated levels around 23000 million USD through 2023 and into 2024. This indicates a strong rebound and growth in top-line performance post-pandemic challenges.

Net Profit Margin Dynamics

Net profit margin data, available from mid-2019 onward, reflect the profitability fluctuations seen in net income. Margins peaked at 15.89% in June 2019 but then sharply contracted into negative territory by the first half of 2020, bottoming near -8.15% in the June 2020 quarter. Recoveries in profit margin have since been steady, with positive margins resuming in late 2020 and gradually strengthening to 9.47% by September 2024. The margin trends align closely with both revenue and net income patterns, underscoring the impact of operational challenges and subsequent recovery phases on profitability.

Overall Observations

The financial data reveal significant disruptions around early to mid-2020, consistent with external economic stressors likely related to global events during that period. Revenues and net income both experienced substantial decreases, with the net profit margin turning negative temporarily. From late 2020 onward, all key metrics demonstrate a recovery trend, with revenues and net income growing and profitability improving steadily. By 2024, the company appears to have regained strong financial performance, indicating effective management responses and improving market conditions.

Net Income (Loss) Attributable to The Walt Disney Company

The net income exhibits significant fluctuations across the observed periods. Initially, strong profits were recorded with peaks above 5 billion USD in early 2019. However, a substantial decline is noted starting in early 2020, with sharp losses during the mid-2020 quarters, reaching a low of approximately -4.7 billion USD, reflecting adverse operating conditions. Subsequent quarters reveal a recovery trend, with net income turning positive and generally improving through 2021 and 2022, showing variability but an overall upward movement. The last few quarters highlighted renewed volatility, with some negative results but trending toward stronger profitability again by 2024, culminating in net incomes above 3 billion USD near the end of the dataset.

Total Disney Shareholders' Equity

Shareholders' equity displays a consistent upward trajectory throughout the timeframe. Beginning at approximately 50 billion USD at the end of 2018, equity nearly doubles by early 2019 and maintains a generally increasing pattern despite minor fluctuations. A slight dip is observable around mid-2020 to late 2020, correlating with the period of net losses, but recovery and steady growth continue thereafter. By early 2025, equity reaches over 104 billion USD, indicating sustained capital accumulation and potentially retained earnings over the years.

Return on Equity (ROE)

Return on equity data, available intermittently, reflects variable profitability performance. Prior to 2020, ROE figures ranged from moderate positive values around 11-12%, indicating healthy returns on shareholders' investment. During 2020, ROE drops dramatically to negative values, reaching lows near -5.9%, consistent with severe net income losses. Thereafter, ROE recovers gradually but remains modest, fluctuating between approximately 1.3% and 4.9% through 2023 and 2024. The most recent data signal an improvement with ROE climbing toward 8.5%, suggesting enhanced operational efficiency and profitability relative to equity invested.

Net Income (Loss) Attributable to The Walt Disney Company

The net income figures demonstrate variability over the analyzed periods with noticeable fluctuations. Initial quarters show relatively strong profitability, peaking at 5,452 million USD in March 2019. However, a downward trend emerged towards mid-2020, with substantial losses recorded, including a low of -4,721 million USD in June 2020, reflecting a significant disruption. Following this trough, the net income recovered inconsistently, with moderate positive figures returning in 2021. More recently, from late 2022 through early 2025, net income shows a general upward trajectory with intermittent negative dips, culminating in a healthy level of 3,275 million USD by the end of the most recent quarter. This pattern indicates recovery and growth phases following a period of substantial losses.

Total Assets

Total assets have remained relatively stable throughout the examined quarters, fluctuating within a narrow range around 195,000 to 214,000 million USD. The highest recorded value appears in the first quarter of 2019, at 214,342 million USD. Subsequent quarters show slight declines and minor recoveries but no extreme volatility. The asset base stabilizes and maintains consistency, suggesting a steady capital position despite variation in profitability.

Return on Assets (ROA)

ROA data, available from mid-2019 onward, depicts an initial strong performance at 5.7% followed by a consistent decline reaching negative values between early 2020 and late 2020, reflecting operational challenges or extraordinary expenses during that timeframe. Starting in the first quarter of 2021, ROA recovers gradually, moving back into positive territory and demonstrating modest gains through 2023. This upward trend accelerates in 2024 and 2025, reaching 4.55% by the final quarter reported, indicating improved operational efficiency and effective utilization of assets to generate profits.

General Observations

The financial data reflect significant disruptions around 2020, impacting profitability and returns, likely linked to extraordinary external factors. The recovery phase is marked by improved net income and ROA, supported by a stable asset base. The variability in net income contrasts with asset stability, suggesting efforts to optimize asset utilization and return generation post-disruption. The gradual improvement in ROA indicates operational resilience and adapting financial management to restore profitability.