Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Walt Disney Co., short-term (operating) activity 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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Walt Disney Co. inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Walt Disney Co. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Walt Disney Co. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Walt Disney Co. number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Walt Disney Co. number of days of receivables outstanding improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Walt Disney Co. operating cycle improved from 2019 to 2020 and from 2020 to 2021. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Walt Disney Co. number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Walt Disney Co. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |
Inventory Turnover
Walt Disney Co., inventory turnover 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) | |||||||
| Cost of revenues, exclusive of depreciation and amortization | 45,131 | 43,880 | 42,018 | 32,726 | 30,306 | 29,993 | |
| Inventories | 1,331 | 1,583 | 1,649 | 1,392 | 1,373 | 1,390 | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 33.91 | 27.72 | 25.48 | 23.51 | 22.07 | 21.58 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Alphabet Inc. | 94.82 | 116.39 | 71.97 | 53.79 | 60.86 | — | |
| Inventory Turnover, Sector | |||||||
| Media & Entertainment | 107.07 | 97.36 | 77.01 | 68.07 | 66.82 | — | |
| Inventory Turnover, Industry | |||||||
| Communication Services | 38.02 | 37.21 | 45.75 | 42.05 | 41.52 | — | |
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
Inventory turnover = Cost of revenues, exclusive of depreciation and amortization ÷ Inventories
= 45,131 ÷ 1,331 = 33.91
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Walt Disney Co. inventory turnover ratio improved from 2019 to 2020 and from 2020 to 2021. |
Receivables Turnover
Walt Disney Co., receivables turnover 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) | |||||||
| Revenues | 67,418 | 65,388 | 69,570 | 59,434 | 55,137 | 55,632 | |
| Receivables, net | 13,367 | 12,708 | 15,481 | 9,334 | 8,633 | 9,065 | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 5.04 | 5.15 | 4.49 | 6.37 | 6.39 | 6.14 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Alphabet Inc. | 6.55 | 5.90 | 6.39 | 6.57 | 6.05 | — | |
| Charter Communications Inc. | 20.04 | 21.85 | 20.55 | 25.18 | 25.43 | — | |
| Comcast Corp. | 9.69 | 9.03 | 9.65 | 8.51 | 9.89 | — | |
| Meta Platforms Inc. | 8.40 | 7.58 | 7.43 | 7.36 | 6.97 | — | |
| Netflix Inc. | 36.92 | 40.92 | 44.36 | 43.55 | — | — | |
| Twitter Inc. | 4.17 | 3.57 | 4.07 | 3.86 | 3.68 | — | |
| Receivables Turnover, Sector | |||||||
| Media & Entertainment | 7.75 | 7.32 | 7.37 | 7.91 | 7.95 | — | |
| Receivables Turnover, Industry | |||||||
| Communication Services | 7.98 | 7.44 | 7.28 | 7.17 | 7.88 | — | |
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
Receivables turnover = Revenues ÷ Receivables, net
= 67,418 ÷ 13,367 = 5.04
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Walt Disney Co. receivables turnover ratio improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Payables Turnover
Walt Disney Co., payables turnover 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) | |||||||
| Cost of revenues, exclusive of depreciation and amortization | 45,131 | 43,880 | 42,018 | 32,726 | 30,306 | 29,993 | |
| Accounts and accrued payables | 16,357 | 13,183 | 13,778 | 6,503 | 6,490 | 6,860 | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 2.76 | 3.33 | 3.05 | 5.03 | 4.67 | 4.37 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Alphabet Inc. | 18.38 | 15.16 | 12.93 | 13.60 | 14.53 | — | |
| Charter Communications Inc. | 43.48 | 39.23 | 37.18 | 36.75 | 35.87 | — | |
| Comcast Corp. | 3.09 | 2.91 | 3.18 | 3.50 | 3.67 | — | |
| Meta Platforms Inc. | 5.55 | 12.54 | 9.37 | 11.41 | 14.35 | — | |
| Netflix Inc. | 20.70 | 23.28 | 18.45 | 17.70 | 21.30 | — | |
| Twitter Inc. | 8.85 | 7.03 | 7.06 | 6.65 | 5.04 | — | |
| Payables Turnover, Sector | |||||||
| Media & Entertainment | 6.58 | 6.80 | 6.15 | 7.85 | 7.79 | — | |
| Payables Turnover, Industry | |||||||
| Communication Services | 5.12 | 4.98 | 4.83 | 5.27 | 5.16 | — | |
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
Payables turnover = Cost of revenues, exclusive of depreciation and amortization ÷ Accounts and accrued payables
= 45,131 ÷ 16,357 = 2.76
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Walt Disney Co. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021. |
Working Capital Turnover
Walt Disney Co., working capital turnover 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) | |||||||
| Current assets | 33,657 | 35,251 | 28,124 | 16,825 | 15,889 | 16,966 | |
| Less: Current liabilities | 31,077 | 26,628 | 31,341 | 17,860 | 19,595 | 16,842 | |
| Working capital | 2,580 | 8,623 | (3,217) | (1,035) | (3,706) | 124 | |
| Revenues | 67,418 | 65,388 | 69,570 | 59,434 | 55,137 | 55,632 | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 26.13 | 7.58 | — | — | — | 448.65 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Alphabet Inc. | 2.08 | 1.55 | 1.51 | 1.35 | 1.11 | — | |
| Charter Communications Inc. | — | — | — | — | — | — | |
| Comcast Corp. | — | — | — | — | — | — | |
| Meta Platforms Inc. | 2.59 | 1.42 | 1.38 | 1.28 | 0.91 | — | |
| Netflix Inc. | — | 12.78 | — | 4.93 | 5.31 | — | |
| Twitter Inc. | 0.77 | 0.56 | 0.51 | 0.54 | 0.52 | — | |
| Working Capital Turnover, Sector | |||||||
| Media & Entertainment | 3.92 | 2.74 | 3.19 | 2.98 | 2.59 | — | |
| Working Capital Turnover, Industry | |||||||
| Communication Services | 8.16 | 4.57 | 6.66 | 6.34 | 5.34 | — | |
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
Working capital turnover = Revenues ÷ Working capital
= 67,418 ÷ 2,580 = 26.13
2 Click competitor name to see calculations.
Average Inventory Processing Period
Walt Disney Co., average inventory processing period 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 | |||||||
| Inventory turnover | 33.91 | 27.72 | 25.48 | 23.51 | 22.07 | 21.58 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 11 | 13 | 14 | 16 | 17 | 17 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Alphabet Inc. | 4 | 3 | 5 | 7 | 6 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Media & Entertainment | 3 | 4 | 5 | 5 | 5 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Communication Services | 10 | 10 | 8 | 9 | 9 | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 33.91 = 11
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Walt Disney Co. number of days of inventory outstanding improved from 2019 to 2020 and from 2020 to 2021. |
Average Receivable Collection Period
Walt Disney Co., average receivable collection period 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 | |||||||
| Receivables turnover | 5.04 | 5.15 | 4.49 | 6.37 | 6.39 | 6.14 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 72 | 71 | 81 | 57 | 57 | 59 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Alphabet Inc. | 56 | 62 | 57 | 56 | 60 | — | |
| Charter Communications Inc. | 18 | 17 | 18 | 14 | 14 | — | |
| Comcast Corp. | 38 | 40 | 38 | 43 | 37 | — | |
| Meta Platforms Inc. | 43 | 48 | 49 | 50 | 52 | — | |
| Netflix Inc. | 10 | 9 | 8 | 8 | — | — | |
| Twitter Inc. | 88 | 102 | 90 | 95 | 99 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Media & Entertainment | 47 | 50 | 49 | 46 | 46 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Communication Services | 46 | 49 | 50 | 51 | 46 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.04 = 72
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Walt Disney Co. number of days of receivables outstanding improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021. |
Operating Cycle
Walt Disney Co., operating cycle calculation, comparison to benchmarks
No. days
| Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 11 | 13 | 14 | 16 | 17 | 17 | |
| Average receivable collection period | 72 | 71 | 81 | 57 | 57 | 59 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 83 | 84 | 95 | 73 | 74 | 76 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Alphabet Inc. | 60 | 65 | 62 | 63 | 66 | — | |
| Operating Cycle, Sector | |||||||
| Media & Entertainment | 50 | 54 | 54 | 51 | 51 | — | |
| Operating Cycle, Industry | |||||||
| Communication Services | 56 | 59 | 58 | 60 | 55 | — | |
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 cycle = Average inventory processing period + Average receivable collection period
= 11 + 72 = 83
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Walt Disney Co. operating cycle improved from 2019 to 2020 and from 2020 to 2021. |
Average Payables Payment Period
Walt Disney Co., average payables payment period 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 | |||||||
| Payables turnover | 2.76 | 3.33 | 3.05 | 5.03 | 4.67 | 4.37 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 132 | 110 | 120 | 73 | 78 | 83 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Alphabet Inc. | 20 | 24 | 28 | 27 | 25 | — | |
| Charter Communications Inc. | 8 | 9 | 10 | 10 | 10 | — | |
| Comcast Corp. | 118 | 125 | 115 | 104 | 100 | — | |
| Meta Platforms Inc. | 66 | 29 | 39 | 32 | 25 | — | |
| Netflix Inc. | 18 | 16 | 20 | 21 | 17 | — | |
| Twitter Inc. | 41 | 52 | 52 | 55 | 72 | — | |
| Average Payables Payment Period, Sector | |||||||
| Media & Entertainment | 55 | 54 | 59 | 46 | 47 | — | |
| Average Payables Payment Period, Industry | |||||||
| Communication Services | 71 | 73 | 76 | 69 | 71 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 2.76 = 132
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Walt Disney Co. number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level. |
Cash Conversion Cycle
Walt Disney Co., cash conversion cycle calculation, comparison to benchmarks
No. days
| Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | Sep 30, 2017 | Oct 1, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 11 | 13 | 14 | 16 | 17 | 17 | |
| Average receivable collection period | 72 | 71 | 81 | 57 | 57 | 59 | |
| Average payables payment period | 132 | 110 | 120 | 73 | 78 | 83 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | -49 | -26 | -25 | 0 | -4 | -7 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Alphabet Inc. | 40 | 41 | 34 | 36 | 41 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Media & Entertainment | -5 | 0 | -5 | 5 | 4 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Communication Services | -15 | -14 | -18 | -9 | -16 | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 11 + 72 – 132 = -49
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Walt Disney Co. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021. |