FIN 320 Project Two

For this project, I reviewed the information reported by The Walt Disney Company (DIS). For current ratio, we divide current liabilities from current assets. For working capital, we take the current assets and subtract the current liabilities. For debt ratio, we divide the total assets from the total liabilities. Earnings per share is figured out from the weighted average common shares outstanding divided from the net income. Price Earnings Ratio is the EPS divided from the Share Price at the end of the quarter. Total Asset turnover ratio is calculated by dividing the total assets from the total revenue. If you divide the shareholders equity from the total assets that will give you the Financial leverage. The net profit margin is calculated by dividing the total revenue from the net income. The return on assets is calculated by dividing the total assets from the net income. And the last item in the chart was the Return on equity which can be calculated by dividing the shareholders equity from the net income - preferred dividends. As you can see in the chart below, I have listed the most recent fiscal quarter, and compared to the same quarter last year. I have also charted the variance for the year over year comparison. Most Recent Fiscal Quarter Same Fiscal Quarter 1 year ago Variance Current Ratio 1.023384575 1.239047167 -0.215662592 Working Capital 718000 6553000 -5835000 Debt Ratio 0.216392093 0.215912294 0.000479799 Earnings Per Share 0.843346435 1.765861875 -0.922515441 Price Earnings Ratio 56.90285714 78.15315315 -21.25029601 Total Asset Turnover Ratio 0.105373541 0.107896806 -0.002523265 Financial Leverage 2.206205405 2.331319676 -0.12511427
Net Profit Margin 0.06984747 0.144140428 -0.074292958 Return on Assets 0.007360075 0.015552292 -0.008192217 Return on Equity 0.015232432 0.010583231 0.004649202 Based off of the calculations from reviewing the financial statements, I would say that this year DIS is doing better. While their earnings per share have dropped, I believe the pandemic had a large influence on last year's numbers. When things started to open up last year, I believe a large jump in the numbers was due to people trying to catch up from not being able to do anything prior. This year, things are slowing back down, not to a halt but to a prior pandemic normal. I expected to see some categories come in lower than the year prior. The debt ratio is slightly elevated but not by anything alarming. Their working capital increased which is great for their liability. The higher the working capital a company has shown that they have a better reliability to pay off their liabilities and debts. The Walt Disney company may have good and bad years like most companies but their longevity and ability to continue to change to keep up with the times will keep them as a household name for decades to come.
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