The Walt Disney Company, commonly known as “Disney”, founded on 16 October, 1923 by Walt Disney and Roy Disney (elder brother of Walt) as the “Disney Brothers Cartoon Studio” is the largest media conglomerate in the world in terms of revenue. The company together with its subsidiaries is a diversified worldwide entertainment company. The company operates in five main segments: Studio Entertainment, Media Networks, Consumer Products, Parks and Resorts and Consumer Products and Interactive.

The Company has major interest in the following significant businesses:

  • 51% effective ownership interest in Disneyland Paris,
  • Approximately 20 miles east of Paris, a 5,510-acre development located in Marne-la-Vallee
  • 48% interest in Hong Kong Disneyland Resort through Hongkong International Theme Parks Limited.
  • 40% equity interest in Euro Disney S.C.A

On November 7, 2012, Disney sold its 50% interest in ESPN STAR Sports and acquired Lucas film Ltd. LLC on December 21, 2012.

Here is a synopsis of few recent key financial facts of the company:

Profitability Profit Margin (TTM) 13.62%
  Operating Margin(TTM) 21.20%
Income Revenue (TTM) 45.04 Billion
  Revenue per Share $25.13
  Gross Profit (TTM) 9.45 Billion
  Quarterly Revenue Growth(YoY) 7.30%
  Net Free Income (TTM) 6.14 Billion
Balance Sheet Current Ratio (Most Recent Quarter) 1.21
  Book Value per Share (Most Recent Quarter) $25.62
Management Return on Equity (TTM) 14.73%
  Return on Assets (TTM) 7.65%

Most Recent Quarter is September 28, 2013; TTM indicates “Trailing Twelve Months” (As of Sep 30, 2013)

Annual Sales, Annual Revenue, Annual Profits

Year over year, The Disney Company has been able to grow at a consistence pace in terms f revenue. The growth in revenue over the previous year 2012 was by 6.53%. The gross profit percent in last four year ends since 2010 till 2013 were 17.70%, 19.0%, 21.25 % and 21.20% (see the table below on Financial Performance).

Amount in Million US$ Sep 28 2013 Sep 29, 2012 Oct 01, 2011 Oct 02, 2010
Revenues 45,041.0 42,278.0 40,893.0 38,063.0
Total Revenues 45,041.0 42,278.0 40,893.0 38,063.0
Cost Of Goods Sold 35,491.0 33,294.0 33,112.0 31,337.0
Gross Profit 9,550.0 8,984.0 7,781.0 6,726.0
Operating Income 9,550.0 8,984.0 7,781.0 6,726.0
Interest Expense -349.0 -472.0 -435.0 -456.0
Interest And Investment Income 114.0 103.0 92.0 47.0
Other Non-Operating Expenses, Total 688.0 627.0 585.0 440.0
Merger & Restructuring Charges -214.0 -100.0 -55.0 -248.0
Gain (Loss) On Sale Of Investments 219.0 184.0 75.0
Gain (Loss) On Sale Of Assets 33.0 75.0 43.0
Other Unusual Items, Total -421.0 -66.0
EBT, Including Unusual Items 9,620.0 9,260.0 8,043.0 6,627.0
Income Tax Expense 2,984.0 3,087.0 2,785.0 2,314.0
Minority Interest In Earnings -500.0 -491.0 -451.0 -350.0
Earnings From Continuing Operations 6,636.0 6,173.0 5,258.0 4,313.0
Net Income 6,136.0 5,682.0 4,807.0 3,963.0
Net Income To Common Including Extra Items 6,136.0 5,682.0 4,807.0 3,963.0
Net Income To Common Excluding Extra Items 6,136.0 5,682.0 4,807.0 3,963.0

 

Financial Performances:

The company has become able to improve its interest coverage ratio to 28.62 from earlier 20.62. The company has become able to maintain a consistent performance over past years. Operating income has grown to $9236 million from $6456 million of 2010. Walt Disney Co started an internal cost-cutting review in the end of 2012 that included layoffs at its studio and other units. The revenue of the year is projected at $45,041 million. Most impressively, the company has been able to reduce the percentage of sales devoted to income tax expense from 6.71% to 5.89%. This led to a bottom line growth from $1.284 Billion to $1.441 Billion.

          TTM

Sep 2013

Sep 2012

Sep 2011

Sep 2010

Revenue USD Millions

45,041

45,041

42,278

40,893

38,063

Gross Margin %

21.20

21.20

21.25

19.0

17.7

Operating Income USD Mil

9,236

9,236

8,763

7,726

6,456

Operating Margin %

20.5

20.5

20.7

18.9

17.0

Net Income USD Millions

6,136

6,136

5,682

4,807

3,963

Earnings Per Share USD

3.38

3.38

3.13

2.52

2.03

Dividends USD

0.75

0.75

0.60

0.40

0.35

Payout Ratio %

22.2

22.2

19.2

15.9

17.2

Shares Millions

1,813

1,813

1,818

1,909

1,948

Book Value Per Share USD

25.85

25.24

22.09

20.14

19.62

     PROFITABILITY

 

 

 

 

 

Tax Rate %

31.02

31.02

33.34

34.63

34.92

Net Margin %

13.62

13.62

13.44

11.76

10.41

Asset Turnover (Average)

0.58

0.58

0.58

0.58

0.58

Return on Assets %

7.86

7.86

7.73

6.80

5.99

Financial Leverage (Average)

1.85

1.79

1.88

1.93

1.84

Return on Equity %

14.41

14.41

14.73

12.84

11.12

Return on Invested Capital %

10.31

10.31

10.13

8.88

7.57

Interest Coverage

28.56

28.56

20.62

19.49

15.53

 

 

 

 

 

 

Disney Quarterly Earnings

The company reported earnings of $1.03 per share for its third quarter ending; it was less than the consensus estimate of $1.07. For the current financial year the analysts are expecting earnings of $3.45 per share while the revenue is projected at $11.65 billion for the quarter which is more by 5% of the last year figure of $11.09 billion.

The company is harvesting profit for the past eight years with a consistent growth rate around 4% in profit year-over-year. The biggest gain came in the third quarter of the year at $1,847.0 million.

Amount in Million US$ Sep 28, 2013 June 29,  2103 March 30, 2013 Dec 29, 2012
Revenues 11,568.0 11,578.0 10,554.0 11,341.0
Total revenues 11,568.0 11,578.0 10,554.0 11,341.0
Cost of goods sold 9,309.0 8,574.0 8,359.0 9,249.0
Gross profit 2,259.0 3,004.0 2,195.0 2,092.0
Operating income 2,259.0 3,004.0 2,195.0 2,092.0
Interest expense -81.0 -93.0 -83.0 -92.0
Interest and investment income 55.0 10.0 29.0 20.0
Other non-operating expenses, total 151.0 232.0 195.0 110.0
Other non-operating income (expenses) -10.0 10.0
Merger & restructuring charges -93.0 -60.0 -61.0
Gain (loss) on sale of investments 0.0 219.0
Gain (loss) on sale of assets 33.0
Other unusual items, total -100.0 -321.0
EBT, including unusual items 2,224.0 3,093.0 2,275.0 2,028.0
Income tax expense 681.0 1,059.0 654.0 590.0
Minority interest in earnings -149.0 -187.0 -108.0 -56.0
Earnings from continuing operations 1,543.0 2,034.0 1,621.0 1,438.0
Net income 1,394.0 1,847.0 1,513.0 1,382.0
Net income to common including extra items 1,394.0 1,847.0 1,513.0 1,382.0
Net income to common excluding extra items 1,394.0 1,847.0 1,513.0 1,382.0