the walt disney land
Financial Analysis
---Walt Disney Company
Group members: Corti, Stacey; Dong, Lidan;
Pichakornpanya, Saranya; Zhong, Weisi
BUS 500D
Background
Financial Analysis
-----The Walt Disney Company Date Analysis
A. Liquidity ratios( Table 1-1)
The Disney Company has lower current ratio than industry average. So the liquidity of the company is high. For the quick ratio identify that the company has ability to pay off short term obligations without relying on the sale inventory.
Table 1-1
2011
2010
2009
Industry Average(2011)
COMMENT
Liquidity ratios
Current Ratio
1.14
1.11
1.33
1.46
poor Quick Ratio
2.71
2.54
2.85
6.26 poor
Current Ratio
The Disney Company had a lower current ration than industry average, which meant the Disney Company 's liquidity was low.
Quick Ratio
The quick ratio identified that Disney Company 's inventory took a low propotaion of total current assets. It meant Disney company had a strong ability to pay off short-term obligations and had a lower risk on the lost of obsolete inventory.
B. Asset management ratios (Table 1-2)
The inventory turnover is low than average, so the company holding too much inventory. The number of day sales outstanding is high, thus it effect to the Net operating working capital and free cash flow. The company is not effectively to use the plant and equipment. In addition, the total asset turnover is a little bit higher than average. It indicates that the company generating a sufficient volume of business.
Table 1-2
2011
2010
2009
Industry Average(2011)
COMMENT
Asset Management ratios
Inventory Turnover
25.64
26.40
28.44
68.7 poor Days Sales Outstanding
55.2
55.5
49.0
10 poor Fixed Asset Turnover
2.08
2.14
2.05
5.3 poor Total Asset Turnover
0.57
0.55
0.57
0.5 higher
Inventory Turnover
The inventory turnover was low than average, so the company
---Walt Disney Company
Group members: Corti, Stacey; Dong, Lidan;
Pichakornpanya, Saranya; Zhong, Weisi
BUS 500D
Background
Financial Analysis
-----The Walt Disney Company Date Analysis
A. Liquidity ratios( Table 1-1)
The Disney Company has lower current ratio than industry average. So the liquidity of the company is high. For the quick ratio identify that the company has ability to pay off short term obligations without relying on the sale inventory.
Table 1-1
2011
2010
2009
Industry Average(2011)
COMMENT
Liquidity ratios
Current Ratio
1.14
1.11
1.33
1.46
poor Quick Ratio
2.71
2.54
2.85
6.26 poor
Current Ratio
The Disney Company had a lower current ration than industry average, which meant the Disney Company 's liquidity was low.
Quick Ratio
The quick ratio identified that Disney Company 's inventory took a low propotaion of total current assets. It meant Disney company had a strong ability to pay off short-term obligations and had a lower risk on the lost of obsolete inventory.
B. Asset management ratios (Table 1-2)
The inventory turnover is low than average, so the company holding too much inventory. The number of day sales outstanding is high, thus it effect to the Net operating working capital and free cash flow. The company is not effectively to use the plant and equipment. In addition, the total asset turnover is a little bit higher than average. It indicates that the company generating a sufficient volume of business.
Table 1-2
2011
2010
2009
Industry Average(2011)
COMMENT
Asset Management ratios
Inventory Turnover
25.64
26.40
28.44
68.7 poor Days Sales Outstanding
55.2
55.5
49.0
10 poor Fixed Asset Turnover
2.08
2.14
2.05
5.3 poor Total Asset Turnover
0.57
0.55
0.57
0.5 higher
Inventory Turnover
The inventory turnover was low than average, so the company
References: Anual report.(2011). The walt disney company, n/a. Retrieved from http://thewaltdisneycompany.com/investors/financial-information/annual-report Disney stock analysis. (2006). Analyst Wire, , n/a. Retrieved from http://search.proquest.com/docview/463824186?accountid=25355 Financial.(2011). Yahoo! Finance, n/a. Retrieved from http://finance.yahoo.com/q/is?s=dis+Income+Statement&annual Roberts, J. L., Sloan, A., & Levinson, M. (1995, Aug 14). Disney 's world. Newsweek, 126, 20-21. Retrieved from http://search.proquest.com/docview/214231773?accountid=25355 The walt disney company: A comprehensive corporate analysis on the company. (2010, Jul 14). Business Wire, pp. n/a. Retrieved from http://search.proquest.com/docview/609270741?accountid=25355 The walt disney company. Hoovers, n/a. Retrieved from http://0-subscriber.hoovers.com.leopac.ulv.edu/H/company360/overview.html?companyId=11603000000000