![]() During Christmas season and summer, a substantial amount of revenue is acquired from the theme parks, and it explains high profitability of the business during Q2 and Q4. Meanwhile, the low values in Q1 and Q3 have a direct correlation with the seasonality of the business. All graphs show a similar pattern with peaks of its revenues in Q2 and Q4. Earnings per share ratio.Īs for the profitability ratios, Figures 11-15 show stability. Overall, its stability occurs due to the fact that the company has a steady income from different spheres, and these matters increase the company’s revenues while ensuring its profitability. In this case, DIS should focus on increasing its recognition and attracting additional shareholders. Speaking of the asset to equity ratio, it also experiences a slight upward shift, and it pertains to the fact that the company is stable in issuing its common shares. In this case, the upward shift in all graphs implies that the company has a stable number of assets while its revenues continue to increase. Asset to equity ratio.Īs for the asset ratios of the company, Figures 7, 8, 9 tend to portray similar tendencies. 6 As for operating ratio, its slight rising tendency can be regarded as negative, as the company has to aim toward decreasing its operational expenses. In the case of the cash ratio, it is positive, as it implies that company’s cash inflows continue to increase. Both operating and cash ratios experience upward trends (Figure 5 and Figure 6). The company has to pay vehement attention to these aspects, as, otherwise, it will not be able to pay short and long-term debts. In turn, Figure 4 states that the current liabilities to inventory ratio experiences a positive movement due to a substantial increase in the liabilities used for expansion. For instance, its value was 0.1 in Q1 and Q3, and these changes can pertain to the shift in current liabilities while questioning the ability of the company to pay short-term debt. Furthermore, Figure 3 opines that net working capital ratio experiences an adverse tendency. ![]() The slight differences in its values may pertain to the rise of prices of inventories and negative changes in the value of current liabilities. In turn, Figure 2 shows that quick ratio is also constant. Current liabilities to inventory.įigure 1 displays that current ratio is stable, but it may experience minor downward changes due to continuous fluctuations in the value of liabilities. Summary of the ratios for Disney Company.3, 4, 5 Analysis of Financial TrendsĪs it was mentioned earlier, the computations depicted in Table 1 help depict the most common tendencies that reflect company’s development and operations. In this case, Table 1 presents the calculations of all ratios for conducting the analysis for DIS. Different types of ratios were used to assess company’s financial performance and compare it to the competitors in the subsequent sections. In the first place, to evaluate the company’s financial performance, it is critical to compute financial data. ![]() After that, it was imported into the Word document to conduct the sufficient analysis of trends and financial performance of DIS. Excel template was utilized to enter and compose the required calculations. ![]() These websites were selected, as they have the most profound and easy-to-use information about financial services. To assess the firm’s performance, information was gathered from Yahoo Finance, MSI Finance, and MorningStar. Consequently, the primary goal of the paper is to compute financial ratios, analyze tendencies, compare operations of DIS to SIX (taken as industry standards), conduct SWOT and ethics analysis, and depict the main decisions and conclusions. To assess the company’s current position in the market, its financial performance in the form of ratios and trends is compared with the company’s close competitors, Six Flags Entertainment Corporation (SIX). ![]()
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