... Walt Disney Company Financial Analysis Managerial Finance BUSA 302 Dr. Frederick Wolf May 24, 2007 Completed By: Shanna Baumgarten Michaela Baylous Laura Buckner Kari Gurtel Table of Contents: • Executive Summary . . . 3 • Background . . . 3 • Financial Statement Analysis . . . 5 o Balance Sheet . . . 5 o Income Statement . . . 8 o Cash Flow Statement . . . 9 • Ratio Analysis . . . 10 o Liquidity . . . 10 o Profitability . . . 12 o Activity . . . 12 o Leverage . . . 14 o Valuation . . . 15 • Sales Forecast . . . 15 o Projected Sales . . . 15 o Forecast Earnings . . . 17 o Pro Forma Statement . . . 17 o Sustainable Growth . . . 18 • Risk Assessment . . . 19 o Economic Conditions . . .20 o Changes in Consumer Demand & Preferences . . . 20 o Changes in Regulation . . . 21 o Intellectual Property Rights . . . 21 o Employee Costs . . . 21 o Pixar . . . 22 o Interest Rates . . . 22 o Foreign Exchange Rates . . . 22 o Restrictions on Trade . . . 23 o Taxes . . . 23 • Financial Restructuring . . . 23 • Recommendations to Management . . . 23 • References . . . 26 • Appendix . . . 27 Executive Summary: The Walt Disney Company Financial Analysis details the finances at The Walt Disney Company...
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...Financial Report on Walt Disney Company Financial Report on Walt Disney Company Introduction Walt Disney Company Walt Disney has been selected for analysizng the financial position for this assignements. The Walt Disney Company is regarded as the second largest and most utilzied entertainment and media companies after (TMC) Time Warner Company. The company was established on 16th October, 1923 by Roy Disney and Walt Disney. Throughout the years, it has emerged as one of the largest Hollywood studios and the American Broadcasting Company. The corporate headquarters of Walt Disney is in California. The company primary involves in the service manufacturing industry, books, computer games, animation and entertainment studios and network etc. The Walt Disney and its subsidiaries have been loyal and committed towards the company and its success. Walt Disney has a rich legacy of creative content and story telling that is exceptional. (Walt Disney,2012) The word Disney is a renowned word in the media business industry. It is known for the provision of entertainment to adults and young alike. It comprises of an international theme park and a huge animation studio for production. The Walt Disney dominates the entertainment industry. The Walt Disney Company is a diverse international company in the field of entertainment. It is a media enterprise and comprises of five primary business segments (SBU’s). These include entertainment studies, interactive...
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...Annual Report Analysis | The Walt Disney Company (DIS) | | Introduction In order to make the right investment decision, one must analyze the company of their interests. It is not wise to invest money on a company that is not doing well within their industry. On the other hand, if companies want your investments they must provide accurate, substantial evidence to show that you will make the right investment if you invest in them. Therefore, publicly traded companies publish their financial statements in their annual reports which investors can analyze use to make an investment decision. The Walt Disney Company is an entertainment company that is well known worldwide. The company was founded in Burbank, California in 1923 and became a public traded company in the 1950’s. The Walt Disney Company reports earnings on a quarterly and annual basis with their fiscal year ending on the first business day in the month of October of ever year. The company recently released their “Fiscal Year 2011 Annual Financial Report and Shareholder Letter,” which provides the company’s financial statement. With the annual report provided by the company and the analysis techniques learned from this course and other supporting evidence to analyze the financial position of The Walt Disney Company and determine if in fact the company would be a good investment option. Auditors’ Opinion The Walt Disney Co. auditors are PricewaterhouseCoopers LLP, an independent registered public accounting...
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...An Analysis of The Walt Disney Company 1 An Analysis of The Walt Disney Company Kendall Forward TELE 3310 October 29, 2013 An Analysis of The Walt Disney Company Overview & History 2 The Walt Disney Company is a leading American diversified multinational entertainment and mass media conglomerate, headquartered in Burbank California. Founded on October 16, 1923 by Walt Disney and his brother Roy as a small cartoon animation studio, the company struggled through years of unsuccessful creations but turned around after the debut of Mickey Mouse, the official mascot of the company. Now headed by CEO Robert Iger, Disney is one of the largest entertainment corporations in the world with approximately 166,000 employees and annual revenues approaching the $45 billion mark (Walt Disney). For eight decades, Walt Disney has entertained people around the world with its theme parks, resorts, cruises, movies, TV shows, radio programming, and memorabilia. Before diversifying into live-action film production, television and travel, the company established itself as a leader in the American animation industry. The company went public in 1940 and was reincorporated under its current name in 1986 and expanded operations and also started divisions focused on theatre, radio, music, publishing and online media (Cohesion Case). Mission Statement The mission of The Walt Disney Company is to be one of the world's...
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...Running Head: Financial Analysis Financial Analysis of Walt Disney Company Brittany ACC205 Professor 17 June 2013 Throughout this paper you as my reader are going to learn about my company, what they are all about including any type of competition they may be facing. You are also going to view the financial analysis of Walt Disney Co. which will include a horizontal analysis from three consecutive years, along with a ratio analysis which will be going over the current ratio, quick ratio and the cash to current liabilities ratio from a two year-period. First off let’s discuss what a horizontal analysis is before examining the analysis of Walt Disney Co. According to our text, “a horizontal analysis can be used to compare data from within two or more periods, side by side. In other words, it is intended to show the change in certain accounts from two separate accounting periods”(Walther, 2012). A horizontal analysis is good for investors, so they can look at the companies financial standing and see how they are doing when it comes to their income, and whether or not they are worth investing into as a company. This sort of analysis is very vital when it comes to investors, it should not be the answer to their decision on whether or not they should invest in a company, but it should give them some insight as to who well a company is doing financially. When it comes to Walt Disney Co, we are going to get some background information...
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...An#Analysis#of#The#Walt#Disney#Company# !1! An Analysis of The Walt Disney Company Kendall Forward TELE 3310 October 29, 2013 An#Analysis#of#The#Walt#Disney#Company# Overview & History !2! The Walt Disney Company is a leading American diversified multinational entertainment and mass media conglomerate, headquartered in Burbank California. Founded on October 16, 1923 by Walt Disney and his brother Roy as a small cartoon animation studio, the company struggled through years of unsuccessful creations but turned around after the debut of Mickey Mouse, the official mascot of the company. Now headed by CEO Robert Iger, Disney is one of the largest entertainment corporations in the world with approximately 166,000 employees and annual revenues approaching the $45 billion mark (Walt Disney). For eight decades, Walt Disney has entertained people around the world with its theme parks, resorts, cruises, movies, TV shows, radio programming, and memorabilia. Before diversifying into live-action film production, television and travel, the company established itself as a leader in the American animation industry. The company went public in 1940 and was reincorporated under its current name in 1986 and expanded operations and also started divisions focused on theatre, radio, music, publishing and online media (Cohesion Case). Mission Statement The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using...
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...Business Analysis Part III Glennyce J Nelson MGT-521 June 29, 2012 Dr. Olivia Herriford Business Analysis Part III For part III of the Business Analysis project, a review of the strategic initiatives taken by The Walt Disney Company relative to organizational and operational adaptations to the changing markets. An explanation of how recent economic trends are influencing the company, strategies Disney has used or could use for adapting to the changing markets. In addition, tactics Disney has implemented or could implement to achieve their strategic goals, the role human resources management plays in helping them achieve the goals, and would I be willing to invest in this company as a mutual fund manager. How Recent Economic Trends Are Influencing Disney. Even though the economy has been in a recession for the past couple years The Walt Disney Company has been doing well and shown continued growth. The company continues to show signs of being a healthy company as indicated by their continued increase in their net income Nelson (2012) “Disney’s income for 2011 and 2010 was $4,807 and $3,963 respectively, which represents a 21.30% increase.” (p. 4). In addition, the company had a net income of $3,307 in 2009, which represents a 19.84% increase for 2010. As shown in Figure A, Disney has shown growth in all areas of its financial statements during the past three years. Over all the company has not been significantly effected by the current economic downtrun and has...
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...Business Finance Professor Gordon 5 March 2015 The Walt Disney Company The Walt Disney Company started back on October 16, 1923, with the company being known as The Disney Brothers Studio, when Walt signed a contract with M.J. Winkler to produce a series called “Alice Comedies”. From here Walt had created many cartoons such as Oswald the Lucky Rabbit, Trolley Troubles, and Steamboat Willie. Steamboat Willie being the very first Mickey Mouse cartoons and also the debut of Minnie Mouse. Then in January of 1930 was the debut of Mickey Mouse comic strip following their first full-color cartoon in July of 1932. Over the next couple of years we had the debut of Donald Duck and a full color Mickey Mouse cartoon as well. Then on December 21, 1937 Disney release their first feature-length animated film Snow White and the Seven Dwarfs. However it wasn’t until December 26, 1939 did the Disney Studio move to Burbank, California did things start to pick up. In 1940 Walt Disney Productions issued their first stock and released their classic film Fantasia and by October of 1949 the Walt Disney Music Company was formed. Over the next couple of years the Disney Company released other films, such as Peter Pan, and on July 17, 1955 Disneyland Park officially opened to the public. Unfortunately, Walt Disney passed away on December 15, 1966 and was taking over by his older brother Roy O. Disney, who changed the company name to The Walt Disney Company, until he also passed away on December 20...
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...The Walt Disney Company MBA 648 Company Research Project Megan Burke, Candace Longo, Irini Pertesis Table of Contents Executive Summary3 Products and Services4 Financial Planning and Analysis6 Operating Performance of the Firm6 Financial Statement Analysis 7 Financial Forecasting………..………………………………………….…………………...11 Sustainable Growth Rate………...………………………………………………………....13 Additional Funds Needed…………………………………………………………………...13 Cost of Capital……………………………………………………………………………….14 WACC………………………………………………………………………………………..14 Dividends and Stock Policies………………………………………………………………….15 Objectives of Business Corporations 16 Working Capital Management: 19 Cash and Marketable Securities Management: 21 Accounts Receivable Management…………………………………………………………….26 Financing Activities…………………………………………………………………………...26 Overall Analysis………..……………………………………………………………………….27 Executive Summary “I knew if this business was ever to get anywhere, if this business was ever to grow, it could never do it by having to answer to someone unsympathetic to its possibilities, by having to answer to someone with only one thought or interest, namely profits. For my idea of how to make profits has differed greatly from those who generally control businesses such as ours. I have blind faith in the policy that quality, tempered with good judgment and showmanship, will win against all odds.”—Walt Disney...
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...Walt Disney and Marvel Entertainment Strategic Initiative Cynthia Morgan FIN/370 July 29, 2012 University of Phoenix Nicole L. Givens Strategic initiative plans allow organizations to identify initiatives and strategies to undertake and to accomplish the objectives and goals identified by the organization. The process for strategic initiative planning involves various steps. The steps include identifying the organizations opportunities, threats, strengths, weaknesses, creation of objectives and goals, development of tactics, strategies, use of measures, and processes to evaluate the results. Team A will discuss Walt Disney and Marvel Entertainment acquisition strategic planning initiative, identify an initiative Walt Disney discussed in their annual report, the effects the initiative will have on the organizations financial planning and the initiative will affect the organizations cost and sales. Walt Disney and Marvel Entertainment Strategic Initiative The initiative of strategic planning of Walt Disney, Team A will analyze the acquisition of Marvel Entertainment. Reports show that Walt Disney...
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...Financial Statement Review Elisha Cervantes ACC 561 Seth Fargen November 16, 2015 Financial Statement Review The Walt Disney Company is the corporation chosen for the financial statement review. The Walt Disney Company (Disney) “operates through five business segments: Media Networks, Parks & Resorts, Studio Entertainment, Consumer Products and Interactive Media” (Forbes, 2015, p. 1). These segments include television and cable networks, radio networks, Resorts, motion picture studios, and retail stores (Forbes, 2015). Walt Disney is one of the largest corporations and brands in the world. Net Income Walt Disney reported a net income of $8,004 million in 2014 and net income of $6,636 million in 2013 (The Walt Disney Company, 2014). The net income increased in 2014 compared to the net income in 2013. Investors of Walt Disney found the increase in net income important because it shows Walt Disney is increasing profits by making positive decisions for the company. Money-zine.com states, “Perhaps the single most important measure of a company's profitability is net income. That's because generating profits is the most important responsibility that for-profit companies have to their shareholders” (Money-zine.com, 2015, p. 1). Stakeholder’s Equity The ending balance of stockholders’ equity for Walt Disney in 2014 was $44,598 million. Labor unions are interested in the stockholders’ equity to sponsor "proposals that would increase their negotiating leverage...
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...Week 8 Financial Analysis of The Walt Disney Company Executive Summary The following report provides an analysis of the current and prospective profitability, and financial stability of The Walt Disney Company (Dis). The Walt Disney Company, together with its subsidiaries, “is a diversified worldwide entertainment company with operations in five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products and Interactive” (The Walt Disney Company Annual Report, 2013). The report will additionally examine three areas of financial strength; liquidity, leverage debt to equity ratio, and sustainable growth as well as summary descriptions of each business segment in order to fully understand the company’s profitability in the short and long run. Organizational Overview The Walt Disney Company was founded in 1922, and has become a world leader in family entertainment. Disney is operating on a multinational level under the direction of CEO, Robert A. Iger. The Company and its affiliated companies have remained faithful to their commitment to produce unparalleled entertainment experiences based on the rich legacy of quality creative content and exceptional storytelling. Each division under The Walt Disney Company’s umbrella provides distinct products and services and caters to diverse market segments. All divisions, however, are united in their creative and imaginative efforts to “reach hundreds of millions of people worldwide and...
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...Disney Financial Statement ACC/300 March 16, 2015 Prof Brandy Havens Disney Financial Statement Debt and Investments The Walt Disney Company reported debt in a number of ways on their financial statements. The first place debt securities are shown is under Current Liabilities on the Consolidated Balance Sheet. The Current Portion of Borrowings, at $2,342 billion, lists that portion of debt that is due to be paid within the next year. The second place that debt appears on the Consolidated Balance Sheet is under Borrowings. Disney shows over $12.676 billion in long-term debt. Therefore, Disney’s total borrowings are approximately $14.8 billion. Upon further analysis, nearly 92% of Disney’s debt includes the issuance of U.S. medium-term notes with a weighted-average coupon rate of 2.73% and maturities that occur from 2015 through 2023. Additionally, Disney indicates another $5.9 billion in other long-term liabilities. According to Disney’s 10k filing, “Other long-term borrowing instruments are omitted pursuant to Item 601(b)(4)(iii) of Regulation S-K. The Company undertakes to furnish copies of such instruments to the Commission upon request” (The Walt Disney Company. 2014). The balance sheet also shows Investments as part of the reporting of Assets. For the fiscal year ended 2014, Disney reported $2.696 billion in investments. Nearly 92% of the investments are shown as “Equity Basis” investments. More specifically, Disney reports that the equity investments...
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...SHANGHAI DISNEY: MILESTONE JOINT VENTURE Rita Lemoine Southern New Hampshire University Abstract This paper examines the significant collaborative efforts of both a U.S. multi-national corporation, The Walt Disney Company and its foreign socialistic counterpart, the Shanghai Shendi Group, Ltd. negotiation of an Equity International Joint Venture agreement. The paper will disclose the joint venture agreement, the financial structure, and funding arrangements for the construction of the Shanghai Disney Resort. Then a SWOT analysis will demonstrate the strengths, weaknesses, opportunities, and threats that could affect The Disney Company’s operations in China according to current economic, political, and legal policies regarding foreign joint ventures. Finally, an assessment of the cultural differences between the two companies in the form of managerial and leadership styles that could hinder the success of this joint venture. Keywords: Equity International Joint Venture, SWOT analysis, Cultural Dimensions SUMMARY OF THE WALT DISNEY COMPANY The Walt Disney Company, the leading producer of family entertainment for the past nine decades, beginning in October 16, 1923 when Walter Elias Disney “signed a contract with M.J. Winkler to produce” a series of cartoons, the early stages of The Disney Brothers Studios, founded by Walter Elias and Roy O. Disney. (Retrieved from “http://thewaltdisneycompany.com/about-disney/disney-history/1920-01-01--1929-12-31”). The...
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...The Walt Disney Company June18, 2014 International Management Table of Contents Abstract 3 The Walt Disney Company 4 Board of Directors 4 Chairman and CEO 5 Mission/Vision Statement 5 Disney History 6 Disney Divisions 9 Media Networks 9 Parks and Resorts 10 The Walt Disney Studios 10 Disney Consumer Products 11 Disney Interactive 11 Walt Disney Company Goals and Objectives 11 Corporate Culture 12 PEST Analysis 13 SWOT Analysis 14 References 17 Abstract This paper is designed to present an overview of the Walt Disney Company. It covers it mission/vision, company history and culture and a breakdown of the various division of the company as a whole. This breakdown is extensive and highlights the world wide interests of this company. Also covered will be what the goals are of The Walt Disney Company and how it see’s for its future. Also provided is a SWOT and PEST analysis. Finally, there is a conclusion as well as recommendations to the company. The Walt Disney Company The Walt Disney Company is a leading diversified international family entertainment and media enterprise with five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media. The company has subsidiaries and affiliates around the world including North America, South America, Europe, Middle East, Africa, Russia, Asian Pacific, and Japan. Board of Directors Walt Disney Company is a publicly held...
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