Disney is one of the most sought-after stocks in the world. The company’s legendary founder, Walt Disney, is world-renowned. Disney Inc. continues to innovate and disrupt their industry under the current leadership of Robert Iger. These circumstances have resulted in the organization becoming an industry leader. For some, these facts alone are reason enough to buy stock in the company.
However, most investors prefer to have an in-depth understanding of the company’s financial statements and financial ratios before investing in the firm. Through a well-rounded understanding of Disney’s financial standing, investors may make better, more informed investment decisions. Further, predicting the company’s future performance may very well be possible. This leads to the purpose of the book. This book was written to help investors, business students, finance students, and accounting students use basic and advanced accounting and finance concepts to analyze Disney’s last five years' financial statements, financial ratios, and possible future projections. Book and Chapter Structures Disney Company Summary - In the company summary, a brief overview of Disney’s current state is introduced. Topics covered include Disney’s 52-week stock prices, dividend policy, and more. Disney Financial Statements – The financial statement sections start with a summarized version of Disney’s income statement and balance sheet for the last five years. Following the financial statements is a brief financial analysis of each statement’s highlights. With this foundation set, we then define, graph, and offer analysis tips about each financial statement line item, such as revenues and long-term debt. Disney Financial Ratios – Regarding Disney’s financial ratios, a similar approach is taken as with the financial statements. This section starts with the financial ratios calculated for five years and a summary analysis of important financial ratios. Each financial ratio is then defined, formulas provided, calculations for the ratios illustrated, financial analysis tips offered, and the actual individual ratio graphed, covering a five-year time frame, in most cases. Important financial ratios defined, calculated, and analysis tips offered includes the current ratio, cash ratio, quick ratio, net working capital ratio, total asset turnover ratio, fixed asset turnover ratio, days sales outstanding, inventory turnover, accounts receivable turnover, working capital turnover, accounts payable turnover, return on assets, return on equity, profit margin, gross profit margin, and several more. Disney Free Cash Flows (FCF) and 5 Year Projections - We conclude the financial review of Disney by projecting their summarized income statement, balance sheet, and free cash flows for the NEXT 5 years. In the end, hopefully, you will have a better understanding of Disney’s financial statements, financial ratios, free cash flows (FCF), and financial projections in general. Further, you will also, again, hopefully, have a thorough understanding of Disney’s financial position, now and in the future, based on the reviews and brief analysis provided.