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The Financial Performance Of The Walt Disney Company Essay

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The Walt Disney Company (DIS) has a history marked with ups and downs. Taking numerous risks, expanding internationally, acquiring various businesses and diversifying its operations; the company has emerged stronger than ever. Ranking #53 on the Fortune 500, DIS has experienced continuous growth for the past 5 years, with bright prospects. Detailed analysis shows the market undervaluing the stock despite its healthy performance, indicating potential future gains.
This paper analyses the financial performance of the Walt Disney Company during FY’15 using profitability, liquidity, asset management, and debt management ratios, along with the DuPont system and a measure of Economic Value Added (EVA); and recommends purchase of the stock.
Background
DIS began operations nearly a century ago, in 1923. Beginning as the ‘Disney Brothers Cartoon Studio’ the company has evolved continuously, diversifying into an international mass media and entertainment conglomerate. Today, the company operates through five business segments:
• Media Networks: This segment includes cable and broadcast television networks, television production and distribution, domestic television stations, and radio networks and stations. It is the largest segment, contributing 44% to revenue, and 53% to operating profit.
• Parks and Resorts: The company owns and operates Parks and Resorts of various types, through various business models across the world - such as the Walt Disney World Resort in Florida; a Disney

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