Financial Comparison of Walt Disney to its Peers
Walt Disney is one of the world’s premier entertainment companies that have exhibited excellent financial performance over the years. This is as a result of its performance compared to its peer companies such as Six Flags Entertainment Corporation, Columbia Broadcasting System (CBS) and Time Warner Company.
Walt Disney is liquid compared to its three peer companies named above. This is because the company’s total cash, being the measure of liquidity, has been higher than the other three companies, for example, since the year 2016. It was 4610 million in 2016, 4017 million in 2017, and 4150 million in 2018. All these figures are higher than those of its peers. Six Flags recorded total cash of 137.385, 77.496, and 44.608 million in 2016, 2017, and 2018 respectively. Times Warner recorded 62,657, 12,340 and 58,783 million in 2016, 2017 and 2018 respectively. These figures indicate that Walt Disney is more liquid than its peers.
The financial performance of Walt Disney shows that the company manages its assets effectively compared to its peers. This is because data indicates that the company has used its total assets in achieving higher revenue, gross and operating profits than those of its peers. For example, in 2018, the company had 59,434 million of total revenue, 26,708 million of gross profit, and 11,851 million of operating profit. All these figures are higher than those of Six Figures, which had 1463.707, 1341.904, and 524.488 million of total revenue, gross profit, and operating profit, respectively. Disney has quite a high debt load, which suggests that it has trouble paying its creditors. For example, in 2018, the company had a long term debt of 17,084 million, which is way too high than its net income of 12,598 million for the same year.
Disney has been profitable than its peers for a long time. Taking an example of the years 2018, 2017, and 2016, the company’s income statements have recorded net income of 12,598, 8,980, and 9,391 million, respectively. This is as compared to the lower figures of Six Figures, which were 275.996, 273.816, and 118.302 million for 2018, 2017, and 2016 respectively. More so, Disney’s net income for the three years has been high than that of CBS and Time Warner. This indicates that the company’s profitability has been higher than those of its peers.
I am willing to invest in the company stock. Having looked at Disney’s financial analysis for 2016, 2017, and 2018, I have realized that the company has been improving its net income performance over the years. It advanced from 118.302 million in 2016 to 273.816 million in 2017 and 275.996 million in 2018. Also, the Earnings per Share for investors increased from 1,280 in 1016 to 3,150 in 2017 and 3,280 in 2018. These constant improvements are incentives to new investors, and thus I would invest in the company’s stock.
This analysis has covered the financial performance of Walt Disney compared to those of Six Flags, CBS and Time Warner. It has examined the liquidity of the companies, asset management, and the profitability of Disney compared to its peers. It has also highlighted Disney’s Debt load and its possible trouble in paying its creditors.