Walt Disney Company (DIS)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Inventory turnover	18.28	18.32	18.82	18.18	10.17	10.67	11.44	12.13	12.60	12.21	11.17	13.77	13.15	12.85	13.82	11.54	13.86
Receivables turnover	6.30	7.21	6.70	6.81	6.03	6.54	5.93	5.57	4.90	5.04	4.76	4.66	4.32	5.15	5.53	5.39	4.40
Payables turnover	—	2.38	—	—	—	1.15	—	—	—	0.99	—	—	—	1.54	—	—	—
Working capital turnover	—	54.74	45.26	420.20	—	3,308.88	112.96	41.96	25.38	26.13	9.70	9.36	7.30	7.58	6.70	—	—

The activity ratios of Walt Disney Company provide insights into its operational efficiency and management of resources.

1. Inventory turnover: The inventory turnover ratio has been consistently high, indicating that Disney is effectively managing its inventory levels by quickly converting goods into sales. This implies strong demand for its products and efficient inventory management.

2. Receivables turnover: The receivables turnover ratio fluctuates but generally shows that Disney is efficient in collecting payments from customers, with a healthy turnover rate. This indicates effective credit management and swift collection processes.

3. Payables turnover: The data for payables turnover is sporadic and incomplete, making it difficult to draw firm conclusions. However, an increasing trend in payables turnover could suggest that Disney is paying its suppliers more promptly.

4. Working capital turnover: The working capital turnover ratio fluctuates significantly, indicating varying levels of efficiency in generating revenue relative to the company's working capital. The extremely high ratio in the March 2023 period stands out, suggesting a particularly efficient utilization of working capital during that time.

Overall, Walt Disney Company's activity ratios reflect well-managed operations and efficient utilization of resources, contributing to its overall financial health and performance.

Average number of days

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Days of inventory on hand (DOH)	days	19.97	19.92	19.39	20.07	35.90	34.22	31.90	30.10	28.98	29.88	32.69	26.51	27.76	28.41	26.42	31.63	26.33
Days of sales outstanding (DSO)	days	57.93	50.62	54.50	53.59	60.50	55.83	61.59	65.48	74.42	72.37	76.66	78.40	84.41	70.94	66.00	67.76	83.02
Number of days of payables	days	—	153.48	—	—	—	318.31	—	—	—	367.25	—	—	—	236.63	—	—	—

Analyzing the activity ratios of Walt Disney Company over the past few quarters reveals some important trends.

Days of Inventory on Hand (DOH) have shown a general decreasing trend from 35.90 days in Dec 2022 to 19.97 days in Dec 2023. This indicates that Disney has been more efficient in managing its inventory levels, potentially reducing storage costs and minimizing excess inventory risk.

Days of Sales Outstanding (DSO) have fluctuated over the quarters but have generally decreased from 84.41 days in Dec 2020 to 57.93 days in Dec 2023. This suggests that the company has been collecting receivables more quickly, improving its cash flow and reducing the risk of bad debt.

The number of days of payables is not available for most quarters; however, there are two data points indicating a relatively long payment period of 318.31 days and 367.25 days in Sep 2022 and Sep 2021, respectively. This suggests that Disney has been taking longer to pay its suppliers, potentially improving its liquidity position in the short term.

Overall, the improving trends in inventory management and receivables collection, along with the relatively longer payables period, reflect effective working capital management by Walt Disney Company. However, it is important for the company to monitor and optimize these metrics continuously to enhance operational efficiency and maintain a healthy cash position.

Long-term

	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Fixed asset turnover	2.52	2.54	2.54	2.52	2.47	2.46	2.42	2.33	2.23	2.07	1.96	1.82	1.88	2.04	2.19	2.43	2.36
Total asset turnover	0.45	0.43	0.43	0.42	0.42	0.41	0.40	0.38	0.36	0.33	0.31	0.29	0.30	0.32	0.34	0.38	0.37

Walt Disney Company's fixed asset turnover ratio has been relatively stable over the past five quarters, ranging from 2.23 to 2.54. This indicates that for every dollar invested in fixed assets, the company is generating between $2.23 and $2.54 in revenue. It suggests that Disney is efficiently utilizing its fixed assets to generate sales.

In terms of total asset turnover, the ratio has shown a slight upward trend over the same period, increasing from 0.30 to 0.45. This indicates that for every dollar of total assets, the company is generating between $0.30 and $0.45 in revenue. The upward trend suggests that Disney is becoming more efficient in utilizing all its assets to generate sales.

Overall, the analysis of Walt Disney Company's long-term activity ratios suggests that the company is effectively managing its assets to generate revenue, both in terms of fixed assets and total assets.