Walt Disney Company (DIS)

Working capital turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	88,898,000	82,722,000	67,418,000	65,388,000	69,607,000
Total current assets	US$ in thousands	32,763,000	29,098,000	33,657,000	35,251,000	28,124,000
Total current liabilities	US$ in thousands	31,139,000	29,073,000	31,077,000	26,628,000	31,341,000
Working capital turnover		54.74	3,308.88	26.13	7.58	—

September 30, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $88,898,000K ÷ ($32,763,000K – $31,139,000K)
= 54.74

The working capital turnover ratio measures how well a company utilizes its working capital to generate sales revenue. Walt Disney Co's working capital turnover has fluctuated significantly over the past five years.

In 2023, the working capital turnover was 54.74, indicating that the company generated $54.74 in sales for every $1 of working capital. This is a substantial increase from the previous year when the ratio was 3,308.88, which suggests an anomaly or a major change in the working capital structure that should be investigated further.

In 2021, the ratio was 26.13, showing a strong performance in using working capital to generate sales. In 2020, the ratio was 7.58, indicating that for every $1 of working capital, the company generated $7.58 in sales. Unfortunately, there is no data for 2019 to provide additional context.

The significant fluctuations in the working capital turnover ratio over the past few years suggest potential changes in the company's working capital management strategies or business operations, and this may warrant further investigation to understand the reasons behind these fluctuations.