Walt Disney Company (DIS)

Working capital turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	91,361,000	88,898,000	82,722,000	67,418,000	65,388,000
Total current assets	US$ in thousands	25,241,000	32,763,000	29,098,000	33,657,000	35,251,000
Total current liabilities	US$ in thousands	34,599,000	31,139,000	29,073,000	31,077,000	26,628,000
Working capital turnover		—	54.74	3,308.88	26.13	7.58

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $91,361,000K ÷ ($25,241,000K – $34,599,000K)
= —

The working capital turnover for Walt Disney Company has exhibited significant fluctuations over the past five years. In 2020, the working capital turnover was 7.58, which increased substantially to 26.13 in 2021. This increase suggests that the company was able to generate more revenue relative to its working capital in 2021 compared to the previous year.

However, in 2022, there was a significant spike in the working capital turnover to 3,308.88, reflecting a notable increase in efficiency in utilizing its working capital to generate revenue. This surge could be due to various factors such as tight control over inventory or efficient management of accounts receivables and payables.

The working capital turnover ratio dropped to 54.74 in 2023, indicating a decline in efficiency in utilizing working capital to generate sales compared to the prior year. This decrease may warrant further investigation to identify the reasons behind this drop and potential areas for improvement in capital management.

Without the working capital turnover figure for 2024, it is challenging to provide a comprehensive analysis for that year. However, based on the trend observed in the previous years, it is essential for Walt Disney Company to monitor its working capital turnover closely to ensure optimal utilization of its resources in generating revenue.