Walt Disney Company (DIS)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 77.52% | 76.75% | 77.54% | 75.89% | 68.88% |
| Operating profit margin | 17.08% | 14.47% | 14.65% | 11.52% | 12.40% |
| Pretax margin | 7.41% | 4.20% | 5.90% | 3.00% | -3.31% |
| Net profit margin | 5.44% | 2.65% | 3.80% | 2.96% | -4.38% |
Walt Disney Company's profitability ratios have shown improvements over the past five years. The gross profit margin has remained relatively stable, ranging from 68.88% in 2020 to 77.54% in 2022. This indicates that the company has effectively managed its production costs and pricing strategies to generate higher gross profits.
The operating profit margin has also shown an upward trend, increasing from 12.40% in 2020 to 17.08% in 2024. This suggests that Disney has been successful in controlling its operating expenses and improving operational efficiency to generate higher profits from its core business activities.
The pretax margin has experienced significant fluctuations, with a notable improvement from -3.31% in 2020 to 7.41% in 2024. This indicates that Disney has been able to enhance its profitability before accounting for taxes through better cost management and revenue generation strategies.
The net profit margin, which reflects the company's bottom line profitability, has also shown positive growth, increasing from -4.38% in 2020 to 5.44% in 2024. This improvement demonstrates Disney's ability to generate more profits after accounting for all expenses, including taxes and interest payments.
Overall, Walt Disney Company's profitability ratios reflect a positive trend, indicating effective cost management, operational efficiency, and revenue generation strategies that have contributed to improved profitability over the analyzed period.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.95% | 6.26% | 5.95% | 3.81% | 4.02% |
| Return on assets (ROA) | 2.53% | 1.15% | 1.54% | 0.98% | -1.42% |
| Return on total capital | 3.36% | 1.24% | 2.37% | 0.35% | -0.38% |
| Return on equity (ROE) | 4.94% | 2.37% | 3.31% | 2.25% | -3.43% |
The profitability ratios of Walt Disney Company have shown a positive trend over the past five years, indicating an improvement in the company's ability to generate profits from its assets and capital.
- Operating return on assets (Operating ROA) has steadily increased from 4.02% in 2020 to 7.95% in 2024, reflecting the company's efficiency in generating operating income relative to its total assets.
- Return on assets (ROA) has also shown a positive trend, moving from a negative value of -1.42% in 2020 to 2.53% in 2024. This ratio indicates the company's ability to generate profits from its total assets.
- Return on total capital has improved significantly from -0.38% in 2020 to 3.36% in 2024, suggesting that the company's profitability in relation to its total capital employed has increased over the years.
- Return on equity (ROE) has shown a similar upward trend, rising from -3.43% in 2020 to 4.94% in 2024. This ratio demonstrates the company's ability to generate returns for its shareholders on their equity investments.
Overall, the increasing trend in profitability ratios indicates that Walt Disney Company has been successful in improving its operational efficiency and profitability in recent years, which may be seen as a positive signal by investors and stakeholders.