Walt Disney Company (DIS)
Pretax margin
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,733,000 | 4,877,000 | 2,020,000 | -2,165,000 | 14,080,000 |
| Revenue | US$ in thousands | 88,898,000 | 82,722,000 | 67,418,000 | 65,388,000 | 69,607,000 |
| Pretax margin | 4.20% | 5.90% | 3.00% | -3.31% | 20.23% |
September 30, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $3,733,000K ÷ $88,898,000K
= 4.20%
The pretax margin, also known as the pre-tax profit margin, is a profitability ratio that measures a company's ability to generate profits before accounting for taxes. A higher pretax margin indicates greater profitability relative to total revenue, while a lower pretax margin may suggest reduced profitability.
Walt Disney Co (The) has displayed fluctuations in its pretax margin over the past five years. In 2019, the company reported a robust pretax margin of 20.04%, reflecting strong profitability. However, in 2020, the pretax margin turned negative, indicating that the company incurred losses before considering taxes, which is a concerning sign for investors.
The following years saw mixed performance, with the pretax margin standing at 3.80% in 2021, improving to 6.39% in 2022, and then dropping to 5.36% in 2023. This pattern indicates some inconsistency in the company's ability to generate profits before taxes. Investors may be concerned about the company's ability to effectively control expenses and maintain profitability, given the fluctuating pretax margins.
Overall, the pretax margin trend for Walt Disney Co (The) shows variability and highlights the need for ongoing scrutiny of the company's financial management and cost control strategies to ensure steady and sustainable profitability.
Peer comparison
Sep 30, 2023