Walt Disney Company (DIS)

Return on assets (ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	2,354,000	3,145,000	1,995,000	-2,864,000	11,054,000
Total assets	US$ in thousands	205,579,000	203,631,000	203,609,000	201,549,000	193,984,000
ROA		1.15%	1.54%	0.98%	-1.42%	5.70%

September 30, 2023 calculation

ROA = Net income ÷ Total assets
= $2,354,000K ÷ $205,579,000K
= 1.15%

Walt Disney Co (The) has witnessed fluctuations in its return on assets (ROA) over the past five years. The ROA decreased from 5.70% in September 2019 to -1.42% in October 2020, indicating a sharp decline in the company's ability to generate profits from its assets. However, in the subsequent years, the ROA showed signs of recovery, reaching 0.98% in October 2021 and 1.54% in October 2022, demonstrating an improvement in asset utilization and profitability. Nonetheless, in September 2023, the ROA declined further to 1.15%.

The declining ROA in 2020 suggests potential inefficiencies in asset management and a reduced ability to generate earnings from the available assets. However, the subsequent upward trend in 2021 and 2022 indicates efforts to enhance asset efficiency and profitability. The decrease in ROA in 2023 may raise concerns about the company's ability to maintain profitability from its assets. It is advisable for stakeholders to monitor the company's asset management strategies and operational efficiency to ensure sustainable returns in the future.