Walt Disney Company (DIS)

Return on equity (ROE)

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Net income	US$ in thousands	4,972,000	2,354,000	3,145,000	1,995,000	-2,864,000
Total stockholders’ equity	US$ in thousands	100,696,000	99,277,000	95,008,000	88,553,000	83,583,000
ROE		4.94%	2.37%	3.31%	2.25%	-3.43%

September 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $4,972,000K ÷ $100,696,000K
= 4.94%

The return on equity (ROE) for Walt Disney Company has shown a fluctuating trend over the past five years. In 2024, the ROE stands at 4.94%, representing an improvement from the previous year's ROE of 2.37%. This increase indicates that the company is generating a higher return for its shareholders on their equity investments.

Comparing the ROE in 2024 to that of 2020, where it was -3.43%, there has been a significant turnaround in the company's profitability and efficiency in utilizing shareholder equity. The positive ROE in 2024 is a positive sign of improved financial performance.

However, it is essential to note that the ROE was higher in 2022 at 3.31% compared to 2024, indicating that there is room for further improvement in profitability and efficiency in utilizing shareholder equity. Overall, the fluctuating trend in ROE over the past five years suggests that Walt Disney Company's financial performance has been volatile and may require closer monitoring and strategic management to sustain and enhance shareholder value.