Walt Disney Company (DIS)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,763,000 | 1,760,000 | 2,248,000 | 4,592,000 | 3,531,000 | 3,328,000 | 3,132,000 | 1,915,000 | 1,990,000 | 474,000 | 2,853,000 | -2,932,000 | -3,008,000 | -518,000 | 1,487,000 | 8,708,000 | 14,657,000 | |||
| Long-term debt | US$ in thousands | 41,603,000 | 42,101,000 | 44,544,000 | 45,066,000 | 45,128,000 | 45,299,000 | 46,022,000 | 46,624,000 | 47,349,000 | 48,540,000 | 51,110,000 | 50,903,000 | 52,878,000 | 52,917,000 | 54,197,000 | 42,770,000 | 38,057,000 | 38,129,000 | 36,311,000 | 37,803,000 |
| Total stockholders’ equity | US$ in thousands | 100,721,000 | 99,277,000 | 97,610,000 | 97,859,000 | 96,149,000 | 95,008,000 | 92,500,000 | 90,636,000 | 89,864,000 | 88,553,000 | 86,741,000 | 85,540,000 | 84,071,000 | 83,583,000 | 85,866,000 | 90,407,000 | 89,757,000 | 88,877,000 | 90,472,000 | 89,938,000 |
| Return on total capital | 1.94% | 1.24% | 1.58% | 3.21% | 2.50% | 2.37% | 2.26% | 1.40% | 1.45% | 0.35% | 2.07% | -2.15% | -2.20% | -0.38% | 1.06% | 6.54% | 11.47% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,763,000K ÷ ($41,603,000K + $100,721,000K)
= 1.94%
The return on total capital for Walt Disney Company has shown fluctuating trends over the past few quarters. The return on total capital indicates the efficiency of the company in generating profits from the capital invested in the business.
In the most recent quarter, the return on total capital stood at 1.94%, showing a slight improvement from the previous quarter. However, looking back over the past few quarters, there have been variations in the return on total capital ranging from negative figures to double-digit percentages.
The return on total capital peaked at 11.47% in the fourth quarter of 2019 but has since experienced some volatility. It decreased to negative figures in the first and second quarters of 2021, indicating challenges in effectively utilizing the capital to generate returns. However, there has been a gradual recovery since then, with positive returns recorded in the subsequent quarters.
Overall, while the return on total capital for Walt Disney Company has shown some inconsistency, it is important for investors and stakeholders to closely monitor these metrics to assess the company's performance in optimizing its capital utilization for generating returns.
Peer comparison
Dec 31, 2023