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The Walt Disney Co (BUE:DIS) ROA %

: 2.70% (As of Mar. 2023)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. The Walt Disney Co's annualized Net Income for the quarter that ended in Mar. 2023 was ARS1,004,344 Mil. The Walt Disney Co's average Total Assets over the quarter that ended in Mar. 2023 was ARS37,177,893 Mil. Therefore, The Walt Disney Co's annualized ROA % for the quarter that ended in Mar. 2023 was 2.70%.

The historical rank and industry rank for The Walt Disney Co's ROA % or its related term are showing as below:

BUE:DIS' s ROA % Range Over the Past 10 Years
Min: -1.45   Med: 8.47   Max: 12.96
Current: 2.03

During the past 13 years, The Walt Disney Co's highest ROA % was 12.96%. The lowest was -1.45%. And the median was 8.47%.

BUE:DIS's ROA % is ranked better than
55.66% of 1033 companies
in the Media - Diversified industry
Industry Median: 1.03 vs BUE:DIS: 2.03

The Walt Disney Co ROA % Historical Data

The historical data trend for The Walt Disney Co's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Walt Disney Co Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 17.47 8.54 -1.65 1.12 1.81

The Walt Disney Co Quarterly Data
Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.96 2.93 0.34 2.76 2.70

Competitive Comparison

For the Entertainment subindustry, The Walt Disney Co's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

The Walt Disney Co ROA % Distribution

For the Media - Diversified industry and Communication Services sector, The Walt Disney Co's ROA % distribution charts can be found below:

* The bar in red indicates where The Walt Disney Co's ROA % falls in comparison to its industry or sector. The grey bar indicates the ROA %'s extreme value range as defined by GuruFocus.



The Walt Disney Co ROA % Calculation

The Walt Disney Co's annualized ROA % for the fiscal year that ended in Sep. 2022 is calculated as:

ROA %=Net Income (A: Sep. 2022 )/( (Total Assets (A: Sep. 2021 )+Total Assets (A: Sep. 2022 ))/ count )
=436997.744/( (19908887.815+28294527.031)/ 2 )
=436997.744/24101707.423
=1.81 %

The Walt Disney Co's annualized ROA % for the quarter that ended in Mar. 2023 is calculated as:

ROA %=Net Income (Q: Mar. 2023 )/( (Total Assets (Q: Dec. 2022 )+Total Assets (Q: Mar. 2023 ))/ count )
=1004344.224/( (33886087.662+40469698.842)/ 2 )
=1004344.224/37177893.252
=2.70 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Mar. 2023) net income data. ROA % is displayed in the 30-year financial page.


The Walt Disney Co  (BUE:DIS) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Mar. 2023 )
=Net Income/Total Assets
=1004344.224/37177893.252
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1004344.224 / 17238213.4)*(17238213.4 / 37177893.252)
=Net Margin %*Asset Turnover
=5.83 %*0.4637
=2.70 %

Note: The Net Income data used here is four times the quarterly (Mar. 2023) net income data. The Revenue data used here is four times the quarterly (Mar. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


The Walt Disney Co ROA % Related Terms

Thank you for viewing the detailed overview of The Walt Disney Co's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


The Walt Disney Co (BUE:DIS) Business Description

The Walt Disney Co logo
Address
500 South Buena Vista Street, Burbank, CA, USA, 91521
Walt Disney owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker. These characters and others are featured in several Disney theme parks around the world. Disney makes live-action and animated films under studios such as Pixar, Marvel, and Lucasfilm and also operates media networks including ESPN and several TV production studios. Disney shifted into a more streaming-focused firm by acquiring the remainder of Hulu and launching Disney+ and ESPN+. Across its streaming platforms, Disney had over 235 million subscribers as of September 2022, up sharply from under 64 million in December 2019.

The Walt Disney Co (BUE:DIS) Headlines