The Walt Disney Co (NYSE:DIS) ROC %

: 0.80% (As of Sep. 2022)

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ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The Walt Disney Co's annualized return on capital (ROC %) for the quarter that ended in Sep. 2022 was 0.80%.

As of today (2023-01-27), The Walt Disney Co's WACC % is 8.67%. The Walt Disney Co's ROC % is 2.50% (calculated using TTM income statement data). The Walt Disney Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

The Walt Disney Co ROC % Historical Data

The historical data trend for The Walt Disney Co's ROC % 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.

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The Walt Disney Co Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

ROC %

14.56

6.87

2.99

2.03

2.50

The Walt Disney Co Quarterly Data
	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22
ROC %																1.18	3.45	1.91	3.79	0.80

The Walt Disney Co ROC % Calculation

The Walt Disney Co's annualized Return on Capital (ROC %) for the fiscal year that ended in Sep. 2022 is calculated as:

	ROC % (A: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Sep. 2021 )	+	Invested Capital (A: Sep. 2022 ))	/ count )
=	6770 * ( 1 - 32.77% )	/	( (180135	+	183393)	/ 2 )
=	4551.471	/	181764
=	2.50 %

where

	Invested Capital		(A: Sep. 2021 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	203609	-	20894	-	( 15959	-	max(0, 31077	-	33657	+	15959	))
=	180135

	Invested Capital		(A: Sep. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	203631	-	20213	-	( 11615	-	max(0, 29073	-	29098	+	11615	))
=	183393

The Walt Disney Co's annualized Return on Capital (ROC %) for the quarter that ended in Sep. 2022 is calculated as:

	ROC % (Q: Sep. 2022 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2022 )	+	Invested Capital (Q: Sep. 2022 ))	/ count )
=	2168 * ( 1 - 32.45% )	/	( (182498	+	183393)	/ 2 )
=	1464.484	/	182945.5
=	0.80 %

where

	Invested Capital		(Q: Jun. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	204074	-	20858	-	( 12959	-	max(0, 30704	-	31422	+	12959	))
=	182498

	Invested Capital		(Q: Sep. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	203631	-	20213	-	( 11615	-	max(0, 29073	-	29098	+	11615	))
=	183393

Note: The Operating Income data used here is four times the quarterly (Sep. 2022) data.

The Walt Disney Co (NYSE:DIS) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, The Walt Disney Co's WACC % is 8.67%. The Walt Disney Co's ROC % is 2.50% (calculated using TTM income statement data). The Walt Disney Co earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of 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.

The Walt Disney Co ROC % Related Terms

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The Walt Disney Co (NYSE:DIS) Business Description

Industry

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Address

500 South Buena Vista Street, Burbank, CA, USA, 91521

Website

https://www.thewaltdisneycompany.com

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 recently reorganized into four segments with one new segment: direct-to-consumer and international. The new segment includes the two announced OTT offerings, ESPN+ and the Disney SVOD service. The plan also combines two segments, parks and resorts and consumer products, into one. The media networks group contains the U.S. cable channels and ABC. The studio segment holds the movie production assets.

Executives

Gutierrez Horacio E	officer: Sr EVP, General Counsel & Secy	500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Morrell Geoff	officer: SEVP Chf Corp Affairs Officer	500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Richardson Paul J	officer: Sr. EVP and Chief HR Officer	500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Chang Amy	director	2100 SEAPORT BLVD. C/O INFORMATICA CORPORATION REDWOOD CITY CA 94063
Mcdonald Calvin	director	C/O LULULEMON ATHLETICA INC. 1818 CORNWALL AVENUE VANCOUVER A1 V6J 1C7
Chapek Robert A	officer: Chief Executive Officer	500 SOUTH BUENA VISTA STREET BURBANK CA 91521
Catz Safra	director	C/O DELPHI ASSET MGMT CORPORATION 5525 KIETZKE LANE, SUITE 200 RENO NV 89511
Arnold Susan E	director	THE PROCTER & GAMBLE COMPANY 1 PROCTER & GAMBLE PLAZA CINCINNATI OH 45202
Lagomasino Maria Elena	director	345 PARK AVENUE 5TH FL NEW YORK NY 10154
Parker Mark G	director	ONE BOWERMAN DR BEAVERTON OR 97005
Barra Mary T	director	300 RENAISSANCE CENTER M/C: 482-C25-A36 DETROIT MI 48265-3000
Froman Michael B. G.	director	2000 PURCHASE STREET PURCHASE NY 10577
Braverman Alan N	officer: Sr EVP, General Counsel & Secy	500 SOUTH BUENA VISTA ST BURBANK CA 91521-1030
Mccarthy Christine M	officer: SEVP-Chief Financial Officer	500 SOUTH BUENA VISTA STREET BURBANK CA 91521-0964
Parker Mary Jayne	officer: SEVP and Chief HR Officer	500 SOUTH BUENA VISTA STREET BURBANK CA 91521-0966