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The Walt Disney Co (NYSE:DIS) Gross Margin %

: 2.69% (As of Sep. 2022)
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Gross Margin % is calculated as gross profit divided by its revenue. The Walt Disney Co's Gross Profit for the three months ended in Sep. 2022 was $542 Mil. The Walt Disney Co's Revenue for the three months ended in Sep. 2022 was $20,150 Mil. Therefore, The Walt Disney Co's Gross Margin % for the quarter that ended in Sep. 2022 was 2.69%.

Warning Sign:

The Walt Disney Co gross margin has been in long-term decline. The average rate of decline per year is -24.1%.


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

DIS' s Gross Margin % Range Over the Past 10 Years
Min: 8.18   Med: 44.68   Max: 46.09
Current: 26.92


During the past 13 years, the highest Gross Margin % of The Walt Disney Co was 46.09%. The lowest was 8.18%. And the median was 44.68%.

DIS's Gross Margin % is ranked worse than
69.85% of 942 companies
in the Media - Diversified industry
Industry Median: 39.44 vs DIS: 26.92

The Walt Disney Co had a gross margin of 2.69% for the quarter that ended in Sep. 2022 => No sustainable competitive advantage

The 5-Year average Growth Rate of Gross Margin for The Walt Disney Co was -24.10% per year.


The Walt Disney Co (NYSE:DIS) Gross Margin % Historical Data

The historical data trend for The Walt Disney Co's Gross Margin % 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
Gross Margin % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 44.94 39.57 32.89 33.06 8.18

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
Gross Margin % 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 33.41 33.24 34.57 36.37 2.69

The Walt Disney Co (NYSE:DIS) Gross Margin % Competitive Comparison

For the Entertainment subindustry, The Walt Disney Co's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 (NYSE:DIS) Gross Margin % Distribution

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

* The bar in red indicates where The Walt Disney Co's Gross Margin % falls into.



The Walt Disney Co Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

The Walt Disney Co's Gross Margin for the fiscal year that ended in Sep. 2022 is calculated as

Gross Margin % (A: Sep. 2022 )=Gross Profit (A: Sep. 2022 ) / Revenue (A: Sep. 2022 )
=6770 / 82722
=(Revenue - Cost of Goods Sold) / Revenue
=(82722 - 75952) / 82722
=8.18 %

The Walt Disney Co's Gross Margin for the quarter that ended in Sep. 2022 is calculated as


Gross Margin % (Q: Sep. 2022 )=Gross Profit (Q: Sep. 2022 ) / Revenue (Q: Sep. 2022 )
=542 / 20150
=(Revenue - Cost of Goods Sold) / Revenue
=(20150 - 19608) / 20150
=2.69 %

* 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.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


The Walt Disney Co  (NYSE:DIS) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

The Walt Disney Co had a gross margin of 2.69% for the quarter that ended in Sep. 2022 => No sustainable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


The Walt Disney Co Gross Margin % Related Terms

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


The Walt Disney Co (NYSE: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 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

The Walt Disney Co (NYSE:DIS) Headlines

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