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

: 32.71% (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 $6,592 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 32.71%.

Warning Sign:

The Walt Disney Co gross margin has been in long-term decline. The average rate of decline per year is -6.8%.

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: 32.89 Med: 44.68 Max: 46.09
Current: 34.24

During the past 13 years, the highest Gross Margin % of The Walt Disney Co was 46.09%. The lowest was 32.89%. And the median was 44.68%.

DIS's Gross Margin % is ranked worse than
58.54% of 943 companies
in the Media - Diversified industry
Industry Median: 39.03 vs DIS: 34.24

The Walt Disney Co had a gross margin of 32.71% for the quarter that ended in Sep. 2022 => Competition eroding margins

The 5-Year average Growth Rate of Gross Margin for The Walt Disney Co was -6.80% per year.

The Walt Disney Co 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 %

44.94

39.57

32.89

33.06

34.24

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 %																33.41	33.24	34.57	36.37	32.71

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.

Annual Data Quarterly Data

The Walt Disney Co 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 in comparison to its industry or sector. The grey bar indicates the Gross Margin %'s extreme value range as defined by GuruFocus.

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 )
	=	28321	/	82722
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(82722 - 54401)	/	82722
	=	34.24 %

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 )
	=	6592	/	20150
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(20150 - 13558)	/	20150
	=	32.71 %

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 32.71% for the quarter that ended in Sep. 2022 => Competition eroding margins

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

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » The Walt Disney Co (NYSE:DIS) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

DIS-RM:Russia DIS:Mexico 0QZO:UK WDP0:Germany WDP:Germany WDP:Germany WDP:Germany WDP:Germany DIS:Chile DIS:Canada DISB34:Brazil DIS:Austria DIS:Argentina

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