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Industry Averages for Commonly Used Ratios

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Obtain industry averages for commonly used ratios in the 2013 and 2014 period. Write a 350 word report comparing Disney ratios to the industry averages. Discuss whether Disney entertainment company is profitability, efficiency, liquidity, and solvency are better than, or worse than, two of its peers. Place the industry averages, Disney ratios, and peer ratios on an excel spreadsheet.

Identify and evaluate trends in all of the below ratios for the industry that Disney entertainment company is a part of. Compare Disney ratio results to industry averages.

Obtain industry averages for commonly used ratios in the current period. Industry average information is reported by industry title or SIC code.

Look up the following industry-average ratios:
1. Current ratio
2. Debt ratio
3. Gross profit margin
4. Times interest earned
5. Accounts receivable turnover
6. Inventory turnover
7. Return on Sales
8. Asset Turnover
9. Return on Assets
10. Financial Leverage
11. Return on Equity

Note that some industry averages may not apply to Disney.

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Solution Preview

The response addresses the query posted in 537 words with APA references

//The comparison of financial figures of one company with the peers or industry is very important from long-term survival and growth perceptive. In this context, in the following section, a report on the comparison of Walt Disney's profitability, liquidity, efficiency and solvency position with its peers has been given.//

Trends in the Ratios for the Industry

In the year 2014, the current ratio of the industry has slightly decreased as compared to the current ratio of the year 2013, which means that the liquidity position of the industry, as a whole, has become slightly weaker. The debt ratio of the industry has remained unchanged, which depicts that the industry has neither borrowed new debts and nor has paid off the existing debt. A slightly upward trend has been observed in the gross profit ratio. Times interest ...

Solution Summary

The industry averages for commonly used ratios are determined. The response addresses the query posted in 537 words with APA references.