Determine these ratios, for Disney Corporation.
Inventory Turnover Ratio
Accounts Receivable Turnover Ratio
Debt to equity Ration
Return on Assets
Return on Equity
Gross Margin on Sales
The attached solution shows how to calculate different ratios for Disney Corporation.
1. CURRENT RATIO: The current ratio is a measure of the coverage which current assets provides over all current liabilities.
WALT DISNEY COMPANY
FORMULA CURRENT ASSETS/CURRENT LIABILITIES
CURRENT ASSETS 11666 11314
CURRENT LIABILITIES 11591 11391
Current Ratio 1.006 0.993
2. INVENTORY TURNOVER: This ratio measures the amount of times the company's inventory is sold. The higher it is the more revenue generated.
REVENUE 37843 35510
INVENTORY 11591 11391
Inventory Turnover 3.27 3.12
3. ACCOUNTS RECEIVABLE ...
The solution deals with how to calculate ratios for Disney Corporation. The ratios, calculated include:
1. Current ratio
2. Inventory ratio
3. Debt equity ratio
4. Accounts receivable turnover