Disney corporation: Ratio analysis
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Determine these ratios, for Disney Corporation.
Current Ratio
Inventory Turnover Ratio
Accounts Receivable Turnover Ratio
Debt to equity Ration
Return on Assets
Return on Equity
Gross Margin on Sales
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Solution Summary
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
Solution Preview
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
2008 2007
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.
FORMULA REVENUE/INVENTORY
2008 2007
REVENUE 37843 35510
INVENTORY 11591 11391
Inventory Turnover 3.27 3.12
3. ACCOUNTS RECEIVABLE ...
Education
- B. Sc., University of Nigeria
- M. Sc., London South Bank University
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