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Financial Analysis of Disney

Attached are the URLs to Disney's 2006 & 2007 annual reports. Calculate the following ratios for each year:
? Current
? Debt
? Return on Equity
? Days Receivable

Be sure to discuss the trend for each ratio and what it tells about the organization's financial health.

http://amedia.disney.go.com/investorrelations/annual_reports/WDC-AR-2006.pdf

http://amedia.disney.go.com/investorrelations/annual_reports/WDC-AR-2007.pdf

Solution Preview

For 2006: (calculation $ in millions)
Current=Current Assets/Current Liabilities=$9,562/$10,210=0.94
Debt=Total Debt/Total Assets= ($10,210+10,843+2,651+3,131+1,343)/$59,998=$28,178/$59,998=0.47
Return on Equity=Net Profit/Total Equity=$3,374/$31,820=0.11
Days Receivable=Ending Receivables/Sales per Day=$4,707/ ($34,295/365)=$4,707/$93.96=50.1 Days

For 2007: (calculation $ in millions)
Current=Current Assets/Current Liabilities=$11,314/$11,391=0.99
Debt=Total Debt/Total Liabilities= ...

Solution Summary

The solution is a financial analysis of Disney including ratios.

$2.19