Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I want to know Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL), and Degree of Total Leverage (DTL) of Disney in 2018. Disney

image text in transcribedimage text in transcribed

I want to know Degree of Operating Leverage (DOL), Degree of Financial Leverage (DFL), and Degree of Total Leverage (DTL) of Disney in 2018.

image text in transcribedimage text in transcribed
Disney 2018 2017 change EBIT 15,706,000,000 $ 14,775,000,000 6.30% Sales 59,434,000,000 $ 55,137,000,000 7.79% DOL 0.81 DFL = % change in EPS / % change in EBIT OR DFL = EBIT / EBIT - Interest 2018 2017 change EBIT 15,706,000,000 $ 14,775,000,000 6% EPS 836,000,000 $ 569,000,000 47% DFL 7.45 Disney EBIT 15,706,000,000 EBT 14,723,000,000 DFL 1.07 Degree of total leverage = Degree of operating leverage x Degree of financial Disney DOL 0.81 DFL 1.07 DTL 0.87Annual Income Statement Data Actuals in M $ Fiscal Period September 2016 2017 2018 Sales 55 632 55 137 59 434 EBITDA 17 608 16 975 17 956 Operating profit (EBIT) 15 721 14 775 15 706 Pre-Tax Profit (EBT) 14 868 13 788 14 729 Net income 9 391 8 980 12 598 P/E ratio 16,2x 17,3x 14,0x EPS ( $ ) 5,73 5,69 8,36 Dividend per Share ( $ ) 1,42 1,56 1,68 Yield 1,53% 1,58% 1,44% Reference price ( $ ) 92,860 98,570 116,940 Announcement Date 11/10/2016 11/09/2017 11/08/2018 09:15pm 09:05pm 09:05pm

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

10th edition

77835425, 978-0077835422

More Books

Students also viewed these Finance questions