Question
The Walt Disney Company has four profitable business segments, described as follows: Media Networks: The ABC television and radio network, Disney channel, ESPN, A&E, E!,
The Walt Disney Company has four profitable business segments, described as follows:
- Media Networks: The ABC television and radio network, Disney channel, ESPN, A&E, E!, and Disney.com
- Parks and Resorts: Walt Disney World Resort, Disneyland, Disney Cruise Line, and other resort properties
- Studio Entertainment: Walt Disney Studios, which releases films by Pixar Animation Studios, Marvel Studios, Disney/Lucasfilm, and Touchstone Pictures
- Consumer Products: Character merchandising, Disney stores, books, and magazines
Disney recently reported sector income from operations, revenue, and invested assets (in millions) as follows:
Income from Operations | Revenue | Invested Assets | ||||
Media Networks | $6,625 | $24,500 | $35,899 | |||
Parks and Resorts | 4,469 | 20,296 | 30,670 | |||
Studio Entertainment | 2,980 | 9,987 | 17,154 | |||
Consumer Products | 1,632 | 4,651 | 8,793 |
a. Use the DuPont formula to determine the return on investment for the four Disney sectors. Round Profit Margin, ROI to one decimal place and Investment Turnover to two decimal places.
Profit Margin | Investment Turnover | ROI | |
Media Networks | fill in the blank 1% | fill in the blank 2 | fill in the blank 3% |
Parks and Resorts | fill in the blank 4% | fill in the blank 5 | fill in the blank 6% |
Studio Entertainment | fill in the blank 7% | fill in the blank 8 | fill in the blank 9% |
Consumer Products | fill in the blank 10% | fil the blank | fill in the blank 12% |
b. How do the four sectors differ in their profit margin, investment turnover, and return on investment?
_____ has the highest profit margin, while ____ has the lowest profit margin. ______ has the highest return on investment, while has the lowest return on investment.
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