Using the provided Excel sheet (in D2L) show the income statements, balance sheets, and cash flow statements, calculate the financial ratios for Walt Disney Co and one of its Competitor/Peer. You must calculate the financial ratios for the most recent five full years (2018, 2017, 2016, 2015, and 2014) for Walt Disney Co. Show how you calculated the ratios for both companies. Tax rate is 20%.
- Explain your findings for each ratio (Current, Quick, ROA, ROE, TIE, and others).
i.e. current ratio is deteriorating.
- Explain your findings for category of ratios (Liquidity, Debt, Asset Management and others).
i.e. Overall liquidty ratios are improving and show no sign of immediate liqudity problem.
- Which of the ratios may indicate problems? For these, explain the potential problems.
i.e. Quick ratio is declining and indicate that the firm is likely to have difficulty to cover its short term cash expenses. 
2014-09 2015-09 2016-09 2017-09 2018-09 2014-09 2015-09 2016-09 2017-09 2018-09 4881352465 55632 55137 59434 26420 28364 29993 30306 32726 22393 24101 2563924831 26708 WALT DISNEY CO (DIS) INCOME STATEMENT Revenue Cost of revenue Gross profit Operating expenses Sales, General and administrative Restructuring, merger and acquisition Other operating expenses Total operating expenses Operating income Interest Expense Other income (expense) Income before taxes Provision for income taxes Net income from continuing operations Other Net income Earnings per share Basic Diluted Weighted average shares outstanding 8565 85238754 140 53 156 2148 2301 2371 10853 10877 11281 1154013224 14358 294 265 354 1000 909864 12246 13868 14868 4242 5016 5078 8004 8852 9790 -503 -470 -399 7501 8382 9391 8176 8860 157 30 2939 2981 10958 11871 1387314837 507 682 422 574 13788 14729 4422 1663 9366 13066 -386 -468 8980 12598 Disney Ratios Liquidity Current Ratio Quick Ratio Asset Management Inventory Turnover Day's Sales Outstanding Fixed Assets Turnover Total Assets Turnover Debt/Capital Management Ratios Debt-to-Capital Ratio Times Interest Earned (TIE) Profitability Ratios Operating Margin Profit Margin Basic Earning Power ROA ROE ROIC Market Value Ratios P/E M/B 4.31 4.26 4.95 4. 9 5.76 .73 5.73 5.69 8.4 8.36 5 Basic Diluted EBITDA 1740 1759 14828 1694 1709 16487 16291568 16391578 17749 17077 1499 1507 18422 BALANCE SHEET 2014-02015-02016-02017-02018-09 3421 3421 7428 1574 4269 4610 4269 4610 76138458 1571 1390 4017 4150 4017 4150 8013 8268 1373 1392 425 469 1831 2069 15176 16758 449 2059 16966 445 2041 15889 476 2539 16825 47054 50023 54198 5744360304 ##### ##### ##### ##### ##### 23332 25179 27349 28406 29540 2696 2643 4280 3202 2899 27881 27826 27810 31426 31269 7434 7172 6949 6995 6812 7667 8604 8679 9871 11253 69010 71424 75067 79900 81773 84186 88182 92033 95789 98598 Assets Current assets Cash Cash and cash equivalents Total cash Receivables Inventories Deferred income taxes Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt Accounts payable Acorued liabilities Deferred revenues Total current liabilities Non-current liabilities Long-term debt Deferred taxes liabilities Pensions and other benefits Minority interest Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Retained earnings Treasury stock Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 2164 4563 3687 6172 3790 5371 5504 6860 6490 6503 2224 2340 2270 2365 2976 3533 3927 4025 4568 4591 13292 16334 16842 19595 17860 12676 12773 16483 1911917084 4098 4051 3679 4480 3109 3481 3940 5184 3281 2712 3220 4130 4058 3689 4059 2461 2429 2522 4310 5001 25936 27323 31926 34879 31965 39228 43657 48768 54474 49825 34301 35122 35859 36248 36779 53734 59028 66088 72606 82679 -41109 ##### ##### -64011 ##### -1968 -2421 -3979 -3528 -3097 44958 44525 43265 41315 48773 84186 88182 92033 95789 98598 Statement of CASH FLOW 2014-09 2015-09 2016-09 2017-09 2018-09 Cash Flows From Operating Activities Net income 8004 8852 9790 9366 13066 Depreciation & amortization 2288 2354 2527 27823011 Deferred income taxes 517 -102 1214 334 - 1573 Stock based compensation 408 410 393 364 393 Change in working capital -1236 -793 -1003 -1185 -1360 Inventory -81 1 186 -5 -17 Other working capital -1155 -794 -1189 -1180 -1343 Other non-cash items -201 188 292 682 758 Net cash provided by operating activities 9780 1090913213 12343 14295 Cash Flows From Investing Activities Investments in property, plant, and equipment -3311 -4265 -4773 - 3623 -4465 Acquisitions, net 166 -805 4 17 1581 Other investing activities -27 -146 -180 -71 710 Net cash used for investing activities -3345 -4245 -5758 -4111 -5336 Cash Flows From Financing Activities Debt issued 2231 2550 6065 4820 1056 Debt repayment - 1648 -2221 -2205 -2364 -1871 Common stock repurchased -6527 -6095 -7499 -9368 -3577 Dividend paid -1508 -3063 -2313 -2445 -2515 Other financing activities 742 3315 -1039 398 - 1936 Net cash provided by (used for) financing activit -6710 -5514 -6991 -8959 -8843 Effect of exchange rate changes -235 -302 -123 3 1 -25 Net change in cash -510 848 341 -696 91 Cash at beginning of period 3931 3421 4269 4760 4064 Cash at end of period 3421 42694610 4064 4155 Free Cash Flow Operating cash flow 9780 1090913213 12343 14295 Capital expenditure -3311 -4265 -4773 -3623 -4465 Free cash flow 6469 6644 8440 8720 9830 Number of Shares Outstanding and Price per Share 2014-09 2015-09 2016-09 2017-09 2018-09 Shares 1759 1709 16391578 1818 Price per Share 89.03 102.2 92.86 98.57 116.94 2014-09 2015-09 2016-09 2017-09 2018-09 2014-09 2015-09 2016-09 2017-09 2018-09 4881352465 55632 55137 59434 26420 28364 29993 30306 32726 22393 24101 2563924831 26708 WALT DISNEY CO (DIS) INCOME STATEMENT Revenue Cost of revenue Gross profit Operating expenses Sales, General and administrative Restructuring, merger and acquisition Other operating expenses Total operating expenses Operating income Interest Expense Other income (expense) Income before taxes Provision for income taxes Net income from continuing operations Other Net income Earnings per share Basic Diluted Weighted average shares outstanding 8565 85238754 140 53 156 2148 2301 2371 10853 10877 11281 1154013224 14358 294 265 354 1000 909864 12246 13868 14868 4242 5016 5078 8004 8852 9790 -503 -470 -399 7501 8382 9391 8176 8860 157 30 2939 2981 10958 11871 1387314837 507 682 422 574 13788 14729 4422 1663 9366 13066 -386 -468 8980 12598 Disney Ratios Liquidity Current Ratio Quick Ratio Asset Management Inventory Turnover Day's Sales Outstanding Fixed Assets Turnover Total Assets Turnover Debt/Capital Management Ratios Debt-to-Capital Ratio Times Interest Earned (TIE) Profitability Ratios Operating Margin Profit Margin Basic Earning Power ROA ROE ROIC Market Value Ratios P/E M/B 4.31 4.26 4.95 4. 9 5.76 .73 5.73 5.69 8.4 8.36 5 Basic Diluted EBITDA 1740 1759 14828 1694 1709 16487 16291568 16391578 17749 17077 1499 1507 18422 BALANCE SHEET 2014-02015-02016-02017-02018-09 3421 3421 7428 1574 4269 4610 4269 4610 76138458 1571 1390 4017 4150 4017 4150 8013 8268 1373 1392 425 469 1831 2069 15176 16758 449 2059 16966 445 2041 15889 476 2539 16825 47054 50023 54198 5744360304 ##### ##### ##### ##### ##### 23332 25179 27349 28406 29540 2696 2643 4280 3202 2899 27881 27826 27810 31426 31269 7434 7172 6949 6995 6812 7667 8604 8679 9871 11253 69010 71424 75067 79900 81773 84186 88182 92033 95789 98598 Assets Current assets Cash Cash and cash equivalents Total cash Receivables Inventories Deferred income taxes Prepaid expenses Other current assets Total current assets Non-current assets Property, plant and equipment Gross property, plant and equipment Accumulated Depreciation Net property, plant and equipment Equity and other investments Goodwill Intangible assets Other long-term assets Total non-current assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt Accounts payable Acorued liabilities Deferred revenues Total current liabilities Non-current liabilities Long-term debt Deferred taxes liabilities Pensions and other benefits Minority interest Other long-term liabilities Total non-current liabilities Total liabilities Stockholders' equity Common stock Retained earnings Treasury stock Accumulated other comprehensive income Total stockholders' equity Total liabilities and stockholders' equity 2164 4563 3687 6172 3790 5371 5504 6860 6490 6503 2224 2340 2270 2365 2976 3533 3927 4025 4568 4591 13292 16334 16842 19595 17860 12676 12773 16483 1911917084 4098 4051 3679 4480 3109 3481 3940 5184 3281 2712 3220 4130 4058 3689 4059 2461 2429 2522 4310 5001 25936 27323 31926 34879 31965 39228 43657 48768 54474 49825 34301 35122 35859 36248 36779 53734 59028 66088 72606 82679 -41109 ##### ##### -64011 ##### -1968 -2421 -3979 -3528 -3097 44958 44525 43265 41315 48773 84186 88182 92033 95789 98598 Statement of CASH FLOW 2014-09 2015-09 2016-09 2017-09 2018-09 Cash Flows From Operating Activities Net income 8004 8852 9790 9366 13066 Depreciation & amortization 2288 2354 2527 27823011 Deferred income taxes 517 -102 1214 334 - 1573 Stock based compensation 408 410 393 364 393 Change in working capital -1236 -793 -1003 -1185 -1360 Inventory -81 1 186 -5 -17 Other working capital -1155 -794 -1189 -1180 -1343 Other non-cash items -201 188 292 682 758 Net cash provided by operating activities 9780 1090913213 12343 14295 Cash Flows From Investing Activities Investments in property, plant, and equipment -3311 -4265 -4773 - 3623 -4465 Acquisitions, net 166 -805 4 17 1581 Other investing activities -27 -146 -180 -71 710 Net cash used for investing activities -3345 -4245 -5758 -4111 -5336 Cash Flows From Financing Activities Debt issued 2231 2550 6065 4820 1056 Debt repayment - 1648 -2221 -2205 -2364 -1871 Common stock repurchased -6527 -6095 -7499 -9368 -3577 Dividend paid -1508 -3063 -2313 -2445 -2515 Other financing activities 742 3315 -1039 398 - 1936 Net cash provided by (used for) financing activit -6710 -5514 -6991 -8959 -8843 Effect of exchange rate changes -235 -302 -123 3 1 -25 Net change in cash -510 848 341 -696 91 Cash at beginning of period 3931 3421 4269 4760 4064 Cash at end of period 3421 42694610 4064 4155 Free Cash Flow Operating cash flow 9780 1090913213 12343 14295 Capital expenditure -3311 -4265 -4773 -3623 -4465 Free cash flow 6469 6644 8440 8720 9830 Number of Shares Outstanding and Price per Share 2014-09 2015-09 2016-09 2017-09 2018-09 Shares 1759 1709 16391578 1818 Price per Share 89.03 102.2 92.86 98.57 116.94
