Introduction
Financial review can be described as a fundamental aspect applied in determining long-term sustainability pentagram. This process is characterized by profound in-depth analysis of the information presented in financial statements of business entities to provide skeptical judgment applied to evaluate short-term and long-term durable competitive advantage. According to the information provided by (Guerard, 2013) Disney Inc.Com is a world class film, theme park resort, television shows and business entity which offer entertainment content intended for children and families. Over the recent past, this entity has been highlighted to have intensified its populism leading to heighted profitability yield.
Disney Inc.Com can be described to be a faultless case scenario based on its precise operational pentagram that is undergoing significant modification in terms of organizational structure, quality product production, market investment portfolio, organizational ethnicity and radical update of its advertisement and customer outreach measures based on postulated customer competitive pressure. This is a business that nurtured extremely fast within a little time span. Thus, its management found themselves not being able to cling to their procedures and finances under control. However, the Disney Inc.Com almost faced insolvency. Therefore, the company had to re-evaluate and restructure its organizational principles and organizational configuration to avoid bankruptcy. The organizational culture embraces change; with the motive to outperform and be successful as its fundamental objectives (Dyer, Furr, & Lefrandt, 2019), acknowledges.
Financial statement analysis
Review of financial statement can be described as a fundamental aspect in determining the certainty of short-term and long-term operability pentagram. Consequently, critical scrutiny of financial review is also a significant step in healthcare vender as it aids in planning and determining the going concern concept based on the estimated profitable yield earned from patients. Going concern is the ability of Disney Inc.Com to sustain its operating in the future despite of the stiff competition which emerges in the market amongst other systematic and unsystematic risk occurrences. The information provided by (Davidson, 2018), provides further insight on financial review as the process of determining potential credit risk based on financial rationales.
This process of financial reviewing provides decisive information to investors, shareholders, owners, general public and the government as it aids in determining whether the business venture has the financial ability to meet the expected financial obligations on short run and long run basis. However, in terms of planning and expansion, the financial statement review based on the information provided in the spreadsheet analysis aid in drafting the leeway of generating more capital and minimize expenditures based on financial forecasting heightened through ratio analysis.
Graphical representations of Balance sheet for the year end 2020
Graphical representations of Balance sheet for the year end 2019
According to the information presented in the entities balance sheet computed on the basis of quantum strategy, the total assets have been indicated to maintain a positive growth variant from the financial year ending 2019 to the financial year ending on 2020. In addition, the total expected liability has been represented with a linear incline over the respective financial period indicating enhanced increase on debt rate. Debt increase can be classified as a negative variant based on long-term performance portfolio. Shareholders’ equity have been characterized by augmented positive growth over the respective financial period indicating a favorable operating margin based on short-term and long-term factor evaluation matrix.
Cash flow statement graphical representation for the year end 2020
Cash flow statement graphical representation for the year end 2019
Cash flow statement can be described as the fundamental breakdown of the entities cash flow from operating activities, net cash flow from investing activities and net cash flow generated from financing activities. A well-defined decision making criterion is required while computing cash & cash equivalents based on the respective operational timeline to facilitate sustainable going concern. The information presented in (Macro trends, 2021) indicates the existence of a distinct performance benchmark regarding cash flow from operating activities due to linear increase in growth over the last quantum financial periods. Concurringly, net cash flow from investing activities has increased since the financial year ending 2019 from $ 5,984 to $ 7,616 in the financial year ending 2020 a clear indication that Disney Inc.Com has heighted the investment portfolio in terms of long-term operational pentagram. The expected net cash flow from financing activities can be described to have also a favorable growth factor over the respective financial period having an increased positive factor from ($15,096) in the financial year 2019 to ($3,850) in the financial year ending 2020. This can be described to have a negative profitability impact on short-term performance pentagram and projected to have a positive long-term profitability impact on Disney Inc.Com investment portfolio chart, (Guerard, 2013).
Income statement graphical representation for the year end 2020
Income statement graphical representation for the year end 2019
Income statement can be described as a critical representation of the entities revenue growth compared to the expected operational expenses and income taxes. According to the information presented in (Macro trends, 2021), the expected to cost of revue has been highlighted to have unfavorable negative growth rate over the respective period from the financial year 2019 with $ 69,607 to the financial year ending 2020 with $ 65,388. This indicates a favorable going concern concept and certain operability pentagram. The expected net income has also been indicated to have unfavorable growth proportion over this respective financial period from $11,054 in the financial year 2019 to $ (2,864) in the financial year ending 2020.
Financial ratio analysis
A profound efficiency analysis of Disney Inc.Com financial health is enhanced through horizontal presentation of rationale which includes liquidity ratios, profitability ratio, efficiency ratio, long-term solvency ratio and financial leverage ratios.
Profitability ratio which have been used to provide relevant insight on Disney Inc.Com financial strength include return on assets and return on equity. Based on (Guerard, 2013), profitability ratios highlight the ability of Disney Inc.Com to be able to generate profit despite of the expected financial expenditures and risk uncertainties. A negative variant portrayed by return on asset and return on equity which is less than 1 indicates unfavorable financial health based on short-term financial operability pentagram.
Liquidity ratios can be describes the ability of Disney Inc.Com to meet its financial obligations and margin of long-term operability safety based on the available inventories. Precisely, quick ratio and the day’s sales outstanding have been computed to provide further insight on the debt coverage portfolio. Having a quick ratio of 1,308.61 in the financial year ending 2019 and (1,308.61) in the financial year ending 2020 is a clear indication that Disney Inc.Com has uncertain long-term debt coverage. Day’s sales outstanding have been computed to provide a detailed analysis of short-term payment range of debt. Having represented with this rationale which is greater than 1; it is a clear indication that the organization is unable to meet its short term obligations.
Financial leverage ratios which have been applied to enhance a profound financial analysis of Disney Inc.Com include current ratio and time interest earned ratio. A positive favorable operational pentagram has been highlighted by the arithmetic computation of these proportions. Consequently, efficiency ratios have also been considered to highlight the effectiveness of Disney Inc.Com operational pentagram. This included the accounts receivable turnover ratio and the asset turnover ratio based on the expected total sales. Long-term solvency of Disney Inc.Com has also been indicated to be certain based on debt to equity ratio and debt to asset ratio. Long term solvency is based on the total expected debts to be incurred compared to the entities equity and total assets. Having a debt to equity ratio of 1.076 for the financial year 2019 and debt to asset ratio of 1.28 in the same quarter is a clear indication that Disney Inc.Com has a certain long-term solvency rationale.
Conclusion
In summary, relevant application of internal factor evaluation matrix postulate effective integration of relevant analysis of financial performance of business entities. Disney Inc.Com has been highlighted to have a certain going concern despite of the increased competitive pressure and change in customer preference. A well-integrated supply chain management, application of quantum strategy and enhanced risk analysis portfolio has been indicated to be some of the key phenomenal which have enhanced profit maximization (Dyer, Furr, & Lefrandt, 2019).
Reference list
Dyer, J., Furr, N. R., & Lefrandt, C. T. (2019). Innovation capital: How to compete--and win--like the world's most innovative leaders.
Davidson, W. N. (2018). Financial forecasting and decision making Place of publication not identified: JOHN WILEY.
Guerard, J. (2013). Introduction to financial forecasting in investment analysis New York, NY: Springer.
Macro trends, (2021). Disney Inc.Com – Stock Price History 2005-2021. Retrieved on 18th October 2021 From https://www.macrotrends.net/stocks/charts/DIS/disney/financial-statements
Cash flow from operating activites Cash Flow From Investing Activities Cash Flow from financial activities Net Cash Flow 5984 -15096 -464 1300
Revenue gross profit operating Income Pre-tax Income Income taxes Income After taxes EBITDA 65388 21508 -1941 -1743 699 -2442 8357
Revenue gross profit operating Income Pre-tax Income Income taxes Income After taxes Net Income EBITDA 69607 27546 10647 13923 3026 10897 11054 14814
Total current assets Total assets Total current liabilities Total liabilities Share holder Equity Total Liabilities and Share Holders Equity 35251 201549 26628 113286 88263 201549
Total current assets Total assets Total current liabilities Total liabilities Share holder Equity Total Liabilities and Share Holders Equity 28124 193984 3134 1 100095 93889 193984
Cash flow from operating activites Cash Flow From Investing Activities Cash Flow from financial activities Net Cash Flow 5984 -15096 -464 1300
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