Disney final project

Income Statement When it comes to the income state for Walt Disney Company, they have two revenue sources services and products. The revenue for services for the past three years were $61,768,000 in 2021, $59,265,000 in 2020, and $60,542,000 in 2019. These revenues are recorded when a transaction has occurred (Hickman, Byrd, & McPherson. 2013. Sec 2.1). Based on the income statement decreased from 2019 to 2020 and increased in 2021. Which maybe resulting from sales decreasing due to COVID hitting in 2020. The revenue for products were $5,650,000 in 2021, $6,123,000 in 2020, and $9,028,000 in 2019. Resulting in products sales being the highest in 2019 and the lowest in 2021. To sum up the revenue for both products and services would show $67,418,000 in 2021, $65,388,000 in 2020, and $69,570,000 in 2019. Thus, resulting in 2019 bringing in the most revenue for The Walt Disney Company.

The operating expenses have increased over the period of 3 years. With 2019 being the lowest at ($57,719,000) and capping at ($63,759,000) in 2021. The net income would show that the company made a profit in 2021 and 2019, based on the income statement. The net income / 3 shows $1,995,000 in 2021, ($2,864,000) in 2020, and $11,054,000 in 2019. The highest income showing in 2019 where they made the most of their money.

Balance Sheet

The balance sheet shows the assets, liabilities, and equity of the company for each year. For three years The Walt Disney Company has a total of $203,609,000 in 2021, $201,549,000 in 2020, and $193,984,000 in 2019 of assets. Each year the assets increased for the company. There does not seem to be a trend in the assets for the company since each year they have increased. The total current liabilities seem to have increased in 2020 and decreased in 2021, which has a trend with the total borrowings showing that the borrowings have increased in 2020 and decreased in 2021. The total for equity has fluctuated in 2020, showing an increase in the company’s equity in 2021 of $93,011,000. 2020 resulting in the lowest year, in the past 3 years.

For the common sized balance sheet with show a fluctuation in the percentage of total current assets from the lowest year in 2019 by 14.50%, which increases in 2020 by 17.49% and decreasing in 2021 by 16.53%. The borrowings of the Walt Disney Company were paid down in 2021. From 19.66% to increasing in 2020 to 26.26%, and now reduced to 23.84%. Hopefully if the company continues to pay down their debt they will remain with a profit in income. According to the cashflow summary the borrowings had a massive reduction from $38 Million in 2019 to only $3 Million in 2021. This would mean that their debt is decreasing, giving the company the ability to not have to pay back so much money towards loans.

Cash Flow

The net cash flow from investing activities has dramatically decreased from the year 2019 to 2021. In 2019 there was huge liability of ($15,096,000). And ending in 2021 with ($3,171,000) this is a difference of ($11,925,000). The net cash flow from operating activities / 4 shows assets and a decrease from 2020 to 2021. The dividends of the company have not been reported for the year 2021 but does show that $1,587,000 was paid out to its shareholders in 2020, and in 2019 $2,895,000 was paid out. Walt Disney Company did not receive too much money from financing activities in 2021, where it has in the past in 2020. 2020 showed the most cash flow at $8,480,000 compared to the loss in 2021 and 2019.

Financial Analysis

Based on the report for The Walt Disney Company, the company doesn’t seem to bring bringing in as much money as its previous years. Revenue wise the company is has shifted to having an increase in services or product. The total cost & expenses aren’t showing a profit. In 2021 the revenue showed $67,418,000 and the costs of expenses showed ($63,759,000) in the hole. The net profit in 2021 showed a profit of $2,507,000 which is great compared to the loss of $11,584,000 in 2019. The company is doing a lot better in that aspect. The company shows strengths in its assets of $203,609,000 in 2021, which have increased since 2020 and 2019. It shows a huge reduction in borrowings which is a strength. The weakness would be the loss for cash flow in investing activities and financing activities. Walt Disney Company should be able to increase its net income. And would still be a good company to invest in.