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Summary Business Valuation Report of
Walt Disney.
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Financial Analysis
Financial Analysis Overview
A comprehensive financial statement analysis of Walt Disney Company has been conducted. The
balance sheet, cash flow statements, as well as the income statement of the company, have been
examined in order to get an insight into its financial health and viability. Some of the key elements
in each of the financial statements have been identified to capture the movement during the specific
time period. Performing financial analysis is a highly vital activity in the business context since it
can help in ascertaining, forecasting and evaluating the optimum economic conditions and
organizational performance in the future (Romadlon, 2020).
Balance Sheet
The balance sheet of Walt Disney has been analyzed by focusing on several key elements such as
the current assets, current liabilities, shareholder equity, etc. The liquidity ratio of the business is
one of the key metrics that has been examined to ascertain whether can fulfill its short-term it
financial obligations. Both current, as well as quick ratios have been computed. It has been observed
that there is a gradual decline in its liquidity ratio. For instance, in the year 2013, its current ratio
was 2.85. However, in the year 2017, it declined to 0.75 %. Similarly, the quick ratio of Walt
Disney in 2013 was 2.39, but on 2017 it declined to 0.64. A higher liquidity ratio is considered to be
better for a company. In the case of Walt Disney, it can be observed that its financial health has
declined as compared to the past. The continuous decline of the liquidity ratio is a matter of concern
for the business since it affects its ability to take care of its short-term financial obligations .
The debt-to-equity (D/E) ratio has also been examined in order to examine its financial leverage.
This ratio has helped to identify the extent to which the shareholder’s equity of the concern can aid
in fulfilling the final obligations towards the creditors in case the business falters. The D/E ratio of
the firm in 2013 was 0.52. However, in 2017, the ratio is 1.25. During the years, there has been a
consistent increase in the D/E ratio indicating that with the passage of time the company has been
