Running Head: ACC 345
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7-1 Final Project Submission: Financial Analysis and Valuation Report
ACC 345
SNHU
August 13,2022
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Table of Contents
Company Background – Walt Disney ............................................................................................ 4
Purpose of Valuation ................................................................................................................... 4
Date of Valuation ........................................................................................................................ 4
Percent ownership being valued .................................................................................................. 4
Company history and business structure ..................................................................................... 5
Description of facilities, major assets, or equipment key to running the business ..................... 7
Overview of the management structure ...................................................................................... 8
Balance Sheet Analysis ................................................................................................................... 8
Liquidity and Dept-to-equity Ratio ......................................................................................... 8
Normalization Adjustments ...................................................................................................... 12
Industry And Economic Analysis .................................................................................................. 12
General Economic Overview .................................................................................................... 12
Output and Consumption ....................................................................................................... 12
Monetary and Trade Policy ................................................................................................... 13
Policies and Regulations ........................................................................................................ 14
Industry Analysis....................................................................................................................... 14
Supply and Demand............................................................................................................... 14
Regulation .............................................................................................................................. 15
Employment Issues ................................................................................................................ 15
Industry Outlook .................................................................................................................... 16
Final Valuation Calculation ......................................................................................................... 17
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Valuation Method ...................................................................................................................... 17
Income Approach .................................................................................................................. 17
Income Approach Calculation ............................................................................................... 18
Discount Rate ........................................................................................................................ 20
Final Calculation of Value ........................................................................................................ 25
References ..................................................................................................................................... 28
Appendix: ...................................................................................................................................... 29
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Company Background – Walt Disney
Purpose of Valuation
The valuation of a business refers to the process which helps in ascertaining the current
worth of a business entity. Such a process involves a series of processes and procedures that helps
to make an estimation of the economic value of a company. The determination of the business
value can be useful for diverse reasons such as knowing the sale value, taxation purposes, and the
establishment of partner-based ownership. Koseoglu has identified business valuation as an
important strategic subject that incidences the ongoing activities of an entity (Köseoğlu &
Almeany, 2020). In the specific context, a comprehensive business valuation of the Walt Disney
business entity has been carried out.
The primary objective of the business valuation is to gather relevant information pertaining
to the economic value of the organization. The figures and information that have been collected
can be utilized for the purpose of making estimations and projections about the firm’s financial
performance, including profitability. Furthermore, it will be possible to determine the entity’s
overall financial position in the evolving business landscape. The business valuation can be
considered to be an extremely informative and valuable resource for potential investors of the
company.
Date of Valuation
The date on which the business valuation of the Walt Disney Company has been conducted
is June 30, 2022.
Percent ownership being valued
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In Waly Disney organization, more than half of the company is held by institutions. This gives
them significant power to influence how the business entity operates and functions in the market
setting (Yahoo, 2022). The institutional investors currently hold around 64. 98 % of outstanding
shares, which gives them ample power within the organization. One of the largest institutional
investors is the Vanguard Group Inc which is a major shareholder of the company since it has 7.6
% of outstanding shares in the firm. Insider ownership in the company is negligible since it is less
than 1 % (Yahoo, 2022). The general public has around 34.9 5 % of the company’s ownership.
The breakdown of the ownership structure of Walt Disney has been presented below:
Source: (Yahoo, 2022)
Company history and business structure
The Walk Disney Company came into existence in the year 1923. It is a U.S.-based
multinational mass media firm as well as an entertainment conglomerate. The business entity is
considered to be one of the chief organizations that have brought about revolutionary changes in
the American animation landscape. With the passage of time, the company has grown from
strength to strength, and it has succeeded in adapting to the evolving business ecosystem to
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transform its offerings. Walt Disney operates along with its subsidiaries in two major segments,
including Disney Media and Entertainment Distribution (DMED) as well as Disney Parks,
Experiences and Products (DPEP) (Fiscal Year 2021 Annual Financial Report - the walt disney
company, 2022).
Since the very inception of the company, it has succeeded in moving forward by effectively
tackling numerous challenges and obstacles. For the initial four years, the company continued to
focus on its ‘Alice Comedies.’ However, in the year 1927, it made the decision to start working
on an all-cartoon series. Since then, there has been no looking back for the business firm. A
major turning point for the business was the creation of the cartoon character called ‘Mickey
Mouse.’ It emerged as a cartoon star that became synonymous with the very identity of the
company. While the cartoon was gaining high popularity in the market, the company soon realized
that the merchandising of the popular animated characters could serve as a vital source of revenue
for the business entity. Thus, began the emergence of Disney merchandising which added to the
financial strength and viability of the company.
Gradually, the business establishment ventured into the creation of full-length movies. It
took almost seven years for the company to make the famous animated film called ‘Snow White
and Seven Dwarfs.’ The company tasted success because very soon, the film became the highest-
grossing movie of all times at the time. With every passing year, the business focused on expanding
its forte and strengthening its brand image. For instance, in the 1940s, its two popular features
named, Fantasia and Pinocchio, were released. They were considered to be exceptional technical
masterpieces during those times. The 1950s was also considered to be a successful phase for the
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company since it opened its new park, which was considered to be the very first theme park. It
further boosted the popularity of the company in the international setting (Saraswati et al., 2021).
The company has been working in four distinctive areas, including the Walt Disney Studios, Media
Networks, Parks and Resorts as well as Interactive Media. Such a diverse business strategy enables
the Walt Disney Company to effectively maintain the synergy and achieve its business goals by
focusing on the related business activities and processes. The organizational structure of the
company facilitates proper integration and engagement between diverse departments and business
units. Such a structure has helped the company to gain a competitive advantage in the market
setting.
Description of facilities, major assets, or equipment key to running the business
The functioning of the Walt Disney company is influenced by a diverse range of elements such
as facilities, major assets or equipment.
• The company owns several popular networks such as ABC, The Disney Channel, Disney
Plus, The National Geographic, etc. These networks act as useful platforms that enable the
business to expand its customer base at the global level.
• The business has a number of theme parks in diverse locations, which helps the business
to diversify its entertainment offering. Some of the most popular theme parks of the
company are Hong Kong Disneyland, Disneyland Paris, Tokyo DisneySea, Shanghai
Disneyland Park, and many more (Fiscal Year 2021 Annual Financial Report - the walt
disney company, 2022).
• The Walt Disney Company Studio is a vital division of the company that mainly involves
a wide range of renounced film production companies. Some of the most popular
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companies include W Disney Pictures, Pixar, Marvel Studios, and many more. The studio
produces high-grossing movies, which adds to the revenue of the company.
The company has succeeded in expanding its capabilities while operating in the market, which
has helped it to continuously adapt to the evolving business landscape. For instance, in the
digitalized era, the company has introduced a number of online streaming services. Such a strategic
move has not only expanded its assets but it has helped the business to diversify its offerings.
Overview of the management structure
The management structure of the Walt Disney Company can be considered to be a
cooperation multidivisional structure. There exist several business units or segments which help
to bring better clarity within the organizational setting. Such a structure facilitates the company to
leverage its core competencies in diverse areas and function in a coordinated manner to achieve
the organizational goals and objectives. The executive Leadership team plays a key role in offering
guidance and strategic direction to the entire company. The Board of Directors bring in immense
knowledge and experience and accelerate the long-term value within the entity. The clear
segregation between the managerial level, the secondary level as well as the apex level helps the
company to follow a methodical and coordinated approach while conducting the business
operations. The managerial hierarchy that is adopted by Walt Disney is ideal since it is a large
company that operates globally.
Balance Sheet Analysis
Liquidity and Dept-to-equity Ratio
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
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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 it can fulfill its short-term
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
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been increasing its reliance on debt or borrowed money. Thus, there is a higher risk of bankruptcy in
case any contingency arises.
Assets
The horizontal analysis of the balance sheet of the company has shed light on a number of
key elements in the Asset category. For instance, during the period, there has been a significant
increase in the value of the ‘property, plant and equipment’ asset of the firm. While in 2013, the
value of the specific asset was USD 18,733, in 2017, its value increased to USD 25,006. The
change in the value of ‘cash and cash equivalents’ is not that perceptible during the period since
in 2013, it stood at USD 3931, and in 2017, it stood at USD 4017. The total assets of the company
in 2013 was USD 82,385, but it has increased to USD 1,20,483. There has been a consistent rise
in the asset value of Walt Disney (Disney cash flow statement 2009-2022: DIS. Macrotrends,
2021).
Liabilities
There has been a significant rise in the accounts payable component of the firm. While in
2013, the accounts payable was USD 4561, it increased to 19,595 in 2017. This implies that the
firm has these financial obligations that it needs to fulfill in the short run. During the period, there
has been a significant surge in Walt Disney’s long-term liability since, in 2013, it was USD 12,776,
whereas in 2017, it stands at USD 25,562. The firm must strategically manage its financial
obligations so that its rising liability will not affect its business operations.
Stockholder’s Equity
The stockholder’s equity refers to the assets that remain in the business after the fulfillment
of all the liabilities. The total stakeholder equity of Walt Disney in 2013 was USD 82,385. But in
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2017, it stands at 1,20,483, which indicates that there has been an increase by almost 46.2 %. With
the passage of time, the amount of funds that owners have been investing has been increasing.
Some of the major competitors of Walt Disney include Warner, Sony Inc., etc. The emphasis is on
Sony since it has been showcasing exceptional performance in recent times (Disney cash flow
statement 2009-2022: DIS. Macrotrends, 2021).
The ‘Return on Total Assets’ of Walt Disney stands at merely 0.1 %, Sony’s position seems
to be better at around 2.61 % (as of January 04, 2018) there is an opportunity for Walt Disney to
increase its ‘Return on Total Assets’ by expanding its market presence in prosing geographical
regions like China.
Income Statements
The income statement of Walt Disney has been investigated to evaluate its profitability. It
has been observed that in 2013, its gross profit was USD 20,007 whereas in the year 2017, it has
increased to USD 24,831. There has been a considerable increase in its profitability However,
while comparing the profit position with the previous year, a slight decline can be observed since,
in 2016, the gross profit was USD 25,639. The return on equity (ROE) is one of the main
profitability ratios that has been computed to analyze its performance in terms of profits. In 2013
its ROE was 0.1 %, and in 2017, it is 0.2 %. The change is negligible. However, it can be inferred
that the company is in a slightly better position to generate profits as compared to the past.
The cash flow of Walt Disney from operating activities in 2017 is USD 12,343, whereas in 2013
was USD 13,136. When comparing the figure with the previous year's figure, there is a decline in
the cash flow. However, when it is considered with several years, the cash flow seems to be
consistent and stable. Throughout the period, the cash flow from investing activities is negative.
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In 2017 it stood at USD - 4111 and in 2016 it was USD -5758. Even though there has been a slight
improvement in this regard, it implies the business has incurred substantial cash due to its
involvement in investment activities. The cash flow from financial activities in 2017 was USD -
8959 while in the previous year it stood at USD – 7220. Based on projections, it is assumed that
the net cash flow of Walt Disney will increase over the years. The main assumption that are made
includes a discount rate of 13.1 %.
As the net income of the firm is growing consistently, it has a decent dividend paying
capacity indicating that it is on the right track to pay out dividends this year. The consistent increase
could lead to an increase in its dividend payout ratio.
Normalization Adjustments
No major normalization adjustments have been made while analyzing the balance sheet of
Walt Disney. So, the information is not ample to ascertain whether the final valuation is at a
premium or a discount. While examining the income statement of the firm, since limited
information is available, it cannot be ascertained whether there are any non-recurring or
extraordinary items that need to be removed or not. Thus no items have been eliminated while
examining the financial statements of the organization and capturing its financial health.
Industry And Economic Analysis
General Economic Overview
Output and Consumption
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There are many trends and factors that are affecting The Walt Disney Company’s output
and consumption. Recently, a great impact has been seen on unemployment and Gross Domestic
Product (GDP) because of the arrival of the covid-19 pandemic on 2020. It has been identified that
GDP has directly impacted unemployment. The unemployment rate has increased with the Falling
GDP. Its effect can also be seen in The Walt Disney Company. This company has shut down its
work process, cruises, all major parks, and other entertainment facilities because of the spreading
coronavirus outbreak that has resulted in furloughed 77,000 employees (Guardian News and
Media, 2020). During this pandemic period, it has been seen that almost industries were severely
impacted that, has reduced their new content producing capacity. Thus, it can be said that closing
recreation parks and losing jobs in Walt Disney Company has resulted in affecting the economic
growth of the company.
Monetary and Trade Policy
The monetary and trade policies had a significant impact on the entertainment industry
because of the tariffs and other sanctions made against China. For instance, it has been identified
that the US tariffed $200 million on Chinese products with an additional threatening tariff of $300
million in 2019 (Guilfoyle, 2019). These additional sanctions can diminish potential profit and
affect release dates in case it does not get released in China. One great example of profit from the
Chinese market is the film Warcraft.
Therefore, it is important for The Walt Disney Company to build new attractions within its
entertainment parks and deal with trade issues related to the maintenance of the goods purchases.
Further, The Walt Disney Company has included multiple attractions like “Galaxy Edge,” Harry
Potter, and Star Wars-themed rides within the last several years (Guilfoyle, 2019). As per the New
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york times report, a trade deal has been signed between China and the United States in the first
half of 2020. This deal has aimed to maintain its current tariffs by selling $200 billion in products
to China from the US (Swanson & Rappeport, 2020). However, a 6% decrease in imports has been
seen by the US within the first 4 months of 2020 because of the coronavirus outbreak. This can
result affect The Walt Disney Company for the maintenance and additions of its facilities and
parks.
Policies and Regulations
Recently, the United States has decided to implement several new policies to help the
citizens and employees by focusing on the current economic status. During this pandemic period,
an important part is played by the CARES Act as it gave a stimulus package to every citizen where
they have provided a $1,200 cash sum with an additional $500 for children in 2020. For instance,
the State of Florida received 12 weeks of unemployment through the CARES Act. It has been
identified that the restrictions, regulations, and closures have resulted in the furlough of 100,000
employees for The Walt Disney Company, but the company has maintained its employees’ health
care for up to one year (Kelly, 2020). This has resulted to high cost for the company.
Recently, the new health precautions and social distancing norms have restricted the
occupancy of amusement parks. According to Kelly, this entertainment business was going
through fewer profits because of the economic recession, new health precautions, social distancing,
and the lack of travel and crowd aversions until the availability of vaccines (Kelly, 2020).
Industry Analysis
Supply and Demand
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In January 2020, a trade agreement was signed by the Trump administration with China
with an aim to maintain the current tariffs and to increase its purchase of products by 6% every
year. However, this agreement is in limbo because of current China and the United States
relationship and the covid-19 pandemic. This has resulted in affecting the supply market to The
Walt Disney Company as well as the entertainment industry. The fact is the entertainment industry
is utilizing many of China’s exports for entertainment parks and movie production. However, The
Walt Disney Company’s expansion can get affected by Natural resources like aluminium and steel
in case the cost of supplies keeps increasing.
Further, it has been identified that The Walt Disney Company is rapidly leading in many
categories after a significant loss in revenue. The company is currently acquired 23.61% of the
market share for the cable industry and 13.97% of Comcast Corporation. However, there are many
other categories where the company is leading, but there is a need to continue the success of
Disney+, maintain parks and resorts, and continue major movie productions.
Regulation
The restrictions to go out during the pandemic period have hit hard the entertainment
industry. It has been identified that every single aspect of The Walt Disney Company parks and
productions has been impacted because of the restrictions like capacity limits and social distancing.
This restriction has also resulted in the furlough of the park employees and the production of the
shows and movies (Kelly, 2020). Therefore, these regulations have downgraded the entertainment
industry market as well as showing a significant loss of revenue.
Employment Issues
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The Walt Disney Company had to take a cruel step to furlough a huge number of employees
because of the closures and pandemics. The currently listed percentage for directors and producers
is at 5%, designers and multimedia artists are at 4%, and actors are at 1%. For instance, more than
an average of 11% has been seen by the persons working in the film, camera operator, and video
editors within the industry. Further, a competitive demand and supply of capable employees have
been seen. Thus, it becomes very important now for the company to pay higher to their employees
to keep them within the company.
Industry Outlook
In the past few years, The Walt Disney Company has faced many challenges and obstacles,
but still, it has maintained its competition in the entertainment industry. This company has vast
areas of income that include parks, studio developments, resorts, and a new streaming service
Disney +. This new streaming platform is presently competing with Hulu, Amazon Prime, Netflix
etc.
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Final Valuation Calculation
Valuation Method
There are three methods of valuation calculation, including asset approach, income
approach, and market approach.
Asset Approach
The asset approach to valuation deals with the net asset value (NAV) of a company or
the fair market value of the total assets of the company after subtracting its total liability in
order to determine the cost of recreating the business. It includes a set of methods for
calculating the value of a company on the basis of its balance sheet. This method of company
valuation is at times hard to understand and involves complexity. However, the asset approach
is an ideal valuation method for the Walt Disney Company. It would enable the company to
determine the current value of the assets.
Income Approach
The income approach to company valuation takes into consideration the future quality
as well as quantity of the income stream. There are two ways in which the income approach
can be used. It includes the discounted cash flow method and the capitalization of cash flow
method. The discounted cash flow method is considered to be more flexible in comparison to
the capitalization of the cash flow method. It allows for variations in terms of growth rates,
margins, as well as debt repayments that are not likely to remain the same in the future years.
On the other hand, the capitalization of the cash flow method can be used for the valuation of
a company when the organization expects a stable growth and profit margin in the future years.
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The Walt Disney Company is likely to register stable growth in the years to come. Therefore,
it can make use of capitalization of the cash flow method for its valuation.
Market Approaches
The market approach to valuation is also referred to as the sales comparison approach.
It is a valuation method that is used in order to identify the appraisal value of a company by
taking into consideration the market prices of comparable businesses or assets that are still
available or have been sold recently. There are two market approaches that can be used for the
evaluation of the companies. It includes the Guideline Public Company Method and Guideline
Transaction Method. The Guideline Transaction Method determines the value of a company
on the basis of pricing multiples that are derived from the sale of similar companies as the
subject company. On the other hand, the Guideline Public Company Method is used for the
valuation of a company on the basis of trading multiples that are taken from similar public
traded companies as the subject company.
Income Approach Calculation
Prospective Analysis
In order to determine the path on which the Walt Disney Company is moving, it is
important to take a look at the past revenue history of the company. The projected income
statement shows the expected income as well as the revenue of the business in the future years.
The revenue of Walt Disney company is expected to increase over the period of five years.
The Walt Disney Company
Projected Income Statement
(In millions)
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2018
2019
2020
2021
2022
Termi
nal
Revenue
$
57,90
0
$
60,80
0
$
63,80
0
$
67,00
0
$
70,40
0
$
73,90
0
Growth
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
Gross profit
5,790
6,080
6,380
6,700
7,040
7,390
Percentage
of revenue
10.0%
10.0%
10.0%
10.0%
10.0%
10.0%
Operating
expenses
4,053
4,256
4,466
4,690
4,928
5,173
Percentage
of revenue
7.0%
7.0%
7.0%
7.0%
7.0%
7.0%
Other income
(expense)
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Interest income
(expense)
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
-
-
-
-
Percentage
of revenue
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
Net income
$
1,737
$
1,824
$
1,914
$
2,010
$
2,112
$
2,217
Discount Rate
The discount rate of a company can be defined as the rate of return used for the
valuation of a business in order to convert the future anticipated cash flows to the present value
in a discounted cash flow approach. In other words, it is the present value of the anticipated
future cash flows under discounted cash flow analysis. In order to calculate the discount rate,
a number of companies make use of the weighted average cost of capital (WACC). The
discount rate of the Walt Disney Company has been found to be 13.1%.
WALT Disney INC.
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Development of Discount Rate and Capitalization
Rate
Rate
Note
Risk-free long-term U.S. Government bond rate
2.6
%
(A)
Equity risk premium
6.0
(B)
Industry premium estimate
1.5
(C)
Specific company risk
3.0
(D)
Cost of equity (Discount rate)
13.1
Sum of (A) - (D)
Less: Long-term sustainable growth rate
(2.5)
(E)
Capitalization rate
10.6
%
(A) Yield on the twenty-year U.S. Treasury bond as of December 31, 20XX, per the U.S.
Treasury
(B) Long-horizon expected return of large stocks over risk-free securities, U.S. Equity Risk
Premium (6.0%)
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(C) SIC code XX, 1.5%
(D) Appraiser's judgment concerning company-specific risk
(E) Estimated long-term growth rate based on inflation, Federal Reserve Bank of
Philadelphia
Sources:
United States Treasury
***You may use other sources to update any of these values; list the applicable source if
used. Existing
Values are actual figures obtained from sources used in prior years. You may use
these as default
Values since a detailed development of the discount rate are beyond the scope of this
class.
Valuation Calculation
Walt Disney Inc.
Discounted Cash Flow
Method (In millions)
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Projected for Years Ending
December 31,
Term
inal
2018
2019
2020
2021
2022
Valu
e
Forecasted Net
Income
$
1,737
$
1,824
$
1,914
$
2,010
$
2,112
$
2,217
Plus:
Depreciation
300
400
450
520
600
650
Less:
Capital
expenditures
(500)
(550)
(600)
(700)
(400)
(300)
Debt reduction
(100)
(120)
(150)
(200)
(60)
(90)
Net Cash Flow
$
1,437
$
1,554
$
1,614
$
1,630
$
2,252
$
2,477
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Present value of
cash flows
$
1,271
$
1,215
$
1,116
$
996
$
1,217
Discount rate:
13.1
%
Terminal period
cash flows
$
2,477
Capitalization rate:
10.6
%
÷
10.6
%
Capitalized
terminal cash flow
$
23,36
8
Net present value of terminal cash
flow, discounted into perpetuity
$
12,60
0
Net present value - five
years ending YE: 2022
$
5,800
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Net present value of
terminal cash flow
12,60
0
Total indication of value
(rounded)
$
18,40
0
Final Calculation of Value
In order to calculate the final value of the Walt Disney Company, the depreciation, net income,
capital expenses, cash flow, as well as debt have been taken into consideration. The method
that has been selected for the valuation of the company is the discounted cash flow method.
Walt Disney Inc.
Final Computation of Value
As of December 31, 2018
Income
Approach:
Discounted Cash
Flow Method
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Indicated Value of Equity
$ 18,400
Weight
100
%
Weighted Value (rounded)
$ 18,400
Indicated value with voting rights
$ 18,400
Less: DLOC (Discount for Lack of Control)
15.0
%
(2,760)
Marketable, minority value
15,640
Less: DLOM (Discount for Lack of
Marketability)
25.0
%
(3,910)
Nonmarketable, minority value
$ 11,730
Value of a one-percent interest (in millions)
$ 117
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*if valuing an interest greater than 50% then the DLOC will not
apply
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References
Fiscal Year 2021 Annual Financial Report - the walt disney company. (2022). Retrieved June
30, 2022, from https://thewaltdisneycompany.com/app/uploads/2022/01/2021-Annual-
Report.pdf
Köseoğlu, S. D., & Almeany, S. S. A. (2020). Introduction to Business Valuation. In Valuation
Challenges and Solutions in Contemporary Businesses (pp. 1-23). IGI Global.
Saraswati, A., Widhiyanti, K., & Fatmawati, N. G. (2021). The character design of the
animated film Raya and The Last Dragon in building Southeast Asian identity
politics. Satwika: Studies of Cultural Sciences and Social Change, 5(2), 254-267.
Yahoo! (2022). Yahoo! Finance. Retrieved June 30, 2022, from
https://finance.yahoo.com/news/could-walt-disney-company-nyse-162826512.html
Disney cash flow statement 2009-2022: DIS. Macrotrends. (2021). Retrieved July 21, 2022,
from https://www.macrotrends.net/stocks/charts/DIS/disney/cash-flow-statement
Romadlon, F. (2020). Mendefinisikan ulang pola pembelajaran daring: antara sharing
knowledge dan transfer etika. COVID-19 Dalam Ragam Tinjauan Perspektif.
Guardian News and Media. (2020, May 22). 'I can't get any help': Disney World Staff go weeks
without unemployment benefits. The Guardian. Retrieved August 6, 2022, from
https://www.theguardian.com/us-news/2020/may/22/disney-world-furloughed-workers-
unemployment-covid-19
Guilfoyle, S. (2019, May 28). Big bad trade war, earnings recession, trading Disney: Market
recon. RealMoney. Retrieved August 6, 2022, from
https://realmoney.thestreet.com/investing/big-bad-trade-war-earnings-recession-
trading-disney-market-recon-14972765
ACC 345
29
29
Kelly, J. (2020, April 24). Disney furloughs 100,000 workers, top execs get to keep their jobs:
Reports FT. Forbes. Retrieved August 6, 2022, from
https://www.forbes.com/sites/jackkelly/2020/04/22/disney-furloughs-100000-workers-
while-top-executives-will-still-get-big-bonuses/?sh=65c1039b5a96
Swanson, A., & Rappeport, A. (2020, January 15). Trump signs China trade deal, putting
economic conflict on pause. The New York Times. Retrieved August 6, 2022, from
https://www.nytimes.com/2020/01/15/business/economy/china-trade-deal.html
Appendix:
Comp
any
WALT
DISNEY
Balance
Sheets (in
millions)
December 31, 2014
through 2018
C -size
201
3
201
4
201
5
201
6
201
7
201
3
20
14
201
5
20
16
20
17
ACC 345
30
30
Assets
Curren
t
Assets
Cash and cash
equivalents
$
3,9
31
$
3,42
1
$
4,2
69
$
4,6
10
$
4,0
17
4.8
3.5
4.2
4.2
3.
3
%
Accounts
receivable, net
6,9
67
7,82
2
8,0
19
9,0
65
8,6
33
8.5
8.0
7.8
8.3
7.
2
Inve
ntor
y
1,4
87
1,57
4
1,5
71
1,3
90
1,3
73
1.8
1.6
1.5
1.3
1.
1
Other current
assets
605
794
962
693
588
0.7
0.8
0.9
0.6
0.
5
Total
current
assets
12,
990
13,6
11
14,
821
15,
758
14,
611
15.
8
13.
9
14.
4
14.
4
12
.1
ACC 345
31
31
Property,
plant &
equipment,
net
18,
733
18,5
41
17,
901
23,
421
25,
006
22.
7
18.
9
17.
5
21.
5
20
.8
Other
assets
Intan
gible
s
45,
387
60,7
80
64,
419
63,
200
75,
274
55.
1
62.
1
63.
0
58.
0
62
.5
Othe
r
asset
s
5,2
75
5,00
0
5,0
64
6,6
20
5,5
92
6.4
5.1
5.0
6.1
4.
6
Total
other
assets
50,
662
65,7
80
69,
483
69,
820
80,
866
61.
5
67.
2
68.
0
64.
1
67
.1
Total
Assets
$
82,
385
$
97,9
32
$
1,0
2,2
05
$
1,0
8,9
99
$
1,2
0,4
83
100
.0
10
0.0
99.
9
10
0.0
10
0.
0
%
ACC 345
32
32
Liabilities and
Stockholders' Equity
Curren
t
Liabili
ties
Accounts
payable
$
4,5
61
$
13,2
92
$
16,
334
$
16,
842
$
19,
595
5.5
13.
6
16.
0
15.
5
16
.3
%
Accrued
expenses & other
current liabilities
-
-
-
-
-
-
-
-
-
Current portion
of debt and leases
-
-
-
-
-
-
-
-
-
-
Total
current
liabilities
4,5
61
13,2
92
16,
334
16,
842
19,
595
5.5
13.
6
16.
0
15.
5
16
.3
Long-Term
Liabilities
ACC 345
33
33
Long-term debt
and lease
obligations
12,
776
12,6
31
12,
773
16,
483
19,
119
15.
5
12.
9
12.
5
15.
1
15
.9
Other long-term
liabilities
-
5,94
2
6,3
69
7,7
06
6,4
43
-
6.1
6.2
7.1
5.
3
Total
long-term
liabilities
12,
776
18,5
73
19,
142
24,
189
25,
562
15.
5
19.
0
18.
7
22.
2
21
.2
Total
Liabilitie
s
17,
337
31,8
65
35,
476
41,
031
45,
157
21.
0
32.
5
34.
7
37.
6
37
.5
Stockholders'
Equity
Common stock,
less treasury
33,
440
34,3
01
35,
122
35,
859
36,
248
40.
6
35.
0
34.
4
32.
9
30
.1
Additional paid
in capital
-
-
-
-
-
-
-
-
-
ACC 345
34
34
Retained
earnings
32,
795
33,7
34
34,
028
36,
088
42,
606
39.
8
34.
4
33.
3
33.
1
35
.4
Other
comprehensive
income (loss)
-
1,1
87
-
1,96
8
-
2,4
21
-
3,9
79
-
3,5
28
(1.
4)
(2.
0)
(2.4
)
(3.
7)
(2.
9)
Total
Stockhol
ders'
Equity
65,
048
66,0
67
66,
729
67,
968
75,
326
79.
0
67.
4
65.
3
62.
3
62
.6
$
82,
385
$
97,9
32
$
1,0
2,2
05
$
1,0
8,9
99
$
1,2
0,4
83
100
.0
99.
9
100
.0
99.
9
10
0.
1
%
ACC 345
35
35
Company
ABC Inc.
Walt
Disney
inc.
Statement
s of
Income
(in
millions)
December
31, 2014
through
2018
C -
201
3
201
4
20
15
201
6
201
7
20
13
20
14
20
15
20
16
20
17
Sales
$
45,0
41
$
48,8
13
$
52,
$
55,6
32
$
55,1
37
10
%
10
%
10
%
10
%
10
ACC 345
36
36
46
5
0.
0
0.
0
0.
0
0.
0
0.0
%
Cost of
Sales
25,0
34
26,4
20
28,
36
4
29,9
93
30,3
06
55
.6
54
.1
54
.1
53
.9
55.
0
Gross
Profit
20,0
07
22,3
93
24,
10
1
25,6
39
24,8
31
44
.4
45
.9
45
.9
46
.1
45.
0
General,
administrat
ive and
non-
operating
expenses
10,7
71
10,9
93
10,
93
0
11,4
37
11,0
56
23
.9
22
.5
20
.8
20
.6
20.
1
Operating
Income
9,23
6
11,4
00
13,
14,2
02
13,7
75
20
.5
23
.4
25
.1
25
.5
24.
9
ACC 345
37
37
17
1
Other
Income
(Expense)
Interest
(expens
e)
384
846
69
7
666
13
0.
9
1.
7
1.
3
1.
2
-
Gain
(loss) on
sale of
assets
-
-
-
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
-
-
384
846
69
7
666
13
0.
9
1.
7
1.
3
1.
2
-
Normalizat
ion
adjustment
s
ACC 345
38
38
Non-
recurrin
g items
-
-
-
-
-
-
-
-
-
-
Legal
settleme
nts
-
-
-
-
-
-
-
-
-
-
Other
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Net
income,
before tax
$
9,62
0
$
12,2
46
$
13,
86
8
$
14,8
68
$
13,7
88
21
.4
%
25
.1
%
26
.4
%
26
.7
%
24.
9
%
