Description
valuation and financial analysis of Disney (income statement, balance sheet, ratios estimates)
can you please provide me the estimates under an excel sheet?
including usefull graphs and charts
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Explanation & Answer
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Running head: WALT DISNEY
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Walt Disney
Name
Course
Professor
Date
WALT DISNEY
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Walt Disney Valuation and Financial Analysis
Income Statement
The revenues of Walt Disney Co. reduced from 2016 to 2017 and then increased from
2017 to 2018 at a value higher than that of 2016. The operating income (US$ 14804 million)
improved from the FY 2017 to FY 2018 and was up to a point that was way higher compared to
the 2016 level. Moreover, the income before taxes for Walt Disney Co increased from 2017 to
2018 though never got to a point of the 2016 level. On the other hand, the net income in the FY
was at US$ 12,598 million and this was an improvement. This indicated that the market
conditions had improved and the company was doing better as compared to the previous
financial year.
Statement of Comprehensive Income
WALT DISNEY
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The Walt Disney Co. net income reduced from 2016 to 2017 but then ended up
increasing from 2017 to 2018 and exceeded the 2016 level.
The comprehensive income also increased from 2016 to 2017 and further increased from 2017 to
2018. The figures are captured in the excel file shown.
Ratios and Valuation
Debt to Assets Ratio
The ratio is used in calculating the total debt as divided by the total assets (Khadafi, Heikal &
Ummah, 2014).
WALT DISNEY
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2018 Calculation
Debt to assets = Total debt ÷ Total assets
= 20,874 ÷ 98,598 = 0.21
Financial Leverage
This is also a solvency ratio that is applied when calculating the total assets divided by
the total shareholders’ equity. The Walt Disney Co.’s financial leverage was better off in 2017 as
compared to 2016. However, it ended up declining in the close of FY 2018.
2018 Calculation
Financial leverage = 98,598 ÷ 48,773 = 2.02
Interest Coverage Ratio
This is a solvency ratio that...