Walt Disney Financial Analysis

In: Business and Management

Words 5438
Pages 22

Walt Disney Company
Financial Analysis

Managerial Finance BUSA 302
Dr. Frederick Wolf
May 24, 2007

Completed By:
Shanna Baumgarten
Michaela Baylous
Laura Buckner
Kari Gurtel
Table of Contents: • Executive Summary . . . 3 • Background . . . 3 • Financial Statement Analysis . . . 5 o Balance Sheet . . . 5 o Income Statement . . . 8 o Cash Flow Statement . . . 9 • Ratio Analysis . . . 10 o Liquidity . . . 10 o Profitability . . . 12 o Activity . . . 12 o Leverage . . . 14 o Valuation . . . 15 • Sales Forecast . . . 15 o Projected Sales . . . 15 o Forecast Earnings . . . 17 o Pro Forma Statement . . . 17 o Sustainable Growth . . . 18 • Risk Assessment . . . 19 o Economic Conditions . . .20 o Changes in Consumer Demand & Preferences . . . 20 o Changes in Regulation . . . 21 o Intellectual Property Rights . . . 21 o Employee Costs . . . 21 o Pixar . . . 22 o Interest Rates . . . 22 o Foreign Exchange Rates . . . 22 o Restrictions on Trade . . . 23 o Taxes . . . 23 • Financial Restructuring . . . 23 • Recommendations to Management . . . 23 • References . . . 26 • Appendix . . . 27

Executive Summary:

The Walt Disney Company Financial Analysis details the finances at The Walt Disney Company. The analysis includes a brief summary of the history of the company along with important financial data to determine the value of the company. There is an analysis of the financial statements, a genuine look at different ratios to consider before investing, a sales forecast, possible risks facing the company, and recommendations to management. Overall Disney seems to be a good…...

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