The Walt Disney CompanyEssay Preview: The Walt Disney CompanyReport this essayThe Walt Disney Company (DIS)Financial Accounting (Data source Annual Report and not Yahoo Finance).1.Cash Flow from Assets = Cash Flow to Creditors + Cash Flow to Stockholders  *All numbers in millionsCash Flow from Assets  2015($)Cash Flow to Investors 2015($)Operating Cash Flow11,089 Cash Flow Paid to Creditors-25  EBIT13,751  Interest117  Depreciation2,354  Net new borrowing142  Tax5,016 Capital Spending4,806Cash Flow to Stockholders8,337  Ending Net Fixed asset71,424 Dividends Paid3,063  Begging Net Fixed asset68,972 Repurchase of stock6,095  Depreciation2,354  Common stock821 Additions to NWC-1,453 Total7,736Total8,312*CFFA = Operating cash flow – net capital spending – changes in net working capital Net capital spending = ending fixed assets – beginning fixed assets +depreciationChanges in NWC = ending NWC – beginning NWC*Cash flow to creditors = interest paid – net new borrowing = interest paid – (ending long-term debt – beginning long-term debt) Du Pont IdentityROE = Profit Margin (Profit/Sales) * Total Asset Turnover (Sales/Assets) * Equity Multiplier (Assets/Equity)Year 201520142013Profit Margin0.160.150.14Profit8,3827,5016,136Sales52,46548,81345,041Total Asset Turnover0.590.580.55Sales52,46548,81345,041Assets88,18284,14181,241Equity Multiplier 1.811.751.69Assets88,18284,14181,241Equity48,65548,17848,150ROE0.170.160.13Comment on the changes in each DuPont identity:
The increase in ROE each year can be seen from the increase in all three of the DuPont identity (Profit margin, Asset turnover, equity multiplier) over the years, implying the operational efficiency, asset utilization and financial leverage has increased over the years.External Financing NeedIncrease in Asset 88,182,000 *5%4,409,100Increase in Account Payable7,844,000*5%392,200Increase in NI8,382,000*1.05*RR5,544,693Retained Ratio(8,382,000-3,063,000)/8,382,0000.63EFN(1,527,793)*5% GrowthInternal Growth RateInternal growth rate = (ROA x b) / [1 – ROA x b]Year 201520142013Profit8,3827,5016,136Assets88,18284,14181,241ROA0.100.090.08Dividend Paid 3,0631,5081,324b0.630.800.78Internal Growth Rate6.42%7.67%6.30%Sustainable Growth RateSustainable growth rate = (ROE x b) / [1 – ROE x b]=12.0%*ROE=0.17, b=0.63Year 201520142013ROE0.170.160.13b0.630.800.78Sus. Growth Rate12.09%14.66%11.35%
Additional information of current company:
Sustainability Strategy
The DuPont Sustainability Strategy, or Sustainability Index, will provide a framework for assessing the long term value and sustainability of the corporate assets and liabilities of a company from various sectors. This data is collected from a variety of sources. The Sustainability Index uses this data to assess economic sustainability in the context of a company’s core business plan and economic well-being: management, workforce and capital allocation. The Sustainability Index is designed for broad use through a broader set of metrics including business, market, tax, operating profit per share, management salary, dividends and capital gain/loss ratios. In this category, companies with a high C&R-to-GAX ratio (e.g. Berkshire Hathaway and BHP Billiton) or a low EPS-to-BIT return score have a more in-depth understanding of their finances than the broadest broad set of companies available and, thus, the ability to understand their corporate future.
The following information is made available:
In addition to the current data, all companies currently on a GAX issued by the U.S. Government’s Sustainability Advisory Board on November 7, 2007.
For the report of the Sustainability Index
The DuPont Sustainability Strategy, or Sustainability Index will provide a framework for assessing the long term value and sustainability of the corporate assets and liabilities of a company from various sectors. This data is collected from a variety of sources. The Sustainability Index uses this data to assess economic sustainability in the context of a company’s core business plan and economic well-being: management, workforce and capital allocation. The Sustainability Index is designed for broad use through a wider set of metrics including business, market, tax, operating profit per share, management salary, dividends and capital gain/loss ratios. In this category, companies with a high C&R-to-GAX ratio (e.g. Berkshire Hathaway and BHP Billiton) or a low EPS-to-BIT return score have a more in-depth understanding of their finances than the broadest broad set of companies available and, thus, the ability to understand their corporate future.
The following information is made available:
In addition to the current data, all companies currently on a GAX issued by the U.S. Government’s Sustainability Advisory Board on November 7, 2007.
For the report of the Sustainability Index
The DuPont Sustainability Strategy, or Sustainability Index will provide a framework for assessing the long term value and sustainability of the corporate assets and liabilities of a company from various sectors. This data is collected from a variety of sources. The Sustainability Index uses this data to assess economic sustainability in the context of a company’s core business plan and economic well-being: management, workforce and capital allocation. The Sustainability Index is designed for broad use through a broader set of metrics including business, market, tax, operating profit per share, management salary, dividends and capital gain/loss ratios. In this category, companies with a high C&R-to-GAX ratio (e.g. Berkshire Hathaway and BHP Billiton) or a low EPS-to-BIT return score have a more in-depth understanding of their finances than the broadest broad set of companies available and, thus, the opportunity to understand their corporate future.
The following information is made available:
In addition to the current data, all companies currently on a GAX issued by the U.S. Government’s Sustainability Advisory Board on November 7 – December 6, 2013.
For the report of the Sustainability Index
The DuPont Sustainability Strategy, or Sustainability Index will provide a framework for assessing the long term value and sustainability of the corporate assets and liabilities of a company from various sectors. This data is collected from a variety of sources. The Sustainability Index uses this data to assess economic sustainability in the context of a company’s core business plan and economic well-being: management, workforce and capital allocation. The Sustainability Index is designed for
When considering Sustainability Index performance, the Sustainability Index is divided into three categories. SIFIs are a tool to help identify and identify financial sustainability issues that are most important to stakeholders such as companies who would like to see growth, profit sharing, shareholder value and performance. A SIFIs are a serviceable measure of the company’s performance through a simple and user-friendly process that facilitates better information sharing amongst stakeholders through a list of indicators that are often not readily accessible to users.
Solutions
While a well written and detailed SIFI is not needed to create a definitive Sustainability Index, the SIFIs can provide a basic benchmark for companies to measure their business success. Below is a summary of the three SIFIs that are common to companies with many distinct corporate structures:
Operating Income
Operating income is a key metric for companies to measure their success through a simple analysis of the SIFI. Operating income can be a critical indicator of financial stability in both a cash flow and EPS environment (Figure 2). Operating income can be the most fundamental indicator of Sustainability Index performance and, for any specific company, a highly variable and flexible set of attributes. The important point to keep in mind if attempting to identify Sustainability Index performance is evaluating the company’s bottom line and not on just one or two particular segments.
Employee Stock
A share is a company’s income that will be recognized in income statement accounts on a quarterly basis. Each year a company may obtain a share from a corporation, regardless of the organization. Certain corporate entities are considered “employees and employees of the Company in which their total assets meet the performance standards prescribed by the appropriate shareholder plan,” and typically hold
Additional information of current company:
Sustainability Strategy
The DuPont Sustainability Strategy, or Sustainability Index, will provide a framework for assessing the long term value and sustainability of the corporate assets and liabilities of a company from various sectors. This data is collected from a variety of sources. The Sustainability Index uses this data to assess economic sustainability in the context of a company’s core business plan and economic well-being: management, workforce and capital allocation. The Sustainability Index is designed for broad use through a broader set of metrics including business, market, tax, operating profit per share, management salary, dividends and capital gain/loss ratios. In this category, companies with a high C&R-to-GAX ratio (e.g. Berkshire Hathaway and BHP Billiton) or a low EPS-to-BIT return score have a more in-depth understanding of their finances than the broadest broad set of companies available and, thus, the ability to understand their corporate future.
The following information is made available:
In addition to the current data, all companies currently on a GAX issued by the U.S. Government’s Sustainability Advisory Board on November 7, 2007.
For the report of the Sustainability Index
The DuPont Sustainability Strategy, or Sustainability Index will provide a framework for assessing the long term value and sustainability of the corporate assets and liabilities of a company from various sectors. This data is collected from a variety of sources. The Sustainability Index uses this data to assess economic sustainability in the context of a company’s core business plan and economic well-being: management, workforce and capital allocation. The Sustainability Index is designed for broad use through a wider set of metrics including business, market, tax, operating profit per share, management salary, dividends and capital gain/loss ratios. In this category, companies with a high C&R-to-GAX ratio (e.g. Berkshire Hathaway and BHP Billiton) or a low EPS-to-BIT return score have a more in-depth understanding of their finances than the broadest broad set of companies available and, thus, the ability to understand their corporate future.
The following information is made available:
In addition to the current data, all companies currently on a GAX issued by the U.S. Government’s Sustainability Advisory Board on November 7, 2007.
For the report of the Sustainability Index
The DuPont Sustainability Strategy, or Sustainability Index will provide a framework for assessing the long term value and sustainability of the corporate assets and liabilities of a company from various sectors. This data is collected from a variety of sources. The Sustainability Index uses this data to assess economic sustainability in the context of a company’s core business plan and economic well-being: management, workforce and capital allocation. The Sustainability Index is designed for broad use through a broader set of metrics including business, market, tax, operating profit per share, management salary, dividends and capital gain/loss ratios. In this category, companies with a high C&R-to-GAX ratio (e.g. Berkshire Hathaway and BHP Billiton) or a low EPS-to-BIT return score have a more in-depth understanding of their finances than the broadest broad set of companies available and, thus, the opportunity to understand their corporate future.
The following information is made available:
In addition to the current data, all companies currently on a GAX issued by the U.S. Government’s Sustainability Advisory Board on November 7 – December 6, 2013.
For the report of the Sustainability Index
The DuPont Sustainability Strategy, or Sustainability Index will provide a framework for assessing the long term value and sustainability of the corporate assets and liabilities of a company from various sectors. This data is collected from a variety of sources. The Sustainability Index uses this data to assess economic sustainability in the context of a company’s core business plan and economic well-being: management, workforce and capital allocation. The Sustainability Index is designed for
When considering Sustainability Index performance, the Sustainability Index is divided into three categories. SIFIs are a tool to help identify and identify financial sustainability issues that are most important to stakeholders such as companies who would like to see growth, profit sharing, shareholder value and performance. A SIFIs are a serviceable measure of the company’s performance through a simple and user-friendly process that facilitates better information sharing amongst stakeholders through a list of indicators that are often not readily accessible to users.
Solutions
While a well written and detailed SIFI is not needed to create a definitive Sustainability Index, the SIFIs can provide a basic benchmark for companies to measure their business success. Below is a summary of the three SIFIs that are common to companies with many distinct corporate structures:
Operating Income
Operating income is a key metric for companies to measure their success through a simple analysis of the SIFI. Operating income can be a critical indicator of financial stability in both a cash flow and EPS environment (Figure 2). Operating income can be the most fundamental indicator of Sustainability Index performance and, for any specific company, a highly variable and flexible set of attributes. The important point to keep in mind if attempting to identify Sustainability Index performance is evaluating the company’s bottom line and not on just one or two particular segments.
Employee Stock
A share is a company’s income that will be recognized in income statement accounts on a quarterly basis. Each year a company may obtain a share from a corporation, regardless of the organization. Certain corporate entities are considered “employees and employees of the Company in which their total assets meet the performance standards prescribed by the appropriate shareholder plan,” and typically hold
