I have to do these ratios for 2016 Annual Walt Disney\'s Company Financial Year.
ID: 2785351 • Letter: I
Question
I have to do these ratios for 2016 Annual Walt Disney's Company Financial Year. Could someone please tell me if they are correct? There are 12 in all.
Walt Disney’s 2016 Ratios
Walt Disney Co., Profitability Ratios
Return on Equity (ROE) 9,391,000 (net income) / 43,265,000 (equity) = 21.71%
Return on Assets (ROA) 9,391,000 (net income) / 92,033,000 (total assets) = 10.20%
Net Profit Margin 9,391,000 (net income) / 55,632,000 (sales) = 16.88%
Liquidity Ratios
Current Ratio 16,966,000 (current assets) / 16,842,000 (current liabilities) = 1.01
Quick Ratio 4,610,000 (cash & cash equivalents) + 9,065,000 (receivables) / 16,842,000 (current liabilities) = 0.81
Activity Ratios
Accounts Receivables Turnover 55,632,000 (sales) / 9,065,000 (receivables) = 6.14
Total Asset Turnover 55,632,000 (sales) / 92,033,000 (total assets) = .60
Financing Ratios
Debt Ratio 44,710,000 (total liabilities) / 92,033,000 (total assets) = .49
Debt – Equity Ratio 44,710,000 (total liabilities) / 43,265,000 (equity) = 1.03
Market Ratios
Earnings per Share (EPS) 9,391,000 (income available) / 1,591,460,982
(shares outstanding) = 5.90
Price Earnings 98.26 (current share price) / 5.90 (EPS) = 16.65
Market Book 98.26 (share price) / 27.19 (Book Value per Share) = 3.61
Explanation / Answer
Yes all following ratios are correct. Walt Disney’s 2016 Ratios Walt Disney Co., Profitability Ratios Return on Equity (ROE) 9,391,000 (net income) / 43,265,000 (equity) = 21.71% Return on Assets (ROA) 9,391,000 (net income) / 92,033,000 (total assets) = 10.20% Net Profit Margin 9,391,000 (net income) / 55,632,000 (sales) = 16.88% Liquidity Ratios Current Ratio 16,966,000 (current assets) / 16,842,000 (current liabilities) = 1.01 Quick Ratio 4,610,000 (cash & cash equivalents) + 9,065,000 (receivables) / 16,842,000 (current liabilities) = 0.81 Activity Ratios Accounts Receivables Turnover 55,632,000 (sales) / 9,065,000 (receivables) = 6.14 Total Asset Turnover 55,632,000 (sales) / 92,033,000 (total assets) = .60 Financing Ratios Debt Ratio 44,710,000 (total liabilities) / 92,033,000 (total assets) = .49 Debt – Equity Ratio 44,710,000 (total liabilities) / 43,265,000 (equity) = 1.03 Market Ratios Earnings per Share (EPS) 9,391,000 (income available) / 1,591,460,982 (shares outstanding) = 5.90 Price Earnings 98.26 (current share price) / 5.90 (EPS) = 16.65 Market Book 98.26 (share price) / 27.19 (Book Value per Share) = 3.61