Analyse financière et boursière du groupe coté Walt Disney Company sur la période de 2014 à 2016 : Case study

Finance ComptabilitéThe Walt Disney company is present in 4 major markets which are: the media network market, the parks and resorts market, the studio entertainment market and the derivative products market. The company is a global leader in the entertainment market. The group can easily adapt to each market thanks to its subsidiaries. Despite a large number of competitors and the fact that Disney has to face to many challenges, its benefice and growth margin and more generally its good financial health will enable the company to prosper and to strengthen its position on the emerging markets in the future, in order to depend less on US and Canada markets for its income. The sales of Walt Disney Company increasing over the last three years are explained by the healthy state of the entertainment and media sector. The Operating Margin is also increasing by 9,18% from 2014 to 2016. However, the increase is less important in 2016: 2,38% from 2015 to 2016. Nevertheless, Walt Disney Company is highly profitable for its shareholders. The Net Margin of Walt Disney Company is high and increasing over the period, indicating high safety. Indeed, the net margin reached 17,6% in 2016, an increase of 7,3% in comparison with 2014. Disney Company invested more in strategic investments. Its asset turnover increased over the last 3 years (from 77% to 83%). His ability to generate sales from the capital employed has improved, like its working capital. In term of inventories, the company inventories in days of sales decreased; the company does not carry that long its inventories before they are sold (0 days during the last year, and 12 days the first one), a short period which allows it to quickly take back the cash while the receivables slightly wobble over these 3 years, go up and down, but stay around 50, 60 pays. However, the debtor’s days have a reasonable level, generally the company collected its money in 60 days, which is correct, and its payables increased; the company needs more time to pay its suppliers so Disney has to be careful. The Cash Flow of Walt Disney Company is positive and increased since 2014, about 4610 millions of dollars in 2016 with a positive operating cash flow. Walt Disney decided to increase investments with more than 13 billion spent from 2014 to 2016. Indeed, Disney increased its spending on acquisitions and on its theme parks. Dividends are unstable and are multiplied by 3 in a year, and then divided by a third. More than 6800 millions of dollars were spent in dividends from 2014 to 2016. Dividends decreased in 2016 because of the increase in investments. Walt Disney Company financed with more debt. Indeed, the net debt ratio increased from 31% to 41% over the last three years, that means Walt Disney Company finances more and more its investments by debts and less with equity. The company managed its current liabilities with a current ratio near of 1. WDC's ROCE after tax and ROE increased over the period studied. These indicators allow us to affirm that the group has increased its profitability and its efficiency of capital employed. Moreover, its ability to generate profits from its equity have increased over the period (without taking into account other sources of financing). In the literature review, we found that the group borrows in the countries where its subsidiaries are located in order to finance its projects. WDC managed its net debt well during the 3 periods. Its (Net debt/EBITDA) ratio remained stable over these 3 years despite a sharp increase in its debt in the last year. Disney company has a good financial situation, created value, and its margin increased over the last years studied. Its ability to generate profits from its equity also increased. The Walt Disney Company is not only a strong and famous brand; it is also a profitable company with a good price to earnings and a good dividend yield. As an investor the group is a good deal