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In: Accounting

Using Walt Disney Company, find the industry ratios for the following: Current Ratio Debt to Equity...

Using Walt Disney Company, find the industry ratios for the following:

  • Current Ratio
  • Debt to Equity Ratio
  • Return on Assets
  • Return on Equity
  • Inventory Turnover
  • Asset Turnover

Solutions

Expert Solution

Note: The question didn't specify the Year for which ratios to be calculated. So I'm calculating these ratios for September 29, 2018 financial year.
Current ratio= Current assets / Current liability
$16,825 / $17,860             0.94
Debt to equity ratio Total liability / Total shareholders' equity
(9479+3790+17084) / 52832 (Note: following debts considered in total liability : Account payable, Current portion of borrowings and Borrowings)
$30,353 / $52,832             0.57
Return on assets Net income / Average total assets
$13,066 / (98598+95789)/2
$13,066 / $97,194 13.44%
Return on equity Net income / Average shareholders' equity
$13,066 / ($45,004+$52,832)/2
$13,066 / $48,918 26.71%
Inventory Turnover Cost of goods sold / Average inventory
(27528+5198) / (1373+1392)/2
$32,726 / $1,383          23.67
Asset turnover Total sales / Average assets
59434 / (98,598+95,789)/2
59434 / 97193.5             0.61

ekkarill92 answered 2 years ago
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