Walt Disney Financial Ratios

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For many people visiting any of the Walt Disney theme parks is like a dream, specifically for children because it makes them feel like they are experiencing a fairytale. Personally, I have had the opportunity to visit the theme park at least three times, but every time I go I feel like it is the first time. Everyone is aware how financially successful The Walt Disney Company has become, but in reality few people are familiar with their finances. The evaluations of this financial analysis will assess their financial situation and compare to one of their most adverse competitors, Twenty-First Century Fox Inc. The Walt Disney Company The Walt Disney Company is among the world’s leader for family entertainment. They current…show more content…
It is one of the five financial ratios. It helps determine if Walt Disney has the capacity to pay its short-term debt obligations. Among the most popular liquidity ratios is the current ratio; it helps determine whether or not the firm’s assets are ready to cover its liabilities. It is important to note all the amounts are expressed in millions of dollars. As of this year, Disney has total current assets of $15,176 while the current liabilities are $13,292. As a consequence, their current ratio is 1.14; while their competitor, Twenty-First Century Fox Inc has a current ratio of 1.74. For 2013, the current ratio was 1.21. Based on the results, the current ratio is a slight lower when compared to last year. The higher the current ratio, the better because it means they can meet their financial obligations like they are supposed to. At the same time, the quick ratio is beneficial because it takes it determines the dollar amount of liquid assets that will cover current liabilities. It takes into consideration cash, marketable securities, accounts receivable and compares it to current liabilities. For 2014, the total quick assets equal $11,243 divided by current liabilities of $13,292, then the quick ratio results in 0.85. Once again, the quick ratio for Twenty-First Century Fox Inc was higher at 1.34. On the other hand, for the previous year the quick ratio was
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