Walt Disney Co. (NYSE:DIS)

Net Operating Profit After Taxes (NOPAT)

The net operating profit after taxes shows a significant positive trend over the analyzed periods. Initially, there was a negative value of -2176 million USD, followed by a recovery into positive territory with 2215 million USD. The NOPAT further increased to a peak of 6699 million USD, then experienced a decline to 3406 million USD before rising again to 6260 million USD and ultimately reaching the highest value of 12192 million USD. This overall upward trend suggests improving operational efficiency and profitability over time, despite some fluctuations.

Cost of Capital

The cost of capital remains relatively stable but shows a gradual increase throughout the years. Beginning at 16.42%, it slightly fluctuates but generally trends upward, reaching 16.99% in the latest period. This incremental rise indicates a marginal increase in the company's required return by investors, which could be due to changes in the company’s risk profile or broader market conditions.

Invested Capital

Invested capital exhibits a slight declining pattern over the periods analyzed. Starting at 174,594 million USD, the invested capital remains relatively constant for the first few years with minor fluctuations but begins to decline from the fourth period onwards, dropping to 165,308 million USD in the final period. This reduction might indicate divestitures, asset sales, or more efficient use of capital.

Economic Profit

Economic profit shows a consistent negative value throughout all periods but with a decreasing magnitude of loss. Starting with a considerable loss of -30,842 million USD, the losses reduce gradually to -15,899 million USD in the last period. Although the company continues to experience negative economic profit, the reduction in losses suggests incremental improvements in value creation relative to the cost of capital, aligned with the rising NOPAT and slightly decreasing invested capital.

Net Income

The net income attributable has demonstrated robust positive growth in the analyzed periods. Initially, a significant loss of -2864 million USD was recorded, followed by a turnaround to a profit of 1995 million USD in the subsequent period. Thereafter, a consistent upward trajectory is observed, culminating in a substantial net income of 12404 million USD by the latest period. This suggests a strong recovery and improving profitability.

Net Operating Profit After Taxes (NOPAT)

NOPAT follows a similar pattern to net income, with an initial negative value of -2176 million USD. A major improvement is noted in the following period, progressing to positive values and showing an overall upward trend. Despite some fluctuations, NOPAT generally increases with peaks reaching 12192 million USD in the last reported period, indicating enhanced operational efficiency and profitability after tax considerations.

Overall Trends and Insights

The data reveals a significant financial turnaround from losses to strong profits over the annual periods. Both net income and NOPAT have shown marked improvements, reflecting successful operational and financial strategies. The consistent increase, especially noticeable in the most recent years, highlights improved business performance and effective management in generating shareholder value.

The financial data reveals notable fluctuations in both income tax expense related to continuing operations and cash operating taxes over the observed periods.

Income Tax Expense (Benefit) on Income from Continuing Operations

This metric displays significant variability. It started at 699 million US dollars in 2020, sharply declined to 25 million in 2021, and then surged to 1,732 million in 2022. In the subsequent years, the value remained elevated at 1,379 million in 2023 and increased further to 1,796 million in 2024, followed by a substantial reversal to a negative figure of -1,428 million in 2025. The pronounced negative value in the final year suggests a tax benefit or credit, marking a distinct departure from previous years’ expenses.

Cash Operating Taxes

Cash operating taxes have generally increased over the years with some volatility. The amount rose from 1,305 million US dollars in 2020 to a peak of 3,100 million in 2023. Although there was a slight decline to 2,982 million in 2024, the value decreased more sharply to 1,546 million in 2025. This trend indicates a build-up of tax payments until 2023, with a marked reduction thereafter.

In summary, both income tax expense and cash operating taxes have seen considerable fluctuations, with the income tax expense showing a notable reversal into a benefit in the last recorded year and cash operating taxes peaking in 2023 before declining significantly. These trends may reflect changes in tax regulations, profitability, or tax strategies implemented in the latest periods.

Total reported debt & leases

The total reported debt and leases demonstrate a clear downward trend over the analyzed periods. Starting from approximately 62.3 billion USD, the figure consistently decreases each year, reaching around 45.4 billion USD by the latest period. This steady reduction in liabilities suggests a strategic effort towards deleveraging and improving the company’s financial stability by lowering its debt burden.

Total Disney Shareholder’s equity

Shareholders' equity shows a consistent upward trajectory throughout the timeline. Beginning at about 83.6 billion USD, it rises continuously to nearly 110 billion USD in the most recent period. This growth in equity indicates strengthening net asset values, which could result from retained earnings, profitable operations, or potentially favorable revaluation adjustments. The increasing equity base enhances the company’s capacity to finance operations through internal sources.

Invested capital

Invested capital remains relatively stable across the periods, fluctuating slightly between approximately 165.3 billion USD and 174.6 billion USD. However, a slight decline is observable in the latter part of the timeline, dropping from the peak near 174.6 billion to around 165.3 billion USD. This suggests a modest reduction in the total capital invested in the company's operations, possibly reflecting asset disposals, operational efficiencies, or capital allocation adjustments.

Economic Profit

There is a consistent negative economic profit across all the reported years, indicating that the company's returns on invested capital have not exceeded its cost of capital during this period. While economic profit showed a deterioration from -30,842 million USD in 2020 to -21,699 million USD in 2022, it rebounded slightly in 2023 but remained significantly negative. The trend reflects a gradual improvement from 2023 onward, reaching -15,899 million USD by 2025, suggesting a reduction in value loss over time.

Invested Capital

The invested capital demonstrates relative stability with minor fluctuations. Starting at 174,594 million USD in 2020, it saw a slight decrease in 2021, followed by a marginal increase in 2022 and 2023. After 2023, there is a noticeable decline through 2024 and 2025, with invested capital decreasing to 165,308 million USD by 2025. This reduction may reflect asset sales, capital efficiency measures, or strategic realignment.

Economic Spread Ratio

The economic spread ratio remains negative throughout the period, confirming that the returns on invested capital fall short of the capital cost. Although it shows improvement over time, moving from -17.67% in 2020 to -9.62% in 2025, this gradual improvement still indicates persistent challenges in generating returns over and above the cost of capital. The upward trend in the economic spread ratio aligns with the decreasing negative economic profit, highlighting a slow recovery or better operational performance.

Overall Analysis

The company experiences ongoing negative economic profit and economic spread ratios, pointing to returns below its cost of capital. However, there is a clear trend of improvement in these metrics, particularly between 2023 and 2025, which could indicate enhanced operational efficiency or more favorable market conditions. The invested capital remains relatively steady with a slight decline in later years, possibly reflecting ongoing portfolio optimization. Together, these patterns suggest that while financial performance remains under pressure, there are signs of gradual recovery and improved capital utilization over the analyzed period.

The financial data reveals several key trends over the observed periods. Adjusted revenues show consistent growth, increasing from 64,920 million US dollars in 2020 to 94,454 million US dollars in 2025. This steady upward trajectory indicates an expanding revenue base.

Despite the growth in revenues, economic profit remains negative throughout the entire timeframe. However, there is a noticeable trend of improvement, with economic losses decreasing from -30,842 million US dollars in 2020 to -15,899 million US dollars in 2025. This reduction in negative economic profit suggests enhanced operational efficiency or cost management over time.

The economic profit margin, which measures economic profit relative to revenues, also follows an improving trend. It starts at -47.51% in 2020 and improves to -16.83% in 2025. Although still negative, this narrowing margin further supports the observation that the company is making progress toward profitability on an economic basis.

Adjusted Revenues

Demonstrate a continuous upward trend, reflecting growth in the company’s core business activities.

Economic Profit

Remains in negative territory but shows a consistent reduction in losses, highlighting improved financial performance against economic costs.

Economic Profit Margin

Improves steadily, indicating that the company is becoming more efficient and gradually closing the gap between revenues and economic costs.

In summary, the company's financial performance exhibits positive momentum in revenue growth accompanied by a consistent reduction in economic losses and an improving economic profit margin, pointing to better operational and financial management over the course of the analyzed periods.