Walt Disney Company (DIS) has reported an 11.43 percent rise in profit for the quarter ended Apr. 01, 2017. The company has earned $2,388 million, or $1.50 a share in the quarter, compared with $2,143 million, or $1.30 a share for the same period last year.
Revenue during the quarter went up marginally by 2.83 percent to $13,336 million from $12,969 million in the previous year period. Gross margin for the quarter expanded 67 basis points over the previous year period to 47.74 percent. Total expenses were 71.88 percent of quarterly revenues, down from 74.07 percent for the same period last year. This has led to an improvement of 219 basis points in operating margin to 28.12 percent.
Operating income for the quarter was $3,750 million, compared with $3,363 million in the previous year period.
"Disney delivered another quarter of double-digit EPS growth, driven by the strong performance of our Studio and Parks and Resorts," said Robert A. Iger, chairman and chief executive officer, The Walt Disney Company. "Our continued strong performance is a direct result of our proven strategic focus on great branded content, innovative technology and global growth. We're pleased with our results in Q2 and remain confident in our ability to continue to deliver significant shareholder value over the long term."
Operating cash flow declines
Walt Disney Company has generated cash of $4,698 million from operating activities during the first half, down 21.50 percent or $1,287 million, when compared with the last year period. The company has spent $2,390 million cash to meet investing activities during the first six months as against cash outgo of $3,038 million in the last year period.
The company has spent $3,049 million cash to carry out financing activities during the first six months as against cash outgo of $2,204 million in the last year period.
Cash and cash equivalents stood at $3,800 million as on Apr. 01, 2017, down 24.23 percent or $1,215 million from $5,015 million on Apr. 02, 2016.
Working capital remains negative
Working capital of Walt Disney Company was negative $1,095 million on Apr. 01, 2017 compared with negative $74 million on Apr. 02, 2016. Current ratio was at 0.94 as on Apr. 01, 2017, down from 1 on Apr. 02, 2016.
Days sales outstanding were almost stable at 67 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 9 days for the quarter compared with 18 days for the previous year period.
Debt moves up marginally
Walt Disney Company has witnessed an increase in total debt over the last one year. It stood at $21,653 million as on Apr. 01, 2017, up 2.51 percent or $531 million from $21,122 million on Apr. 02, 2016. Total debt was 23.59 percent of total assets as on Apr. 01, 2017, compared with 23.40 percent on Apr. 02, 2016. Debt to equity ratio was at 0.46 as on Apr. 01, 2017, up from 0.44 as on Apr. 02, 2016.
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