Walt Disney Company (DIS) has reported a 13.92 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $2,479 million, or $1.55 a share in the quarter, compared with $2,880 million, or $1.73 a share for the same period last year.
Revenue during the quarter dropped 3.02 percent to $14,784 million from $15,244 million in the previous year period. Gross margin for the quarter contracted 29 basis points over the previous year period to 43.14 percent. Total expenses were 74.93 percent of quarterly revenues, up from 73.30 percent for the same period last year. That has resulted in a contraction of 163 basis points in operating margin to 25.07 percent.
Operating income for the quarter was $3,706 million, compared with $4,070 million in the previous year period.
"We're very pleased with our financial performance in the first quarter. Our Parks and Resorts delivered excellent results and, coming off a record year, our Studio had three global hits including our first billion-dollar film of fiscal 2017, Rogue One: A Star Wars Story," said Robert A. Iger, chairman and chief executive officer, The Walt Disney Company. "With our proven strategy and unparalleled collection of brands and franchises, we are extremely confident in our ability to continue to drive significant value over the long term."
Operating cash flow drops significantly
Walt Disney Company has generated cash of $1,260 million from operating activities during the quarter, down 48.70 percent or $ 1,196 million, when compared with the last year period.
The company has spent $1,035 million cash to meet investing activities during the quarter as against cash outgo of $1,798 million in the last year period.
The company has spent $987 million cash to carry out financing activities during the quarter as against cash outgo of $562 million in the last year period.
Cash and cash equivalents stood at $3,736 million as on Dec. 31, 2016, down 13.14 percent or $565 million from $4,301 million on Jan. 02, 2016.
Working capital remains negative
Working capital of Walt Disney Company was negative $2,652 million on Dec. 31, 2016 compared with negative $1,028 million on Jan. 02, 2016. Current ratio was at 0.86 as on Dec. 31, 2016, down from 0.95 on Jan. 02, 2016.
Days sales outstanding were almost stable at 55 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 7 days for the quarter compared with 16 days for the previous year period.
Debt moves up
Walt Disney Company has witnessed an increase in total debt over the last one year. It stood at $20,490 million as on Dec. 31, 2016, up 8.33 percent or $1,575 million from $18,915 million on Jan. 02, 2016. Total debt was 22.37 percent of total assets as on Dec. 31, 2016, compared with 20.99 percent on Jan. 02, 2016. Debt to equity ratio was at 0.43 as on Dec. 31, 2016, up from 0.39 as on Jan. 02, 2016.
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