Problem:
Obtain industry averages for commonly used ratios in the 2013 and 2014 period. Write a 350 word report comparing Disney ratios to the industry averages. Discuss whether Disney entertainment company is profitability, efficiency, liquidity, and solvency are better than, or worse than, two of its peers. Place the industry averages, Disney ratios, and peer ratios on an excel spreadsheet.
Identify and evaluate trends in all of the below ratios for the industry that Disney entertainment company is a part of. Compare Disney ratio results to industry averages.
Obtain industry averages for commonly used ratios in the current period. Industry average information is reported by industry title or SIC code.
Look up the following industry-average ratios:
1. Current ratio
2. Debt ratio
3. Gross profit margin
4. Times interest earned
5. Accounts receivable turnover
6. Inventory turnover
7. Return on Sales
8. Asset Turnover
9. Return on Assets
10. Financial Leverage
11. Return on Equity
Note that some industry averages may not apply to Disney.