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Walt Disney Cash Flow Analysis
I want a specific details about the cash flow statement of Walt Disney company and showing where the result get from by showing the work and balance sheet schedule the work should include information about investing, operating and financing activities in details with a feed back. Also the research should include an answer for 1. Where did the cash come from, 2. What was the cash used for and 3. What was the change in cash balance? All in detailed answer and specific about Disney.
Cash flow analysis helps to elucidate on how a company obtained and used its financial resources within a given period. Cash flows are useful component of the company as they assist to show how the company performs at a certain time. In this outline, the ensuing segments cover the cash flow analysis of the Walt Disney Company. The cash flow associated with operating, investing, and financing activities is analysed for the years 2011 through 2014.
Cash Flow from Operating Activities
Walt Disney obtained its cash from revenue generated from its operating activities (Assuming that customers paid for their purchases in cash). The company generated revenue of $ 40893 million in the year 2011, which increased to $ 48813 million in the year 2014 representing a 6.1% revenue growth (Walter Disney, 2014: 2011) The company inventory reduced between the years 2011 through 2013 (from US $ 2269 million to $ US 2121 million) before increasing in 2014 (US $ 2635). This shows that part of the cash for the year 2011 through 2013 came from the surplus of inventory sale over purchase. In the year 2014, the company increased its level of deferred tax (from US $ 485 to US $ 497 million), which increased its retained cash. Walt Disney amount of payables increased from the year 2011 to year 2014 (4546 to 5371) (Walter Disney, 2014: 2011). This shows that the company was purchasing more on credit, and thus increasing its cash in hand.
On the other hand, in the year 2014, the company used some of its cash to acquire more inventories. This is indicated by the increase in inventory from $ 2121 million in 2013 to $ 2635 in 2014. The company account receivable increased over the period showing that it was selling more on credit and thus the customers retained much of its cash. The Company’s prepaid expenses increased between the year 2011 and 2012 indicating that much of its cash was used to pay for next periods expense (Walter Disney, 2014: 2011).In the year 2014, the company lost $ 143 million from the currency exchange.
Cash Flow from Investing Activities
In the year 2012, Walt Disney sold its marketable and equity securities worth $ 490 million. This shows that the company increased its cash by this amount. It investment cash also came from interest on investment. The company obtained $ 116, $ 103, $ 111, and $ 112 interest from its investments for the years 2011 through 2014 (Walter Disney, 2014: 2011).
The net property and equipment of the company increased from US $ 19695 million in 2011 to US $ 23 332 in the year 2014. This shows that the company used its cash to buy for the property plant and equipment through the period. On the same note, the company acquired more assets as represented by increment in total assets from $ 72124 in the year 2011 to $ 84186 in the year 2014. The increment in assets represents a total cash outflow of the equivalent amount. The company invested $ 5 million, $ 479, and $ 395 million in the years 2011, 2013 and 2014.