Walt Disney: Segment revenue analysis
The Walt Disney Company is a leading worldwide entertainment company. Disney operates five business segments. These segments and some of their larger businesses are:
Media Networks: ABC Network, ESPN, Disney Channel, and A&E
Parks and Resorts: Walt Disney World Resort, Disneyland, and International Disney Resorts
Studio Entertainment: Walt Disney Pictures, Pixar, Marvel, and Lucasfilm
Consumer Products: licensing of Disney characters, publishing, and retail stores
Interactive: video games
Recent comparative revenues for the five segments are as follows (in millions):
Walt Disney: Segment revenue analysis
The Walt Disney Company is a leading worldwide entertainment company. Disney operates five business segments. These segments and some of their larger businesses are:
Media Networks: ABC Network, ESPN, Disney Channel, and A&E
Parks and Resorts: Walt Disney World Resort, Disneyland, and International Disney Resorts
Studio Entertainment: Walt Disney Pictures, Pixar, Marvel, and Lucasfilm
Consumer Products: licensing of Disney characters, publishing, and retail stores
Interactive: video games
Recent comparative revenues for the five segments are as follows (in millions):
Year 3 |
Year 1 |
|||
Media Networks |
$21,152 |
$19,436 |
||
Parks and Resorts |
15,099 |
12,920 |
||
Studio Entertainment |
7,278 |
5,825 |
||
Consumer Products |
3,985 |
3,252 |
||
Interactive |
1,299 |
845 |
||
Total |
$48,813 |
$42,278 |
c. Prepare a horizontal analysis of the segment sales between Year 1 and Year 3. (Round percentages to nearest whole percent.)
Segment |
Year 3 |
Year 1 |
Amount Change |
% Change |
|||||
Media Networks |
$21,152 |
$19,436 |
$ |
% |
|||||
Parks and Resorts |
15,099 |
12,920 |
% |
||||||
Studio Entertainment |
7,278 |
5,825 |
% |
||||||
Consumer Products |
3,985 |
3,252 |
% |
||||||
Interactive |
1,299 |
845 |
% |
||||||
Total |
$48,813 |
$42,278 |
$ |
% |
Walt Disney horizontal analysis of the 5 segment sales between Year 1 and Year 3 | ||||||
Segment | Media Networks | Parks & Resorts | Studio Entertainment | Consumer Products | Interactive | Total |
Year 3 (A) | $21,152.00 | $15,099.00 | $7,278.00 | $3,985.00 | $1,299.00 | $48,813.00 |
Year 1 (B) | $19,436.00 | $12,920.00 | $5,825.00 | $3,252.00 | $845.00 | $42,278.00 |
Amount Change (A-B) | $1,716.00 | $2,179.00 | $1,453.00 | $733.00 | $454.00 | |
% Change[()] | 109% | 117% | 125% | 123% | 154% | |
Note- Percentages are rounded
off to nearest whole percent![]() |
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