Question

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

a. Prepare a vertical analysis of the segment sales to total sales for Year 1 and Year 3. (Round percentages to nearest whole percent.) Note: Due to rounding, your totals may exceed 100 percent.

Segment		Year 3		Year 3 Percentage		Year 1		Year 1 Percentage
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		%

Answer 1

a.vertical analysis of the segment sales.

segment	year 3	year 3 percentage	year 1	year 1 percentage
media networks	21,152	43%	19,436	46%
parks and resorts	15,099	31%	12,920	31%
studio entertainment	7,278	15%	5,825	14%
consumer products	3,985	8%	3,252	8%
interactive	1,299	3%	845	2%
total	48,813	100%	42,278	100%

working:

	year 3	year1
media networks	(21,152/48,813)*100=>43%	(19,436/42,278)*100=>46%
parks and resorts	(15,099/48,813)*100=>31%	(12,920/42,278)*100=>31%
studio entertainment	(7,278/48,813)*100=>15%	(5,825/42,278)*100=>14%
consumer products	(3,985/48,813)*100=>8%	(3,252/48,813)*100=>7%
interactive	(1299/48813)=>3%	(845/42278)*100=>2%
total	(48813/48813)*100=>100%	(42278/42278)*100=>100%