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Walt Disney Co. The Economy Research Paper

Its businesses are strong, financials good and the company has a stable model. Disney could be involved in M&a activity, but as the largest company in the industry and having financial strength there is low likelihood that Disney will be purchased. Memo. Founded in 1923, the Walt Disney Company is a diversified entertainment company. Its businesses are mature, enjoying mainly organic growth. Revenues are stable, even through the economic downturn, although profits have slumped slightly. Disney is the industry leader and is the largest firm in the industry by all measures. It competes mainly in theme parks, television, movies and music.

Disney has strong financial ratios, marked by a low debt level, good liquidity and healthy margins. The company's returns are better than the industry average. Because of its solid financial position, Disney has few major threats -- it is differentiated even from its major competitors. There remain good growth opportunities for Disney, in particular with geographic expansion. The Asia market remains a source of growth opportunity.

The economic environment is improving. The...

As a result, Disney should be poised to experience solid growth in the coming few years. The company's size and strength all but preclude it from being a takeover target, but Disney could do some acquiring of its own.
Price History: Disney vs. Dow, 3 years courtesy MSN Moneycentral

Works Cited:

Federal Reserve Bank of New York. (2010). Federal funds data. Federal Reserve Bank of New York. Retrieved April 30, 2010 from http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm

BEA. (2010). Gross domestic product: Fourth quarter 2009. Bureau of Economic Analysis. Retrieved April 30, 2010 from http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

Hernandez, J. (2010). U.S. inflation report gives Fed breathing room. New York Times. Retrieved April 30, 2010 from http://www.nytimes.com/2010/02/20/business/economy/20econ.html?adxnnl=1&adxnnlx=1272618054-ellf4Oepfl12/+t71Oy+7g

MSN Moneycentral: Walt Disney Co. (2010). Retrieved April 30, 2010 from http://moneycentral.msn.com/companyreport?Symbol=DIS

Sources used in this document:
Works Cited:

Federal Reserve Bank of New York. (2010). Federal funds data. Federal Reserve Bank of New York. Retrieved April 30, 2010 from http://www.newyorkfed.org/markets/omo/dmm/fedfundsdata.cfm

BEA. (2010). Gross domestic product: Fourth quarter 2009. Bureau of Economic Analysis. Retrieved April 30, 2010 from http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm

Hernandez, J. (2010). U.S. inflation report gives Fed breathing room. New York Times. Retrieved April 30, 2010 from http://www.nytimes.com/2010/02/20/business/economy/20econ.html?adxnnl=1&adxnnlx=1272618054-ellf4Oepfl12/+t71Oy+7g

MSN Moneycentral: Walt Disney Co. (2010). Retrieved April 30, 2010 from http://moneycentral.msn.com/companyreport?Symbol=DIS
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