Reference no: EM132717783
Problem - The Walt Disney Company (DIS) has four business segments, described as follows:
- Media Networks: Television and radio.
- Parks and Resorts: Resorts, including Disneyland.
- Studio Entertainment: Motion pictures, musical recordings, and stage plays.
- Consumer Products & Interactive Media: Character merchandising, Disney stores, books, and games.
Disney recently reported segment operating income, revenue, and invested assets (in millions) as follows:
|
Operating Income
|
Revenue
|
Invested Assets
|
Media Networks
|
$7,755
|
$23,689
|
$32,706
|
Parks and Resorts
|
3,298
|
16,974
|
28,275
|
Studio Entertainment
|
2,703
|
9,441
|
15,359
|
Consumer Products & Interactive Media
|
1,965
|
5,528
|
9,332
|
Required -
a. Use the DuPont formula to determine the return on investment for the four Disney segments. Round percentages to one decimal place and investment turnover to two decimal places.
b. How do the four segments differ in their profit margin, investment turnover, and return on investment?