1. Margin Expansion. Companies are able to significantly improve
their profitability by increasing their margins. Called margin
expansion. In the case of Disney, look at the “Trend Analysis”
sheet. Look at their margins. Something happened between 2011 and
2012 to boost, or expand their margins. Provide data or graphs to
prove your point. Discuss it in written terms. Here is a
hint. It came from their movie business. Don’t just provide a
simplistic answer. Explaiiiiiiin it . There are a number of
sites that can provide useful like Box Office Mojo. Also, look into
some historical 10-Ks from their investor website. Gather some
useful data. Spend the time to do this right. I am looking for you
to investigate. Hint. What happened to the company’s revenue per
film? What do you think was their strategy? What role do you think
acquisitions may have played.
2. Comparisons. Disney is a unique company. There is no one
quite like them. Propose a creative way to compare Disney to its
peers. Hint. Perhaps you could use a weighted approach based upon
the percentage of their revenue or operating income that comes from
a particular business line. Write about your justification.
3. Debt. Provide reasons for why Disney’s debt level is
different from all of its peers. Hint. Look into Disney’s history a
little, Wikipedia is fine.