The Role of Capital Structure in Walt Disney Company’s Long-Term Success

isabel silva

Co-Presenters: Individual Presentation

College: College of Business and Public Management

Major: BS.FINANCE

Faculty Research Mentor: Alam, Ahmed  

Abstract:

This project undertakes an analysis of the impact of the capital structure of the company on the long term success of The Walt Disney Company. Capital structure, as defined, is the mix of debt and equity financing used by companies to fund their operations, investments, and growth. The aim of this project is to examine the capital structure of Disney and its implications for the success of the company. The major activities of the company, including acquisitions, investments, and the construction of new theme parks, are examined. The financial statements of the company are also examined, including the ratios, to understand the extent of borrowing and the level of shareholder funds used by the company. The findings of the project indicate that Disney has an optimal capital structure, which enables the company to undertake large projects and maintain financial flexibility in the industry. This is particularly important for an industry such as entertainment, which is highly affected by economic conditions and changing consumer behavior. Overall, the project shows that the capital structure of the company is an important aspect of the long term success of Disney, which has enabled the company to maintain its position as a leader in the industry.