OPERATING, FINANCIAL, & COMBINED LEVERAGE / BLOOMBERG BUSINESSWEEK CASE STUDY 2

Case Questions
①Using the data provided, calculate and interpret the degree of operating leverage (DOL)
for Disney and its two amusement park peers.
Summary Financial Data for Disney and its Peers
All Data in Millions of US Dollars
Disney Six Flags Cedar Fair

2018 2017 2018 2017 2018 2017

Sales 59,434 55,137 1,464 1,359 1,349 1,322

EBIT 14,837 13,873 523 465 291 295

Operating Leverage Calculations

Disney Six Flags Cedar Fair

Sales

EBIT

DOL

②Using the data provided, calculate and interpret the degree of financial leverage (DFL) for
Disney and its two amusement park peers.
Summary Financial Data for Disney and its Peers
All Data in Millions of US Dollars except EPS
Disney Six Flags Cedar Fair

2018 2017 2018 2017 2018 2017

EBIT 14,837 13,873 523 465 291 295

EPS 8.36 5.69 3.23 3.09 2.23 3.79

Financial Leverage Calculations

Disney Six Flags Cedar Fair

Sales

EBIT

DFL

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OPERATING, FINANCIAL, & COMBINED LEVERAGE / BLOOMBERG BUSINESSWEEK CASE STUDY 3

③Using the data provided, calculate and interpret the degree of combined leverage (DCL)
for Disney and its two amusement park peers.

Summary Financial Data for Disney and its Peers

All Data in Millions of US Dollars
Disney Six Flags Cedar Fair

2018 2017 2018 2017 2018 2017

EPS 8.36 5.69 3.23 3.09 2.23 3.79

Sales 59,434 55,137 1,464 1,359 1,349 1,322

Combined Leverage Calculations

Disney Six Flags Cedar Fair

Sales

EBIT

DCL

④Use investing.com to download the necessary financial data to compute, compare, and
interpret the operating, financial, and combined leverage of Disney and its media peers.
Provide the completed spreadsheet and a few bullets highlighting your findings.

Good Luck!

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