The Walt Disney’s quick ratio was calculated to be at 1.081 on September 27, 2014 and 1.154 at September 28, 2013 and Dave & Buster’s were calculated to be 1.057 as of February 1, 2015 and .799 as of February 2, 2014. This ratio measures how well the company can meet its short-term financial liabilities. Therefore, as stated in these calculations, Disney has $1.081 of liquid assets available to cover each $1 of current liabilities and Dave & Buster’s has $1.057 available to cover $1 of current liabilities. Disney’s cash provided by operating activities in its most recent Form 10-Q has increased by 27% to $2.4 billion for the current quarter compared to $1.9 billion in the prior year quarter due to higher operating cash flows. The net cash provided by operating activities at Dave & Busters was $51,705 for the thirteen weeks ended May 3, 2015 compared to cash provided by operating activities of $52,754 for the thirteen weeks ended May 4, 2014. Both companies are striving to increase their profitability and its cash flows in order to continue to become successful …show more content…
This is a way of evaluating a company’s profitability which excludes items that make comparisons across companies difficult and which are viewed as not the central to the company’s core operations. EBITDA is used when evaluating a company’s ability to earn a profit, and is often used in stock analysis. The EBITDA at The Walt Disney Company was $13,828 million at September 27, 2014 and $11,642 at September 28, 2013 as calculated on exhibit 1. The EV/EBITDA ratio was calculated at 10.58 with its industry average at 10.63. This ratio has increased from 2013 to 2014 to 2015. The EBITDA at Dave Busters is presented using the adjusted EBITDA. The EBITDA for Dave & Busters were $144,729 thousand on fiscal year ending February 1, 2015 and $117,376 on February 2, 2014 as calculated on exhibit 2. The adjusted EBITDA was $165,127 on February 1, 2015 and $134,790 as of February 2, 2014. Dave & Buster’s feels as though it provides useful information to its investors regarding their operating performance and their capacity to incur and service debt and fund capital expenditures. In using this method, it provides a basis for comparison for their business operations between current, past and future periods by excluding items that this company believes are indicative of their core operating