Slow burn through all lows4/2/2023 ![]() ![]() Revenue of $14.8 billion for that segment wasn't a whole lot higher from the $14.6 billion the company reported for that part of its business in the first quarter a year ago. ![]() But the one number that stuck out from that was the growth rate in its media and entertainment distribution segment: 1%. But this is another number investors should watch in future quarters.ġ%: The growth of its media and entertainment segmentĭisney's revenue totaled $23.5 billion last quarter, which was a modest 8% increase year over year. The positive is that as of the end of the period, Disney had cash and cash equivalents of $8.5 billion, so it's not like the company will run out of money anytime soon.ĭisney has recently announced that it will slash 7,000 jobs and $5.5 billion in costs, and that should ultimately improve cash flow. The company has been spending more on content, and losses in its media business haven't helped the situation. In the 2023 first quarter, Disney's cash burn totaled $974 million, which was more than four times the $209 million it used up in the prior-year period. If a business isn't generating sufficient cash, it might need to raise money in the future, diluting its shareholders in the process. When a company is burning through money from its day-to-day operating activities, that is another bad sign, since it means its operations aren't sustainable in their current state. $974 million: The cash used in day-to-day operations in Q1 ![]()
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