This Mini Case is available in MyFinanceLab.
Below are the financial statements for two firms, Time Warner and Walt Disney, for 2012 and 2013.
a. How did Time Warnerâ€™s profit margins change from 2012 to 2013? To what would you attribute the differences? Answer the same question for Disney.
b. Compare the profit margins between Time Warner and Disney. How are they different? How would you explain these differences?
c. What differences do you notice in the common-sized balance sheets that might indicate that one of the firms is doing better than the other?
d. Conduct an Internet search on the two firms to gain additional insights as to causes of the financial differences between the firms in 2012 and continuing into 2013.
e. How are the two companies doing financially today?