Why does Disney (DIS) carry so much goodwill on their balance sheet?

Hi!

I was recently looking over some financial statements for Disney and noticed on their balance sheet they carry a significant amount of "goodwill":

2018 2019 2020 2021 2022
31,269.0 80,293.0 77,689.0 78,071.0 77,897.0

As i understand, "goodwill" is added to the balance sheet when a merger/acquisition of 2 companies occurs. So, for example, if Disney bought My Cable Company for $100 million, and My Cable Company had assets of $90 million and liabilities totaling $15 million...making the present value of the company $75 million. This would mean Disney could record $25 million of "goodwill" on the balance sheet.

By this logic, does that mean Disney is continually shelling out cash for companies at a price higher than their current value? Presumably in hopes of increasing future revenues?

Thanks in advance!

submitted by /u/YeAncientDoggOfMalta
[link] [comments] https://www.reddit.com/r/stocks/comments/14t6mt0/why_does_disney_dis_carry_so_much_goodwill_on/
Établi 11mo | 7 juil. 2023 à 21:21:10


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