Time Warner Inc (TWX), The Walt Disney Company (DIS) & More: This Will Thank You

Assessing how effectively each firm utilizes its assets reveals that Disney, even with large theme parks and other fixed assets, is a good investment.

Next, we will refer to each of the firms’ asset management ratios to see how they are uniquely positioned.

For example, News Corp (NASDAQ:NWS) is unable to generate as much sales as its competitors given its fixed assets. A key reason is because in addition to its internet, television, and entertainment divisions, it owns a large number of magazines and newspapers which have lower margins. However, as seen by the total asset turnover, News Corp (NASDAQ:NWS)’s other business units are able to generate enough revenue to be comparable to the industry.

On the other hand, Comcast Corporation (NASDAQ:CMCSA)’s enormous number of assets result in a lower turnover. However, Comcast Corporation (NASDAQ:CMCSA) and Viacom, Inc. (NASDAQ:VIAB) are positioned to reap benefits (and therefore more income and higher turnovers) from recent partnership negotiations with content-sharing website Twitter.

The deal enables Twitter users to stream videos from NBC Universal, a subsidiary of Comcast Corporation (NASDAQ:CMCSA), and Viacom, Inc. (NASDAQ:VIAB). The advertising revenue generated from the deal will be split by both firms, and an agreement may be determined by late May.

DIS Total Assets data by YCharts

Part two of the analysis will look at profitability and market value ratios of the aforementioned firms. But, as seen above, if you take the time to assess an industry that “perfect day” and “priceless vacation” may in fact become reality.

The article Entertain Yourself: Your Investment Will Thank You (Part 1) originally appeared on Fool.com and is written by Brendan Marasco.

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