DreamWorks Animation SKG, Inc.
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DreamWorks Animation SKG, Inc. Financial Snapshot
Operating Performance
Fast Facts
Campanile Building, Glendale, 91201,United The company reported revenue of US$784.79 million
Headquarters Address
States of America during the fiscal year 2010 (2010). The company's
revenue grew at a CAGR of 18.74% during 2006–
Telephone + 1 818 6955000
2010, with an annual growth of 8.22% over 2009. In
2010, the company recorded an operating margin of -
Fax + 1 818 6959944 15.57%, as against 20.90% in 2009.
Website www.dreamworksanimation.com
Revenue and Margins
Ticker Symbol, Stock Exchange DWA, NASDAQ
Number of Employees 2,100
Fiscal Year End December
Revenue (in US$ million) 784.79
SWOT Analysis
Strengths Weaknesses Return on Equity
Dominant market position Dependence on third party The company recorded a return on equity (ROE) of
13.55% for 2010, as compared to its peers, The Walt
Disney Company (Ticker: DIS), Viacom Inc. (Ticker:
Improved top-line performance Seasonality of the business VIA.B) and Lions Gate Entertainment Corp. (Ticker:
LGF), which recorded ROEs of 10.56%, 9.20% and -
Strategic alliances Unified product portfolio 36.12% respectively. The company reported a net
profit margin of -15.57% in 2010.
Opportunities Threats
Return on Equity
Development in stereoscopic 3D Animation more uncertain than live
technology products
Growth in entertainment and media
Intellectual property risks
industry
Strategic agreements Preference for lesser children
Financial Leverage
The company reported a debt to equity ratio of 0.00 in
2010, as compared to its peers, The Walt Disney
Company, Viacom Inc. and Lions Gate Entertainment
Corp., which recorded debt to equity ratios of 0.34,
0.73 and 8.05 respectively. In 2010, the company
recorded a debt to capital ratio of 0.00, as compared
to its peers, The Walt Disney Company, Viacom Inc.
and Lions Gate Entertainment Corp., which recorded
debt to capital ratios of 0.22, 0.36 and 0.28
respectively.
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DreamWorks Animation SKG, Inc. - SWOT Profile Page 1
DreamWorks Animation SKG, Inc.
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TABLE OF CONTENTS
1 Business Analysis ................................................................................................................................... 5
1.1 Company Overview ................................................................................................................................................5
1.2 Business Description ..............................................................................................................................................5
1.3 Major Products and Services .................................................................................................................................6
2 Analysis of Key Performance Indicators ............................................................................................... 7
2.1 Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
2.2 Key Financial Performance Indicators .................................................................................................................10
2.2.1 Revenue and Operating Profit .........................................................................................................................10
2.2.2 Asset, Liabilities and Capex .............................................................................................................................11
2.3 Competitive Benchmarking ..................................................................................................................................12
2.3.1 Market Capitalization .......................................................................................................................................12
2.3.2 Efficiency ..........................................................................................................................................................13
2.3.3 Capital Expenditure ..........................................................................................................................................14
2.3.4 Turnover – Inventory and Asset .......................................................................................................................15
3 Mergers & Acquisitions and Partnerships ........................................................................................... 16
3.1 M&A and Partnerships Strategy ...........................................................................................................................16
4 Recent Developments ........................................................................................................................... 18
5 SWOT Analysis ...................................................................................................................................... 19
5.1 SWOT Analysis - Overview ..................................................................................................................................19
5.2 Strengths ..............................................................................................................................................................19
5.3 Weaknesses .........................................................................................................................................................19
5.4 Opportunities ........................................................................................................................................................20
5.5 Threats .................................................................................................................................................................20
6 DreamWorks Animation SKG, Inc. - Company Statement ......................................