How effective were Disney's cost controls in 2023?

Disney's cost controls in 2023 were relatively effective as evidenced by the company's operating margin, gross margin, and net margin figures for the year. The operating margin stood at 8.75%, the gross margin at 33.41%, and the net margin at 3.81% as of December 31, 2023. 1. **Operating Margin**: The operating margin of 8.75% indicates that for every dollar of revenue, Disney was able to control costs effectively to retain 8.75 cents as profit. This is a healthy figure, suggesting that Disney's operational efficiency was strong despite facing a complex operating environment. |code|Ticker|Name|Date|Operating Profit Margin|Operating Profit Margin YoY|market_code| |---|---|---|---|---|---|---| |DIS|DIS.N|The Walt Disney|2023 Q1|6.907111262334127|-20.049729107231666|169| |DIS|DIS.N|The Walt Disney|2023 Q2|8.04377082092351|5.540440918110775|169| |DIS|DIS.N|The Walt Disney|2023 Q3|8.841657182553172|6.3514366064431105|169| |DIS|DIS.N|The Walt Disney|2023 Q4|8.754977614794484|34.790481714317764|169| 2. **Gross Margin**: With a gross margin of 33.41%, Disney demonstrated robust control over its cost of goods sold relative to its revenue. This is a significant margin, reflecting effective cost management and operational excellence. |code|Ticker|Name|Date|Gross Profit Margin|Gross Profit Margin YoY|market_code| |---|---|---|---|---|---|---| |DIS|DIS.N|The Walt Disney|2023 Q1|30.3079|-8.81304325587972|169| |DIS|DIS.N|The Walt Disney|2023 Q2|31.6037|-6.672710574574841|169| |DIS|DIS.N|The Walt Disney|2023 Q3|32.7889|-5.579328695171397|169| |DIS|DIS.N|The Walt Disney|2023 Q4|33.4057|-2.4263649215454897|169| 3. **Net Margin**: A net margin of 3.81% shows that after accounting for all expenses, Disney was able to retain 3.81 cents of every dollar as profit. This margin is still positive, indicating that Disney's overall profitability was positive despite lower net income compared to the previous year. |code|Ticker|Name|Date|Net Profit Margin YoY|Net Profit Margin|market_code| |---|---|---|---|---|---|---| |DIS|DIS.N|The Walt Disney|2023 Q1|9.634834652827761|5.7885|169| |DIS|DIS.N|The Walt Disney|2023 Q2|47.586174509251435|6.2854|169| |DIS|DIS.N|The Walt Disney|2023 Q3|-23.304334436831166|3.9848|169| |DIS|DIS.N|The Walt Disney|2023 Q4|-9.99976398952113|3.8134|169| Disney's ability to maintain these margins despite higher revenues suggests that the company's cost controls were effective. However, the decrease in net income and the decline in Disney+ subscribers indicate areas where cost controls may need to be further refined, particularly in the streaming segment.