Walt Disney Company (DIS)
Liquidity ratios
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.05 | 1.00 | 1.08 | 1.32 | 0.90 |
| Quick ratio | 0.85 | 0.83 | 0.94 | 1.30 | 0.67 |
| Cash ratio | 0.46 | 0.40 | 0.51 | 0.82 | 0.17 |
The liquidity ratios of Walt Disney Co (The) indicate the company's ability to meet its short-term financial obligations.
The current ratio, which measures the company's ability to pay off its short-term liabilities using its current assets, has been relatively stable over the past five years, hovering around 1. This suggests that the company has just enough current assets to cover its current liabilities. However, a current ratio of 1.05 in September 2023 indicates a slight improvement in liquidity compared to the previous year.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventory from current assets, also shows a similar trend. With a quick ratio of 0.99 in September 2023, the company's ability to meet its short-term obligations using its most liquid assets appears to have improved compared to the prior year.
The cash ratio, which specifically measures the company's ability to cover its current liabilities with its cash and cash equivalents, has also shown a positive trend. With a cash ratio of 0.59 in September 2023, the company's liquidity position has strengthened relative to the previous year.
Overall, while the liquidity ratios of Walt Disney Co (The) have exhibited some variability over the years, the latest figures suggest an improvement in the company's ability to meet its short-term financial obligations. However, it is important to note that the company should continue to monitor and manage its liquidity position carefully, especially in light of potential future economic uncertainties.
See also:
Walt Disney Company Liquidity Ratios
Additional liquidity measure
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -181.80 | -228.27 | -265.01 | -137.16 | -233.98 |
The cash conversion cycle, a measure of how efficiently a company manages its working capital, has improved over the past five years for Walt Disney Co. The company's cash conversion cycle was -30.52 days at the end of the fiscal year on September 30, 2023, significantly better than the -41.21 days reported on October 1, 2022. This suggests that Disney Co has been able to collect cash from its sales, pay off its suppliers, and manage its inventory more effectively, leading to a shorter time period between spending cash and receiving it. This improvement indicates better working capital management and may signify enhanced operational efficiency.