Walt Disney Company (DIS)

Cash ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	6,002,000	14,182,000	11,615,000	15,959,000	17,914,000
Short-term investments	US$ in thousands	—	—	—	—	3,903,000
Total current liabilities	US$ in thousands	34,599,000	31,139,000	29,073,000	31,077,000	26,628,000
Cash ratio		0.17	0.46	0.40	0.51	0.82

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,002,000K + $—K) ÷ $34,599,000K
= 0.17

The cash ratio of Walt Disney Company has shown a declining trend over the past five years, decreasing from 0.82 in September 2020 to 0.17 in September 2024. This indicates that the company's ability to cover its short-term liabilities with its cash and cash equivalents has weakened over the years.

A cash ratio of 0.17 in September 2024 means that for every dollar of current liabilities, Walt Disney has $0.17 in cash and cash equivalents available, which may suggest potential liquidity challenges. It is important for the company to closely monitor its cash management practices and ensure that it maintains an adequate level of liquidity to meet its short-term obligations.

The significant decline in the cash ratio raises concerns about the company's liquidity position and highlights the importance of closely monitoring its financial health and cash flow management strategies going forward.