Walt Disney Company (DIS)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 25,241,000 | 32,763,000 | 29,098,000 | 33,657,000 | 35,251,000 |
| Total current liabilities | US$ in thousands | 34,599,000 | 31,139,000 | 29,073,000 | 31,077,000 | 26,628,000 |
| Current ratio | 0.73 | 1.05 | 1.00 | 1.08 | 1.32 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $25,241,000K ÷ $34,599,000K
= 0.73
Walt Disney Company's current ratio has exhibited a declining trend over the past five years, from 1.32 in 2020 to 0.73 in 2024. This indicates a weakening liquidity position, as the company's current assets are becoming less sufficient to cover its current liabilities.
A current ratio below 1 suggests that the company may have difficulty meeting its short-term obligations with its current assets alone. This could point to potential liquidity challenges or inefficiencies in managing working capital.
It is important for investors and analysts to monitor this trend closely, as a low current ratio may indicate a higher risk of financial distress or an inability to capitalize on short-term opportunities. Management may need to implement strategies to improve liquidity, such as optimizing inventory levels, accelerating accounts receivable collections, or renegotiating terms with suppliers.
Peer comparison
Sep 30, 2024