Walt Disney Company (DIS)
Liquidity ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.84 | 1.05 | 1.07 | 1.01 | 0.99 | 1.00 | 1.02 | 1.06 | 1.10 | 1.08 | 1.24 | 1.23 | 1.31 | 1.32 | 1.34 | 0.94 | 0.80 | 0.90 | 0.70 | 0.77 |
| Quick ratio | 0.69 | 0.85 | 0.87 | 0.83 | 0.83 | 0.83 | 0.87 | 0.91 | 0.98 | 0.94 | 1.22 | 1.23 | 1.32 | 1.30 | 1.27 | 0.81 | 0.69 | 0.67 | 0.50 | 0.56 |
| Cash ratio | 0.23 | 0.46 | 0.41 | 0.37 | 0.31 | 0.40 | 0.42 | 0.45 | 0.48 | 0.51 | 0.73 | 0.76 | 0.80 | 0.82 | 0.86 | 0.40 | 0.20 | 0.17 | 0.15 | 0.23 |
The liquidity ratios of Walt Disney Company show fluctuations over time. The current ratio, which measures the company's ability to cover short-term obligations with current assets, has been mostly above 1 in recent quarters, indicating a healthy liquidity position. However, there was a decline in the current ratio at the end of 2023 compared to the previous quarters.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows a similar trend of fluctuations with some quarters falling below 1. This suggests that Disney may have some difficulty in meeting its short-term obligations without relying on inventory.
The cash ratio, representing the most conservative measure of liquidity as it focuses solely on cash and cash equivalents, has also been variable over the quarters. The ratio has been below 1 in most quarters, although it increased at the end of 2023 compared to the prior quarter.
Overall, while Walt Disney Company has maintained a generally acceptable liquidity position, the fluctuations in these ratios indicate the need for consistent monitoring and management of the company's short-term financial obligations.
See also:
Walt Disney Company Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 77.90 | -82.93 | 73.90 | 73.66 | 96.41 | -228.27 | 93.49 | 95.58 | 103.40 | -264.99 | 109.34 | 104.91 | 112.16 | -137.28 | 92.42 | 99.38 | 109.35 |
The cash conversion cycle for Walt Disney Company has exhibited fluctuations over the past several quarters. In the most recent period as of December 31, 2023, the company's cash conversion cycle was 77.90 days, indicating that it takes approximately 78 days for Disney to convert its resources invested in inventory and receivables into cash.
Looking back at the trend, there seems to be variability in the company's cash conversion cycle, with both positive and negative values recorded. A negative cash conversion cycle, such as the extreme value of -264.99 days in September 2021, implies that Disney was able to collect cash from customers before paying its suppliers and vendors, a situation indicative of strong working capital management.
On the other hand, the positive values, like the peak of 112.16 days in March 2021, suggest a longer period required to convert resources into cash, which may be related to issues like delays in inventory turnover or longer collection periods from customers.
Overall, monitoring and managing the cash conversion cycle is essential for Disney to optimize its working capital efficiency, ensure liquidity, and streamline its operations for sustainable financial performance.