Walt Disney Company (DIS)
Liquidity ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | 0.73 | 0.72 | 0.75 | 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 |
| Quick ratio | 0.54 | 0.53 | 0.57 | 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 |
| Cash ratio | 0.17 | 0.17 | 0.20 | 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 |
The liquidity ratios of Walt Disney Company indicate a fluctuating trend over the past few quarters. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has been declining steadily from 1.34 in December 2019 to 0.73 in September 2024. This downward trend may raise concerns about the company's short-term liquidity position.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a downward trend, declining from 1.27 in March 2020 to 0.53 in September 2024. This suggests that the company may be relying more heavily on inventory to meet its short-term obligations.
The cash ratio, which specifically looks at the company's ability to cover its current liabilities with cash and cash equivalents, has exhibited significant volatility over the periods presented, ranging from 0.20 in December 2019 to 0.51 in September 2021. This indicates fluctuations in the company's ability to meet its obligations with readily available cash.
Overall, the declining trend in the current ratio, quick ratio, and the fluctuations in the cash ratio suggest that Walt Disney Company may be facing challenges in maintaining a strong liquidity position in the short term. Investors and analysts may want to further investigate the company's cash management practices and monitor its liquidity position closely.
See also:
Walt Disney Company Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | -176.12 | 89.42 | 81.02 | 92.87 | -181.80 | 88.40 | 90.44 | 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, a key measure of efficiency, reflects how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cycle indicates better liquidity and efficiency in managing working capital.
Based on the data provided for Walt Disney Company, the cash conversion cycle has fluctuated over the past few quarters. In the most recent quarter ending September 30, 2024, the company reported a negative cash conversion cycle of -176.12 days. This negative cycle suggests that Disney is able to generate cash from its operations before having to pay its suppliers, which can be a favorable financial position.
However, looking at the trend over the last few quarters, the company's cash conversion cycle has shown some inconsistency. For instance, in the previous quarter ending June 30, 2024, the cycle was 89.42 days, indicating an increase in the time it takes to convert investments into cash compared to the most recent quarter.
Similarly, in the quarter ending March 31, 2024, the cycle was 81.02 days, reflecting a slight improvement in efficiency compared to the preceding quarter. The quarter ending December 31, 2023, reported a cycle of 92.87 days, which was slightly longer than the current quarter.
Overall, the fluctuations in Walt Disney Company's cash conversion cycle over the quarters suggest varying efficiencies in managing its working capital. It would be important for the company to analyze the underlying factors contributing to these changes and work towards maintaining a stable and efficient cash conversion cycle to support its financial health and operations.