Walt Disney Company (DIS)

Quick ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Cash	US$ in thousands	14,182,000	11,615,000	15,959,000	17,914,000	5,418,000
Short-term investments	US$ in thousands	—	—	—	3,903,000	—
Receivables	US$ in thousands	12,330,000	12,652,000	13,367,000	12,708,000	15,481,000
Total current liabilities	US$ in thousands	31,139,000	29,073,000	31,077,000	26,628,000	31,341,000
Quick ratio		0.85	0.83	0.94	1.30	0.67

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($14,182,000K + $—K + $12,330,000K) ÷ $31,139,000K
= 0.85

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term liabilities with its most liquid assets. It is calculated by dividing quick assets (cash, marketable securities, and receivables) by current liabilities.

Walt Disney Co (The) quick ratio has shown some fluctuation over the past five years. As of September 30, 2023, the quick ratio stood at 0.99, indicating that the company had $0.99 of quick assets available for every $1 of current liabilities. This suggests a relatively lower level of liquidity compared to the previous year.

Comparing this to previous years, the quick ratio was 0.94 in 2022, 1.04 in 2021, 1.26 in 2020, and 0.84 in 2019. The decrease in 2023 from 2022 may indicate a decrease in the company's ability to cover short-term obligations with its liquid assets, although it is still above 1 which is generally considered healthy.

The downward trend from 2020 to 2023, with a peak in 2020 followed by a decline, should be examined further to understand the causes. Additionally, a quick ratio below 1 may suggest potential liquidity challenges in meeting short-term obligations.

In conclusion, while the Walt Disney Co (The) quick ratio has fluctuated over the past five years, it is important to monitor it closely to assess the company's short-term liquidity position and its ability to meet its current obligations.