Walt Disney Company (DIS)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 12,729,000 | 12,330,000 | 12,652,000 | 13,367,000 | 12,708,000 |
| Total current liabilities | US$ in thousands | 34,599,000 | 31,139,000 | 29,073,000 | 31,077,000 | 26,628,000 |
| Quick ratio | 0.54 | 0.85 | 0.83 | 0.94 | 1.30 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,002,000K
+ $—K
+ $12,729,000K)
÷ $34,599,000K
= 0.54
The quick ratio of Walt Disney Company has been on a decreasing trend over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company might have difficulty meeting its short-term liabilities with its quick assets alone.
In 2020, the quick ratio was relatively healthy at 1.30, suggesting the company had sufficient quick assets to cover its short-term obligations. However, there has been a gradual decline in the quick ratio since then, reaching 0.54 by September 30, 2024. This significant decrease in the quick ratio could raise concerns about the company's liquidity position and its ability to meet immediate financial obligations.
It is essential for investors and stakeholders to monitor the quick ratio closely, as a continued decline could indicate potential liquidity challenges for Walt Disney Company in the future. Further analysis of the company's overall liquidity position and cash flow management may be necessary to better understand the reasons behind the decreasing trend in the quick ratio.
Peer comparison
Sep 30, 2024