Walt Disney Company (DIS)
Quick ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 7,192,000 | 14,182,000 | 11,458,000 | 10,399,000 | 8,470,000 | 11,615,000 | 12,959,000 | 13,272,000 | 14,444,000 | 15,959,000 | 16,070,000 | 15,890,000 | 17,068,000 | 17,914,000 | 23,115,000 | 14,339,000 | 6,833,000 | 5,418,000 | 6,728,000 | 10,108,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | 4,045,000 | 4,309,000 | 4,037,000 | 3,903,000 | 3,611,000 | — | — | — | — | — |
| Receivables | US$ in thousands | 14,115,000 | 12,330,000 | 13,112,000 | 12,770,000 | 13,993,000 | 12,652,000 | 13,685,000 | 13,746,000 | 14,882,000 | 13,367,000 | 13,355,000 | 12,533,000 | 14,051,000 | 12,708,000 | 12,622,000 | 14,532,000 | 17,100,000 | 15,481,000 | 15,673,000 | 14,593,000 |
| Total current liabilities | US$ in thousands | 31,033,000 | 31,139,000 | 28,234,000 | 28,056,000 | 27,070,000 | 29,073,000 | 30,704,000 | 29,601,000 | 30,037,000 | 31,077,000 | 27,413,000 | 26,642,000 | 26,546,000 | 26,628,000 | 30,917,000 | 35,473,000 | 34,797,000 | 31,341,000 | 44,593,000 | 44,376,000 |
| 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 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($7,192,000K
+ $—K
+ $14,115,000K)
÷ $31,033,000K
= 0.69
The quick ratio of Walt Disney Company has shown some fluctuations over the past several quarters. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets.
From Dec 31, 2019, to Mar 31, 2021, the quick ratio increased steadily from 0.69 to 1.23, indicating an improvement in the company's ability to meet its short-term obligations without relying on inventory. This upward trend suggests a strengthening financial position during this period.
However, from Jun 30, 2021, to Dec 31, 2022, the quick ratio fluctuated between 0.94 and 1.32, showcasing some volatility in the company's liquidity position. While the quick ratio remained above 1 during this period, indicating that the company had enough liquid assets to cover its short-term liabilities, the fluctuations suggest a potential instability in managing short-term obligations.
The most recent data available shows that the quick ratio decreased to 0.69 as of Dec 31, 2023, representing a significant decline in liquidity compared to the previous quarters. This drop may raise concerns about the company's ability to readily meet its short-term obligations using its current assets without relying on inventory.
In conclusion, while the quick ratio of Walt Disney has displayed some positive trends in the past, the recent decline raises questions about the company's short-term liquidity position, indicating a potential need for further analysis and monitoring of its financial health.
Peer comparison
Dec 31, 2023