Walt Disney Company (DIS)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.20 | 0.20 | 0.22 | 0.24 | 0.26 |
| Debt-to-capital ratio | 0.28 | 0.30 | 0.32 | 0.35 | 0.39 |
| Debt-to-equity ratio | 0.39 | 0.42 | 0.48 | 0.55 | 0.63 |
| Financial leverage ratio | 1.95 | 2.07 | 2.14 | 2.30 | 2.41 |
The solvency ratios of Walt Disney Company have shown a positive trend over the past five years, indicating improved financial health and lower reliance on debt for financing.
The debt-to-assets ratio has remained relatively stable at around 0.20 to 0.26 over the period, suggesting that Disney has been effective in managing its debt in relation to its total assets.
The debt-to-capital ratio has shown a declining trend from 0.39 in 2020 to 0.28 in 2024, indicating a decrease in the proportion of debt in Disney's total capital structure. This reduction suggests a stronger financial position and lower financial risk.
Similarly, the debt-to-equity ratio has decreased steadily from 0.63 in 2020 to 0.39 in 2024, reflecting a decreasing reliance on debt to finance operations and a strengthening equity base.
The financial leverage ratio, which measures the proportion of debt in relation to equity, has also declined from 2.41 in 2020 to 1.95 in 2024. This trend indicates that Disney has been successful in reducing its debt and decreasing financial leverage, resulting in a more stable capital structure.
Overall, the solvency ratios of Walt Disney Company demonstrate a positive trend towards lower debt levels, stronger equity base, and improved financial stability, signifying a more secure financial position for the company.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | — | — | -0.31 |
Based on the data provided, it appears that the interest coverage ratio for Walt Disney Company was negative in the fiscal year ending September 30, 2020, with a value of -0.31. This implies that the company's operating income was insufficient to cover its interest expenses during that period. Unfortunately, without the interest coverage ratios for the subsequent years (2021, 2022, 2023, and 2024), it is not possible to determine the trend or improvements in this financial metric over time. A negative interest coverage ratio indicates a higher financial risk for the company, as it suggests that it may have difficulty meeting its interest obligations with its current level of operating income. Further analysis of recent data is necessary to assess if Walt Disney Company has been able to strengthen its financial position in more recent years.