Walt Disney Company (DIS)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	38,970,000	42,101,000	45,299,000	48,540,000	52,917,000
Total assets	US$ in thousands	196,219,000	205,579,000	203,631,000	203,609,000	201,549,000
Debt-to-assets ratio		0.20	0.20	0.22	0.24	0.26

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $38,970,000K ÷ $196,219,000K
= 0.20

The debt-to-assets ratio for Walt Disney Company has shown a decreasing trend over the past five years, indicating a relatively prudent approach to managing debt levels compared to its total assets. The ratio decreased from 0.26 in 2020 to 0.20 in 2024. This suggests that the company has been successful in reducing its reliance on debt financing in relation to its total assets.

A lower debt-to-assets ratio can be a positive indicator of financial stability and a lower risk of default, as it implies that the company has a higher proportion of assets compared to its debt obligations. This may also indicate that the company has been able to effectively finance its operations and investments through means other than debt, such as internal cash flows or equity financing.

Overall, the decreasing trend in Walt Disney Company's debt-to-assets ratio demonstrates a favorable financial position in terms of managing debt levels relative to its asset base, which could strengthen its financial flexibility and resilience in the long term.