Walt Disney Company (DIS)

Debt-to-capital ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	42,101,000	45,299,000	48,540,000	52,917,000	38,129,000
Total stockholders’ equity	US$ in thousands	99,277,000	95,008,000	88,553,000	83,583,000	88,877,000
Debt-to-capital ratio		0.30	0.32	0.35	0.39	0.30

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $42,101,000K ÷ ($42,101,000K + $99,277,000K)
= 0.30

The debt-to-capital ratio is a financial metric that measures a company's financial leverage by comparing its total debt to its total capital. For Walt Disney Co (The), the trend in the debt-to-capital ratio over the past five years shows fluctuations, but generally indicates a decreasing reliance on debt for financing its operations.

As of September 30, 2023, the debt-to-capital ratio stands at 0.32, compared to 0.34 in the previous year and 0.38 two years ago. This downward trend suggests that Disney has been able to reduce its reliance on debt in relation to its overall capital structure.

A lower debt-to-capital ratio is generally viewed positively by investors and analysts as it indicates a healthier financial position and lower financial risk. It suggests that Disney has been able to fund its operations and investments without significantly increasing its debt levels relative to its total capital.

The decreasing trend in the debt-to-capital ratio could be attributed to various factors such as improved operational efficiency, strong cash flow generation, and effective management of capital structure and debt levels. It may also indicate prudent financial management and a strategic focus on maintaining a healthy balance between debt and equity financing.

Overall, the decreasing trend in Walt Disney Co (The)'s debt-to-capital ratio reflects a positive and improving financial position and may provide investors with confidence in the company's ability to manage its debt obligations and maintain a strong capital structure.