Walt Disney Company (DIS)

Debt-to-capital 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
Long-term debt	US$ in thousands	41,603,000	42,101,000	44,544,000	45,066,000	45,128,000	45,299,000	46,022,000	46,624,000	47,349,000	48,540,000	51,110,000	50,903,000	52,878,000	52,917,000	54,197,000	42,770,000	38,057,000	38,129,000	36,311,000	37,803,000
Total stockholders’ equity	US$ in thousands	100,721,000	99,277,000	97,610,000	97,859,000	96,149,000	95,008,000	92,500,000	90,636,000	89,864,000	88,553,000	86,741,000	85,540,000	84,071,000	83,583,000	85,866,000	90,407,000	89,757,000	88,877,000	90,472,000	89,938,000
Debt-to-capital ratio		0.29	0.30	0.31	0.32	0.32	0.32	0.33	0.34	0.35	0.35	0.37	0.37	0.39	0.39	0.39	0.32	0.30	0.30	0.29	0.30

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $41,603,000K ÷ ($41,603,000K + $100,721,000K)
= 0.29

The debt-to-capital ratio of Walt Disney Company has fluctuated over the past few quarters, ranging from 0.29 to 0.39. This ratio reflects the proportion of a company's capital that is financed through debt. A lower ratio indicates a lower level of debt relative to capital, suggesting a lower financial risk.

In the provided data, the trend shows an increase in the debt-to-capital ratio from 0.29 in Q1 2019 to 0.39 in Q2 2021, followed by a slight decrease to 0.30 in Q3 2019 and then a rise to 0.35 in Q3 2021, before fluctuating between 0.29 and 0.39 until the latest reported quarter at 0.29 in Q4 2023.

It is important to note that a higher debt-to-capital ratio can indicate increased financial risk due to higher reliance on debt financing. Walt Disney seems to have managed its debt levels within a reasonable range for the most part, but some quarters show higher leverage compared to others. Monitoring this ratio over time can provide insights into the company's capital structure and financial health.