Walt Disney Company (DIS)

Debt-to-capital ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	38,970,000	39,524,000	39,510,000	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
Total stockholders’ equity	US$ in thousands	100,696,000	100,622,000	99,252,000	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
Debt-to-capital ratio		0.28	0.28	0.28	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

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $38,970,000K ÷ ($38,970,000K + $100,696,000K)
= 0.28

The debt-to-capital ratio for Walt Disney Company has shown a consistent increase over the past years, indicating that the company has been relying more on debt in its capital structure. As of September 30, 2024, the debt-to-capital ratio stands at 0.28, the same as the preceding quarter. This ratio suggests that 28% of the company's capital is financed through debt, while the remaining 72% comes from equity.

The gradual increase in the debt-to-capital ratio from 0.30 in September 2023 to 0.28 in September 2024 could imply that Walt Disney Company has been taking on more debt relative to its capital base. While a higher debt-to-capital ratio can indicate a higher financial risk due to increased leverage, it can also signify that the company is leveraging debt to fund growth opportunities or investments.

It is essential for investors and stakeholders to monitor this trend in the debt-to-capital ratio as it can provide insights into the company's financial health, risk profile, and capital structure decisions. A further increase in the ratio may warrant scrutiny into the company's debt management strategies and its ability to meet debt obligations effectively.