Walt Disney Company (DIS)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	100,696,000	99,277,000	95,008,000	88,553,000	83,583,000
Debt-to-equity ratio		0.39	0.42	0.48	0.55	0.63

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $38,970,000K ÷ $100,696,000K
= 0.39

The debt-to-equity ratio of Walt Disney Company has demonstrated a decreasing trend over the past five years, declining from 0.63 in September 2020 to 0.39 in September 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments in comparison to its equity. A lower debt-to-equity ratio generally signifies a lower level of financial risk, as the company is less leveraged and has a stronger equity position to cushion against potential financial challenges.

The declining trend in Walt Disney Company's debt-to-equity ratio suggests improved financial stability and a stronger capital structure, which may be attributed to strategic debt repayment, better profitability, or increased equity financing. It indicates that the company may be managing its debt levels prudently and enhancing its financial flexibility by relying more on equity financing.

Overall, the decreasing debt-to-equity ratio of Walt Disney Company reflects a positive financial trend and a potentially stronger financial position, allowing the company to weather economic uncertainties and pursue growth opportunities with a more balanced and sustainable capital structure.