Walt Disney Company (DIS)

Debt-to-equity 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-equity ratio		0.42	0.48	0.55	0.63	0.43

September 30, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $42,101,000K ÷ $99,277,000K
= 0.42

The debt-to-equity ratio of Walt Disney Co (The) has exhibited a fluctuating trend over the past five years. In the most recent fiscal year ending September 30, 2023, the company's debt-to-equity ratio stood at 0.47, indicating a lower level of leverage compared to the previous year. This implies that the company relied less on debt financing and had a higher proportion of equity in its capital structure.

The decreasing trend in the debt-to-equity ratio from 2021 to 2023 reflects a potential improvement in the company's financial leverage and risk management. The reduction in leverage suggests a more conservative approach to financing, which could indicate a lower financial risk for the company.

It is noteworthy that the debt-to-equity ratio reached its lowest point in the past five years in 2023, signaling a relatively stronger equity position compared to debt. This can be viewed positively by investors and creditors as it indicates a healthier balance between debt and equity in the company's capital structure.

Overall, the declining trend in Walt Disney Co (The)'s debt-to-equity ratio suggests a potential improvement in its financial strength and stability, as the company seems to be relying less on debt to finance its operations and investments, which may contribute to a more sustainable financial position.