Walt Disney Company (DIS)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 196,219,000 | 205,579,000 | 203,631,000 | 203,609,000 | 201,549,000 |
| Total stockholders’ equity | US$ in thousands | 100,696,000 | 99,277,000 | 95,008,000 | 88,553,000 | 83,583,000 |
| Financial leverage ratio | 1.95 | 2.07 | 2.14 | 2.30 | 2.41 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $196,219,000K ÷ $100,696,000K
= 1.95
The financial leverage ratio of Walt Disney Company has shown a declining trend over the past five years. The ratio decreased from 2.41 in 2020 to 1.95 in 2024, reflecting a reduction in the company's reliance on debt to finance its operations and investments. This indicates that the company has been able to strengthen its financial position by reducing its debt levels relative to its equity.
A lower financial leverage ratio suggests a lower financial risk for the company, as it indicates that a smaller portion of its assets is funded by debt, which can be beneficial in times of economic uncertainty or fluctuating interest rates. Walt Disney's decreasing financial leverage ratio signals improved financial stability and a more conservative capital structure, which may enhance its ability to weather economic downturns and pursue strategic initiatives with lower risk.
Peer comparison
Sep 30, 2024