Walt Disney Company (DIS)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 197,774,000 | 205,579,000 | 203,783,000 | 204,858,000 | 202,124,000 | 203,631,000 | 204,074,000 | 202,453,000 | 203,311,000 | 203,609,000 | 202,221,000 | 200,250,000 | 201,888,000 | 201,549,000 | 207,649,000 | 206,294,000 | 200,948,000 | 193,984,000 | 209,475,000 | 214,342,000 |
| 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 |
| Financial leverage ratio | 1.96 | 2.07 | 2.09 | 2.09 | 2.10 | 2.14 | 2.21 | 2.23 | 2.26 | 2.30 | 2.33 | 2.34 | 2.40 | 2.41 | 2.42 | 2.28 | 2.24 | 2.18 | 2.32 | 2.38 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $197,774,000K ÷ $100,721,000K
= 1.96
The financial leverage ratio of Walt Disney Company has been fluctuating over the past few quarters, ranging from 1.96 to 2.42. This ratio indicates the proportion of the company's total assets that are financed by debt, with higher ratios suggesting higher levels of debt relative to assets.
The trend shows an increasing pattern, peaking at 2.42 in December 2020 before slightly decreasing to 2.07 in September 2023. This may indicate that Walt Disney Company has been gradually relying more on debt financing to fund its operations and investments.
The higher financial leverage ratio may bring benefits such as potentially higher returns for shareholders due to debt-fueled investments. However, it also increases the company's financial risk as it becomes more vulnerable to economic downturns or changes in interest rates.
Investors and analysts closely monitor the financial leverage ratio to assess the company's ability to meet its debt obligations and manage financial risks effectively. It is essential for Walt Disney Company to carefully balance its debt levels to maintain financial stability and ensure sustainable growth.
Peer comparison
Dec 31, 2023