Walt Disney Company (DIS)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.21 | 0.20 | 0.22 | 0.22 | 0.22 | 0.22 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.25 | 0.26 | 0.26 | 0.26 | 0.21 | 0.19 | 0.20 | 0.17 | 0.18 |
| Debt-to-capital ratio | 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 | 0.30 | 0.29 | 0.30 |
| Debt-to-equity ratio | 0.41 | 0.42 | 0.46 | 0.46 | 0.47 | 0.48 | 0.50 | 0.51 | 0.53 | 0.55 | 0.59 | 0.60 | 0.63 | 0.63 | 0.63 | 0.47 | 0.42 | 0.43 | 0.40 | 0.42 |
| 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 |
The solvency ratios of Walt Disney Company indicate its ability to meet its long-term financial obligations and the extent of its leverage. The debt-to-assets ratio has remained relatively stable over the past few quarters, ranging from 0.20 to 0.26, suggesting that around 20-26% of the company's assets are financed by debt.
The debt-to-capital ratio and debt-to-equity ratio have shown a slightly increasing trend, with the debt-to-capital ratio ranging from 0.29 to 0.39 and the debt-to-equity ratio ranging from 0.41 to 0.63 in the same period. This indicates that the company has been gradually increasing its reliance on debt to finance its operations.
The financial leverage ratio, which measures the proportion of a company's assets that are financed by debt, has shown fluctuations but with an overall upward trend. It has increased from 1.96 to 2.42 over the same period. This suggests that the company has increased its leverage and is becoming more reliant on debt financing.
Overall, Walt Disney Company's solvency ratios indicate that the company has been taking on more debt to finance its operations, which may pose potential risks in the long term if not managed properly. Monitoring these ratios will be crucial to assess the company's financial health and its ability to meet its financial obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | — | — | — | — | — | — | — | — | — | 1.69 | -1.69 | -1.78 | -0.31 | 0.93 | 5.40 | 10.14 |
The interest coverage ratio for Walt Disney Company has been fluctuating significantly over the past few quarters.
In the most recent quarter, there is no specific data available for interest coverage. Looking back to the previous quarters, the company experienced negative interest coverage in March and June of 2023, indicating that its earnings were insufficient to cover its interest expenses during those periods.
However, the interest coverage ratio rebounded strongly in September and December of 2022, reaching 5.40 and 10.14 respectively. This demonstrates that the company had strong earnings relative to its interest obligations during those quarters.
Overall, Walt Disney Company has shown mixed performance in terms of interest coverage, with periods of both strong and weak coverage ratios. It will be important to monitor future financial results to assess the company's ability to consistently meet its interest payments.