Walt Disney Company (DIS)
Solvency ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | 0.20 | 0.20 | 0.20 | 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 |
| Debt-to-capital ratio | 0.28 | 0.28 | 0.28 | 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 |
| Debt-to-equity ratio | 0.39 | 0.39 | 0.40 | 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 |
| Financial leverage ratio | 1.95 | 1.97 | 1.97 | 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 |
Walt Disney Company's solvency ratios provide insights into its ability to meet its financial obligations and manage its debt levels effectively.
The Debt-to-assets ratio has remained relatively stable around 0.20 to 0.26 over the past few years, indicating that Disney finances a relatively small portion of its assets through debt.
The Debt-to-capital ratio and Debt-to-equity ratio have shown a slightly increasing trend, indicating that Disney relies more on debt and capital to finance its operations. The ratios have increased from 0.28 to 0.39 and from 0.39 to 0.63 respectively over the same period.
The Financial leverage ratio has shown fluctuations but has generally increased, indicating that Disney's reliance on debt to finance assets and operations has increased. The ratio has increased from around 1.95 to 2.42 over the past few years.
Overall, while Disney's solvency ratios suggest a relatively stable financial position with acceptable levels of debt, the increasing trend in the ratios over the years indicates a growing reliance on debt financing. This trend may pose risks in terms of interest payments and financial flexibility, requiring close monitoring to ensure sustainable financial health.
Coverage ratios
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 |
Walt Disney Company's interest coverage ratio has shown significant fluctuation over the past eight quarters. The interest coverage ratio provides an indication of a company's ability to pay interest expenses on its outstanding debt. A higher ratio is generally preferable as it suggests a company is more capable of meeting its interest obligations.
In the most recent quarter, there is no specific data available for the interest coverage ratio. However, looking at historical data, the interest coverage ratio was negative in the first quarter of 2021 and the fourth quarter of 2020, indicating that the company did not have sufficient earnings to cover its interest expenses during those periods.
The interest coverage ratio improved significantly in the third quarter of 2021, reaching 10.14, which suggests that the company's earnings were more than sufficient to cover its interest payments. This positive trend continued in the following quarters until the first quarter of 2023 when the interest coverage ratio decreased, indicating a potential decline in the company's ability to cover its interest expenses.
It is important to note that a negative interest coverage ratio, as seen in some quarters, raises concerns about the company's financial stability and its ability to meet its debt obligations. Walt Disney Company should focus on improving its interest coverage ratio to ensure financial health and sustainability in the long term.