DIS (The Walt Disney Co) Financial Strength (2024)

What is The Walt Disney Co Financial Strength?

The Walt Disney Co has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

The Walt Disney Co's Interest Coverage for the quarter that ended in Jun. 2024 was 6.59.The Walt Disney Co's debt to revenue ratio for the quarter that ended in Jun. 2024 was 0.51.As of today, The Walt Disney Co's Altman Z-Score is 1.97.

Competitive Comparison of The Walt Disney Co's Financial Strength

For the Entertainment subindustry, The Walt Disney Co's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

The Walt Disney Co's Financial Strength Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, The Walt Disney Co's Financial Strength distribution charts can be found below:

* The bar in red indicates where The Walt Disney Co's Financial Strength falls into.

The Walt Disney Co Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

The Walt Disney Co's Interest Expense for the months ended in Jun. 2024 was $-509 Mil. Its Operating Income for the months ended in Jun. 2024 was $3,354 Mil. And its for the quarter that ended in Jun. 2024 was $39,524 Mil.

The Walt Disney Co's Interest Coverage for the quarter that ended in Jun. 2024 is

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2024 )	/	Interest Expense (Q: Jun. 2024 )
	=	-1	*	3354	/	-509
	=	6.59

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

The Walt Disney Co's Debt to Revenue Ratio for the quarter that ended in Jun. 2024 is

Debt to Revenue Ratio	=	Total Debt (Q: Jun. 2024 )			/	Revenue
	=	(	+	)	/	Revenue
	=	(8060	+	39524)	/	92620
	=	0.51

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

The Walt Disney Co has a Z-score of 1.97, indicating it is in Grey Zones. This implies that The Walt Disney Co is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 1.97 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The Walt Disney Co(NYSE:DIS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

The Walt Disney Co has the Financial Strength Rank of 6.

The Walt Disney Co Financial Strength Related Terms

Thank you for viewing the detailed overview of The Walt Disney Co's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.

The Walt Disney Co Business Description

Industry

GURUFOCUS.COM »STOCK LIST »Communication Services » Media - Diversified » The Walt Disney Co (NYSE:DIS) » Definitions » Financial Strength

Comparable Companies

NFLX LYV WBD FWONA FOXA NWSA WMG SIRI ROKU TKO XAMS:UMG XPAR:BOL XPAR:VIV XTER:EVD EDR PARA XPAR:ODET TSE:9602 XKRX:352820 MSGS

Traded in Other Exchanges

DIS:Mexico 1DIS:Italy WDPd:UK 0QZO:UK WDP0:Germany WDP:Germany WDP:Germany WDP:Germany WDP:Germany DIS:Chile DIS:Canada DISB34:Brazil DIS:Austria DISN:Argentina

Address

500 South Buena Vista Street, Burbank, CA, USA, 91521

Website

https://www.thewaltdisneycompany.com

Disney operates in three global business segments: entertainment, sports, and experiences. Entertainment and experiences both benefit from franchises and characters the firm has created over the course of a century. Entertainment includes the ABC broadcast network, several cable television networks, and the Disney+ and Hulu streaming services. Within the segment, Disney also engages in movie and television production and distribution, with content licensed to movie theaters, other content providers, or, increasingly, kept in-house for use on Disney's own streaming platform and television networks. The sports segment houses ESPN and the ESPN+ streaming service. Experiences contains Disney's theme parks and vacation destinations, and also benefits from merchandise licensing.

Executives

Sonia L Coleman	officer: Sr. EVP and Chief HR Officer	500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Brent Woodford	officer: EVP, Control, Fin Plan & Tax	1441 GARDINER LANE, LOUISVILLE KY 40213
Amy Chang	director	2100 SEAPORT BLVD., C/O INFORMATICA CORPORATION, REDWOOD CITY CA 94063
Kevin A Lansberry	officer: Interim Chief Finan Officer	500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Christine M Mccarthy	officer: SEVP-Chief Financial Officer	500 SOUTH BUENA VISTA STREET, BURBANK CA 91521-0964
Carolyn Everson	director	C/O THE HERTZ CORPORATION, 225 BRAE BOULEVARD, PARK RIDGE NJ 07656-0713
Kristina K Schake	officer: Sr. EVP and Chief Comm Officer	500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Horacio E Gutierrez	officer: Sr EVP, General Counsel & Secy	500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Geoff Morrell	officer: SEVP Chf Corp Affairs Officer	500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Robert A Chapek	officer: Chief Executive Officer	500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Paul J Richardson	officer: Sr. EVP and Chief HR Officer	500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Calvin Mcdonald	director	C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Robert A Iger	director, officer: Chairman and CEO	C/O WALT DISNEY CO, 500 S BUENA VISTA STREET, BURBANK CA 91521-1062
Zenia B. Mucha	officer: SEVP Corporate Communications	500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Mary Jayne Parker	officer: SEVP and Chief HR Officer	500 SOUTH BUENA VISTA STREET, BURBANK CA 91521-0966