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Walt Disney Co. (DIS) | Long-term Debt and Solvency Analysis

Solvency ratios also known as long-term debt ratios measure a company's ability to meet long-term obligations.


Ratios (Summary)

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Walt Disney Co., debt and solvency ratios

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    Oct 1, 2011 Oct 2, 2010 Oct 3, 2009 Sep 27, 2008 Sep 29, 2007 Sep 30, 2006
Debt to equity
Debt to capital
Interest coverage

Source: Based on data from Walt Disney Co. Annual Reports

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Walt Disney Co.'s debt-to-equity ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011 not reaching 2009 level.
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Walt Disney Co.'s debt-to-capital ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011 not reaching 2009 level.
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Walt Disney Co.'s interest coverage ratio improved from 2009 to 2010 and from 2010 to 2011.

Debt to Equity

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    Oct 1, 2011 Oct 2, 2010 Oct 3, 2009 Sep 27, 2008 Sep 29, 2007 Sep 30, 2006
  Selected Financial Data (USD $ in millions)
Current portion of borrowings
Borrowings
Capital lease obligations
Total debt
Disney Shareholder’s equity
  Debt to Equity, Comparison to Industry
Walt Disney Co.1
  Industry, Consumer Services

Source: Based on data from Walt Disney Co. Annual Reports

2011 Calculations

1 Debt to equity = Total debt ÷ Disney Shareholder’s equity
= ÷ =

Ratio Description The company
Debt-to-equity ratio A solvency ratio calculated as total debt divided by total shareholders' equity. Walt Disney Co.'s debt-to-equity ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011 not reaching 2009 level.

Debt to Capital

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    Oct 1, 2011 Oct 2, 2010 Oct 3, 2009 Sep 27, 2008 Sep 29, 2007 Sep 30, 2006
  Selected Financial Data (USD $ in millions)
Current portion of borrowings
Borrowings
Capital lease obligations
Total debt
Disney Shareholder’s equity
Total capital
  Debt to Capital, Comparison to Industry
Walt Disney Co.1
  Industry, Consumer Services

Source: Based on data from Walt Disney Co. Annual Reports

2011 Calculations

1 Debt to capital = Total debt ÷ Total capital
= ÷ =

Ratio Description The company
Debt-to-capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders' equity. Walt Disney Co.'s debt-to-capital ratio improved from 2009 to 2010 but then slightly deteriorated from 2010 to 2011 not reaching 2009 level.

Interest Coverage

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    Oct 1, 2011 Oct 2, 2010 Oct 3, 2009 Sep 27, 2008 Sep 29, 2007 Sep 30, 2006
  Selected Financial Data (USD $ in millions)
Net income attributable to The Walt Disney Company (Disney)
Add: Net income attributable to noncontrolling interests
Add: Interest expense
Add: Income tax expense (benefit)
Earnings before interest and tax (EBIT)
  Interest Coverage, Comparison to Industry
Walt Disney Co.1
  Industry, Consumer Services

Source: Based on data from Walt Disney Co. Annual Reports

2011 Calculations

1 Interest coverage = EBIT ÷ Interest expense
= ÷ =

Ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Walt Disney Co.'s interest coverage ratio improved from 2009 to 2010 and from 2010 to 2011.

February 8, 2012

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