Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Walt Disney Co. (NYSE:DIS)

Analysis of Debt

Advanced level


Total Debt (Carrying Amount)

Walt Disney Co., balance sheet: debt

US$ in millions

Microsoft Excel LibreOffice Calc
Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Oct 1, 2016 Oct 3, 2015 Sep 27, 2014
Current portion of borrowings 8,857  3,790  6,172  3,687  4,563  2,164 
Borrowings, excluding current portion 38,129  17,084  19,119  16,483  12,773  12,676 
Total borrowings (carrying amount) 46,986  20,874  25,291  20,170  17,336  14,840 

Based on: 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25), 10-K (filing date: 2014-11-19).

Debt item Description The company
Total borrowings (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Walt Disney Co.’s total debt decreased from 2017 to 2018 but then increased from 2018 to 2019 exceeding 2017 level.

Total Debt (Fair Value)

Microsoft Excel LibreOffice Calc
Sep 28, 2019
Selected Financial Data (US$ in millions)
Total borrowings (fair value) 49,958 
Financial Ratio
Debt, fair value to carrying amount ratio 1.06

Based on: 10-K (filing date: 2019-11-20).


Weighted-average Interest Rate on Debt

Effective interest rate on borrowings: 3.28%

Interest Rate Debt Amount1 Interest Rate × Debt Amount Weighted-average Interest Rate2
3.28% 46,986  1,541 
Total 46,986  1,541 
3.28%

Based on: 10-K (filing date: 2019-11-20).

1 US$ in millions

2 Weighted-average interest rate = 100 × 1,541 ÷ 46,986 = 3.28%


Interest Costs Incurred

Walt Disney Co., interest costs incurred

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Oct 1, 2016 Oct 3, 2015 Sep 27, 2014
Interest expense, net of capitalized interest 1,246  682  507  354  265  294 
Interest capitalized 222  125  87  139  110  73 
Interest costs incurred 1,468  807  594  493  375  367 

Based on: 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25), 10-K (filing date: 2014-11-19).

Debt item Description The company
Interest expense, net of capitalized interest Amount of the cost of borrowed funds accounted for as interest expense for debt. Walt Disney Co.’s interest expense, net of capitalized interest increased from 2017 to 2018 and from 2018 to 2019.
Interest capitalized Amount of interest costs capitalized disclosed as an adjusting item to interest costs incurred. Walt Disney Co.’s interest capitalized increased from 2017 to 2018 and from 2018 to 2019.
Interest costs incurred Total interest costs incurred during the period and either capitalized or charged against earnings. Walt Disney Co.’s interest costs incurred increased from 2017 to 2018 and from 2018 to 2019.

Adjusted Interest Coverage Ratio

Microsoft Excel LibreOffice Calc
Sep 28, 2019 Sep 29, 2018 Sep 30, 2017 Oct 1, 2016 Oct 3, 2015 Sep 27, 2014
Selected Financial Data (US$ in millions)
Net income attributable to The Walt Disney Company (Disney) 11,054  12,598  8,980  9,391  8,382  7,501 
Add: Net income attributable to noncontrolling interest 530  468  386  399  470  503 
Less: Income from discontinued operations, includes income tax expense 671  —  —  —  —  — 
Add: Income tax expense 3,031  1,663  4,422  5,078  5,016  4,242 
Add: Interest expense 1,246  682  507  354  265  294 
Earnings before interest and tax (EBIT) 15,190  15,411  14,295  15,222  14,133  12,540 
 
Interest costs incurred 1,468  807  594  493  375  367 
Financial Ratio With and Without Capitalized Interest
Interest coverage ratio (without capitalized interest)1 12.19 22.60 28.20 43.00 53.33 42.65
Adjusted interest coverage ratio (with capitalized interest)2 10.35 19.10 24.07 30.88 37.69 34.17

Based on: 10-K (filing date: 2019-11-20), 10-K (filing date: 2018-11-21), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-23), 10-K (filing date: 2015-11-25), 10-K (filing date: 2014-11-19).

2019 Calculations

1 Interest coverage ratio (without capitalized interest) = EBIT ÷ Interest expense
= 15,190 ÷ 1,246 = 12.19

2 Adjusted interest coverage ratio (with capitalized interest) = EBIT ÷ Interest costs incurred
= 15,190 ÷ 1,468 = 10.35


Solvency ratio Description The company
Adjusted interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). Walt Disney Co.’s adjusted interest coverage ratio deteriorated from 2017 to 2018 and from 2018 to 2019.