Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Walt Disney Co., liquidity ratios
Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03).
- Current Ratio
- The current ratio exhibited a declining trend over the observed periods, starting at 1.32 and decreasing gradually to 0.71 by the most recent year. This decline indicates a reduction in the company's ability to cover its short-term liabilities with its short-term assets, suggesting a potential increase in liquidity risk.
- Quick Ratio
- The quick ratio also showed a continuous decrease from 1.15 to 0.55. This sharper decline compared to the current ratio suggests that the company’s most liquid assets (excluding inventories) have diminished more significantly. This may point to challenges in meeting immediate obligations without relying on inventory sales.
- Cash Ratio
- The cash ratio experienced the most pronounced drop, falling from 0.67 to 0.17 over the reviewed timeframe. This indicates a substantial reduction in the company's cash and cash equivalents relative to current liabilities, potentially leading to tight cash flow conditions and reduced financial flexibility.
- Overall Analysis
- The downward trends across all three liquidity measures suggest a weakening liquidity position. The company's capacity to cover short-term liabilities using current assets, liquid assets, and cash has deteriorated steadily. This trend may warrant closer examination to assess the company's working capital management and its ability to meet immediate financial obligations.
Current Ratio
Walt Disney Co., current ratio calculation, comparison to benchmarks
| Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | 24,267) | 25,241) | 32,763) | 29,098) | 33,657) | 35,251) | |
| Current liabilities | 34,162) | 34,599) | 31,139) | 29,073) | 31,077) | 26,628) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.71 | 0.73 | 1.05 | 1.00 | 1.08 | 1.32 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Alphabet Inc. | — | 1.84 | 2.10 | 2.38 | 2.93 | 3.07 | |
| Comcast Corp. | — | 0.68 | 0.60 | 0.78 | 0.85 | 0.93 | |
| Meta Platforms Inc. | 2.60 | 2.98 | 2.67 | 2.20 | 3.15 | — | |
| Netflix Inc. | 1.19 | 1.22 | 1.12 | 1.17 | 0.95 | — | |
| Trade Desk Inc. | — | 1.86 | 1.72 | 1.90 | 1.71 | 1.57 | |
| Current Ratio, Sector | |||||||
| Media & Entertainment | — | 1.59 | 1.67 | 1.77 | 2.08 | — | |
| Current Ratio, Industry | |||||||
| Communication Services | — | 1.24 | 1.31 | 1.29 | 1.42 | — | |
Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 24,267 ÷ 34,162 = 0.71
2 Click competitor name to see calculations.
- Current Assets
- The current assets show a fluctuating but generally declining trend over the analyzed periods. Starting at 35,251 million USD, they decrease to 33,657 million USD, then continue to fall sharply to 29,098 million USD. There is a moderate recovery to 32,763 million USD, followed by a significant decline to 25,241 million USD and a further slight reduction to 24,267 million USD by the last period.
- Current Liabilities
- Current liabilities exhibit a persistent upward trend throughout the periods. Starting at 26,628 million USD, they increase steadily to 31,077 million USD, slightly decrease to 29,073 million USD, then rise again to peak at 34,599 million USD before a minor drop to 34,162 million USD in the final period. The general pattern reflects increasing short-term obligations.
- Current Ratio
- The current ratio declines consistently over the periods, indicating a deteriorating short-term liquidity position. It falls from a ratio of 1.32 to just above 1.0 at 1.08 and 1.00 in subsequent years. Although there is a minimal improvement to 1.05, the ratio sharply drops below 1.0 to 0.73 and then to 0.71, suggesting the company's current liabilities exceed current assets in the most recent periods. This signals potential challenges in meeting short-term obligations.
- Overall Analysis
- The analysis reveals a concerning liquidity trend characterized by decreasing current assets coupled with increasing current liabilities. The resulting decline in the current ratio to below 1.0 is indicative of worsening short-term financial health and potential liquidity risks. These developments may warrant closer monitoring and consideration of strategic measures to strengthen the working capital position.
Quick Ratio
Walt Disney Co., quick ratio calculation, comparison to benchmarks
| Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 5,695) | 6,002) | 14,182) | 11,615) | 15,959) | 17,914) | |
| Receivables, net | 13,217) | 12,729) | 12,330) | 12,652) | 13,367) | 12,708) | |
| Total quick assets | 18,912) | 18,731) | 26,512) | 24,267) | 29,326) | 30,622) | |
| Current liabilities | 34,162) | 34,599) | 31,139) | 29,073) | 31,077) | 26,628) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.55 | 0.54 | 0.85 | 0.83 | 0.94 | 1.15 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Alphabet Inc. | — | 1.66 | 1.94 | 2.22 | 2.79 | 2.95 | |
| Comcast Corp. | — | 0.53 | 0.50 | 0.62 | 0.71 | 0.81 | |
| Meta Platforms Inc. | 2.42 | 2.82 | 2.55 | 2.01 | 2.94 | — | |
| Netflix Inc. | 1.14 | 1.18 | 1.07 | 1.12 | 0.91 | — | |
| Trade Desk Inc. | — | 1.83 | 1.69 | 1.87 | 1.65 | 1.50 | |
| Quick Ratio, Sector | |||||||
| Media & Entertainment | — | 1.43 | 1.53 | 1.61 | 1.93 | — | |
| Quick Ratio, Industry | |||||||
| Communication Services | — | 1.04 | 1.12 | 1.08 | 1.23 | — | |
Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 18,912 ÷ 34,162 = 0.55
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets exhibited a downward trend overall from 30,622 million USD in 2020 to 18,912 million USD in 2025. There was a moderate decline between 2020 and 2022, followed by a slight recovery in 2023, but the values dropped sharply again in 2024 and 2025, reaching the lowest observed level.
- Current Liabilities
- Current liabilities increased steadily over the period, starting at 26,628 million USD in 2020 and rising to 34,162 million USD in 2025. The growth was generally consistent, with minor fluctuations, indicating an overall increase in short-term obligations.
- Quick Ratio
- The quick ratio, reflecting the ability to cover current liabilities with quick assets, declined significantly over the timeframe. It decreased from 1.15 in 2020 to a low of 0.54 in 2024, with a slight improvement to 0.55 in 2025. This suggests a weakening liquidity position, as the company’s quick assets became progressively insufficient to meet current liabilities on a short-term basis.
- Summary
- The data reveals a consistent increase in current liabilities combined with a marked decline in quick assets, leading to a deteriorating quick ratio. Despite minor fluctuations in quick assets and the ratio, the overall liquidity position has weakened considerably over the observed years, potentially indicating increased short-term financial risk. This trend warrants careful monitoring and may require strategic action to improve liquidity management.
Cash Ratio
Walt Disney Co., cash ratio calculation, comparison to benchmarks
| Sep 27, 2025 | Sep 28, 2024 | Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | 5,695) | 6,002) | 14,182) | 11,615) | 15,959) | 17,914) | |
| Total cash assets | 5,695) | 6,002) | 14,182) | 11,615) | 15,959) | 17,914) | |
| Current liabilities | 34,162) | 34,599) | 31,139) | 29,073) | 31,077) | 26,628) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.17 | 0.17 | 0.46 | 0.40 | 0.51 | 0.67 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Alphabet Inc. | — | 1.07 | 1.36 | 1.64 | 2.17 | 2.41 | |
| Comcast Corp. | — | 0.18 | 0.15 | 0.17 | 0.30 | 0.41 | |
| Meta Platforms Inc. | 1.95 | 2.32 | 2.05 | 1.51 | 2.27 | — | |
| Netflix Inc. | 0.83 | 0.89 | 0.81 | 0.76 | 0.71 | — | |
| Trade Desk Inc. | — | 0.67 | 0.55 | 0.71 | 0.53 | 0.42 | |
| Cash Ratio, Sector | |||||||
| Media & Entertainment | — | 0.94 | 1.04 | 1.09 | 1.40 | — | |
| Cash Ratio, Industry | |||||||
| Communication Services | — | 0.62 | 0.68 | 0.64 | 0.80 | — | |
Based on: 10-K (reporting date: 2025-09-27), 10-K (reporting date: 2024-09-28), 10-K (reporting date: 2023-09-30), 10-K (reporting date: 2022-10-01), 10-K (reporting date: 2021-10-02), 10-K (reporting date: 2020-10-03).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,695 ÷ 34,162 = 0.17
2 Click competitor name to see calculations.
- Total Cash Assets
-
The total cash assets have exhibited a declining trend over the analyzed periods. Starting from a high of 17,914 million US dollars, the figure decreased moderately in the subsequent year and dropped significantly by 2022. While there was a slight recovery in 2023, the amount sharply declined in both 2024 and 2025, reaching the lowest point of 5,695 million US dollars in the final period.
- Current Liabilities
-
Current liabilities showed an overall increasing trend throughout the periods under review. From 26,628 million US dollars initially, the liabilities rose considerably in 2021 and remained elevated with some fluctuations. The highest value was observed in 2024 at 34,599 million US dollars, with a minor decrease in the last year to 34,162 million US dollars.
- Cash Ratio
-
The cash ratio has consistently decreased across the periods, indicating a weakening short-term liquidity position when measured by the proportion of cash assets to current liabilities. Initially at 0.67, the ratio fell to 0.51 and continued declining to 0.4 in 2022. After a slight recovery in 2023, it dropped sharply to 0.17 in 2024 and remained at that low level in 2025, reflecting limited cash coverage for short-term obligations.
- Overall Analysis
-
The analysis reveals a concerning liquidity trend characterized by a steady decrease in cash assets and a simultaneous increase in current liabilities. The persistent decline in the cash ratio underscores a diminishing capacity to meet short-term liabilities with available cash, which may pose liquidity risks. Despite a minor improvement in cash assets in 2023, the downward trajectory in the final two years suggests a need for close monitoring of cash management and liability levels.