Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Walt Disney Co., solvency ratios
Based on: 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), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Walt Disney Co. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Walt Disney Co. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Walt Disney Co. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Walt Disney Co. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Walt Disney Co. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Walt Disney Co. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Walt Disney Co. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Walt Disney Co. interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Walt Disney Co. fixed charge coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |
Debt to Equity
Walt Disney Co., debt to equity calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term finance lease liabilities | 37) | 37) | 41) | 37) | 5) | 12) | |
| Current portion of borrowings | 4,330) | 3,070) | 5,866) | 5,711) | 8,857) | 3,790) | |
| Borrowings, excluding current portion | 42,101) | 45,299) | 48,540) | 52,917) | 38,129) | 17,084) | |
| Long-term finance lease liabilities | 206) | 219) | 246) | 271) | 146) | 142) | |
| Total debt | 46,674) | 48,625) | 54,693) | 58,936) | 47,137) | 21,028) | |
| Total Disney Shareholder’s equity | 99,277) | 95,008) | 88,553) | 83,583) | 88,877) | 48,773) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 0.47 | 0.51 | 0.62 | 0.71 | 0.53 | 0.43 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Alphabet Inc. | 0.05 | 0.06 | 0.06 | 0.07 | 0.02 | — | |
| Comcast Corp. | 1.17 | 1.17 | 0.99 | 1.15 | 1.24 | — | |
| Meta Platforms Inc. | 0.12 | 0.08 | 0.00 | 0.00 | 0.00 | — | |
| Netflix Inc. | 0.71 | 0.69 | 0.97 | 1.47 | 1.95 | — | |
| Debt to Equity, Sector | |||||||
| Media & Entertainment | 0.30 | 0.32 | 0.31 | 0.36 | 0.35 | — | |
| Debt to Equity, Industry | |||||||
| Communication Services | 0.62 | 0.65 | 0.65 | 0.67 | 0.62 | — | |
Based on: 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), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Debt to equity = Total debt ÷ Total Disney Shareholder’s equity
= 46,674 ÷ 99,277 = 0.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Walt Disney Co. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Walt Disney Co., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term finance lease liabilities | 37) | 37) | 41) | 37) | 5) | 12) | |
| Current portion of borrowings | 4,330) | 3,070) | 5,866) | 5,711) | 8,857) | 3,790) | |
| Borrowings, excluding current portion | 42,101) | 45,299) | 48,540) | 52,917) | 38,129) | 17,084) | |
| Long-term finance lease liabilities | 206) | 219) | 246) | 271) | 146) | 142) | |
| Total debt | 46,674) | 48,625) | 54,693) | 58,936) | 47,137) | 21,028) | |
| Short-term lease liabilities, operating leases (included in Accounts payable and other accrued liabilities) | 740) | 614) | 637) | 747) | —) | —) | |
| Long-term lease liabilities, operating leases (included in Other long-term liabilities) | 3,258) | 3,020) | 2,983) | 2,640) | —) | —) | |
| Total debt (including operating lease liability) | 50,672) | 52,259) | 58,313) | 62,323) | 47,137) | 21,028) | |
| Total Disney Shareholder’s equity | 99,277) | 95,008) | 88,553) | 83,583) | 88,877) | 48,773) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 0.51 | 0.55 | 0.66 | 0.75 | 0.53 | 0.43 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Alphabet Inc. | 0.11 | 0.12 | 0.11 | 0.13 | 0.08 | — | |
| Comcast Corp. | 1.25 | 1.26 | 1.06 | 1.20 | 1.29 | — | |
| Meta Platforms Inc. | 0.25 | 0.22 | 0.12 | 0.09 | 0.11 | — | |
| Netflix Inc. | 0.82 | 0.81 | 1.14 | 1.67 | 2.16 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Media & Entertainment | 0.37 | 0.39 | 0.38 | 0.43 | 0.41 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Communication Services | 0.76 | 0.80 | 0.79 | 0.80 | 0.74 | — | |
Based on: 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), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total Disney Shareholder’s equity
= 50,672 ÷ 99,277 = 0.51
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Walt Disney Co. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Walt Disney Co., debt to capital calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term finance lease liabilities | 37) | 37) | 41) | 37) | 5) | 12) | |
| Current portion of borrowings | 4,330) | 3,070) | 5,866) | 5,711) | 8,857) | 3,790) | |
| Borrowings, excluding current portion | 42,101) | 45,299) | 48,540) | 52,917) | 38,129) | 17,084) | |
| Long-term finance lease liabilities | 206) | 219) | 246) | 271) | 146) | 142) | |
| Total debt | 46,674) | 48,625) | 54,693) | 58,936) | 47,137) | 21,028) | |
| Total Disney Shareholder’s equity | 99,277) | 95,008) | 88,553) | 83,583) | 88,877) | 48,773) | |
| Total capital | 145,951) | 143,633) | 143,246) | 142,519) | 136,014) | 69,801) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.32 | 0.34 | 0.38 | 0.41 | 0.35 | 0.30 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Alphabet Inc. | 0.05 | 0.06 | 0.06 | 0.06 | 0.02 | — | |
| Comcast Corp. | 0.54 | 0.54 | 0.50 | 0.53 | 0.55 | — | |
| Meta Platforms Inc. | 0.11 | 0.08 | 0.00 | 0.00 | 0.00 | — | |
| Netflix Inc. | 0.41 | 0.41 | 0.49 | 0.60 | 0.66 | — | |
| Debt to Capital, Sector | |||||||
| Media & Entertainment | 0.23 | 0.24 | 0.24 | 0.27 | 0.26 | — | |
| Debt to Capital, Industry | |||||||
| Communication Services | 0.38 | 0.39 | 0.40 | 0.40 | 0.38 | — | |
Based on: 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), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 46,674 ÷ 145,951 = 0.32
2 Click competitor name to see calculations.
| Solvency 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. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Walt Disney Co., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term finance lease liabilities | 37) | 37) | 41) | 37) | 5) | 12) | |
| Current portion of borrowings | 4,330) | 3,070) | 5,866) | 5,711) | 8,857) | 3,790) | |
| Borrowings, excluding current portion | 42,101) | 45,299) | 48,540) | 52,917) | 38,129) | 17,084) | |
| Long-term finance lease liabilities | 206) | 219) | 246) | 271) | 146) | 142) | |
| Total debt | 46,674) | 48,625) | 54,693) | 58,936) | 47,137) | 21,028) | |
| Short-term lease liabilities, operating leases (included in Accounts payable and other accrued liabilities) | 740) | 614) | 637) | 747) | —) | —) | |
| Long-term lease liabilities, operating leases (included in Other long-term liabilities) | 3,258) | 3,020) | 2,983) | 2,640) | —) | —) | |
| Total debt (including operating lease liability) | 50,672) | 52,259) | 58,313) | 62,323) | 47,137) | 21,028) | |
| Total Disney Shareholder’s equity | 99,277) | 95,008) | 88,553) | 83,583) | 88,877) | 48,773) | |
| Total capital (including operating lease liability) | 149,949) | 147,267) | 146,866) | 145,906) | 136,014) | 69,801) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.34 | 0.35 | 0.40 | 0.43 | 0.35 | 0.30 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Alphabet Inc. | 0.10 | 0.10 | 0.10 | 0.11 | 0.07 | — | |
| Comcast Corp. | 0.56 | 0.56 | 0.52 | 0.55 | 0.56 | — | |
| Meta Platforms Inc. | 0.20 | 0.18 | 0.10 | 0.08 | 0.10 | — | |
| Netflix Inc. | 0.45 | 0.45 | 0.53 | 0.63 | 0.68 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Media & Entertainment | 0.27 | 0.28 | 0.28 | 0.30 | 0.29 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Communication Services | 0.43 | 0.44 | 0.44 | 0.44 | 0.43 | — | |
Based on: 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), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 50,672 ÷ 149,949 = 0.34
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Walt Disney Co. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Walt Disney Co., debt to assets calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term finance lease liabilities | 37) | 37) | 41) | 37) | 5) | 12) | |
| Current portion of borrowings | 4,330) | 3,070) | 5,866) | 5,711) | 8,857) | 3,790) | |
| Borrowings, excluding current portion | 42,101) | 45,299) | 48,540) | 52,917) | 38,129) | 17,084) | |
| Long-term finance lease liabilities | 206) | 219) | 246) | 271) | 146) | 142) | |
| Total debt | 46,674) | 48,625) | 54,693) | 58,936) | 47,137) | 21,028) | |
| Total assets | 205,579) | 203,631) | 203,609) | 201,549) | 193,984) | 98,598) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.23 | 0.24 | 0.27 | 0.29 | 0.24 | 0.21 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Alphabet Inc. | 0.04 | 0.04 | 0.04 | 0.05 | 0.02 | — | |
| Comcast Corp. | 0.37 | 0.37 | 0.34 | 0.38 | 0.39 | — | |
| Meta Platforms Inc. | 0.08 | 0.06 | 0.00 | 0.00 | 0.00 | — | |
| Netflix Inc. | 0.30 | 0.30 | 0.35 | 0.42 | 0.43 | — | |
| Debt to Assets, Sector | |||||||
| Media & Entertainment | 0.17 | 0.17 | 0.17 | 0.20 | 0.19 | — | |
| Debt to Assets, Industry | |||||||
| Communication Services | 0.26 | 0.27 | 0.27 | 0.27 | 0.26 | — | |
Based on: 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), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 46,674 ÷ 205,579 = 0.23
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Walt Disney Co. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Walt Disney Co., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Short-term finance lease liabilities | 37) | 37) | 41) | 37) | 5) | 12) | |
| Current portion of borrowings | 4,330) | 3,070) | 5,866) | 5,711) | 8,857) | 3,790) | |
| Borrowings, excluding current portion | 42,101) | 45,299) | 48,540) | 52,917) | 38,129) | 17,084) | |
| Long-term finance lease liabilities | 206) | 219) | 246) | 271) | 146) | 142) | |
| Total debt | 46,674) | 48,625) | 54,693) | 58,936) | 47,137) | 21,028) | |
| Short-term lease liabilities, operating leases (included in Accounts payable and other accrued liabilities) | 740) | 614) | 637) | 747) | —) | —) | |
| Long-term lease liabilities, operating leases (included in Other long-term liabilities) | 3,258) | 3,020) | 2,983) | 2,640) | —) | —) | |
| Total debt (including operating lease liability) | 50,672) | 52,259) | 58,313) | 62,323) | 47,137) | 21,028) | |
| Total assets | 205,579) | 203,631) | 203,609) | 201,549) | 193,984) | 98,598) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.25 | 0.26 | 0.29 | 0.31 | 0.24 | 0.21 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Alphabet Inc. | 0.07 | 0.08 | 0.08 | 0.09 | 0.06 | — | |
| Comcast Corp. | 0.39 | 0.39 | 0.37 | 0.40 | 0.41 | — | |
| Meta Platforms Inc. | 0.17 | 0.15 | 0.09 | 0.07 | 0.08 | — | |
| Netflix Inc. | 0.35 | 0.35 | 0.41 | 0.47 | 0.48 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Media & Entertainment | 0.21 | 0.22 | 0.21 | 0.23 | 0.22 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Communication Services | 0.32 | 0.33 | 0.33 | 0.33 | 0.31 | — | |
Based on: 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), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 50,672 ÷ 205,579 = 0.25
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Walt Disney Co. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Walt Disney Co., financial leverage calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 205,579) | 203,631) | 203,609) | 201,549) | 193,984) | 98,598) | |
| Total Disney Shareholder’s equity | 99,277) | 95,008) | 88,553) | 83,583) | 88,877) | 48,773) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 2.07 | 2.14 | 2.30 | 2.41 | 2.18 | 2.02 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Alphabet Inc. | 1.42 | 1.43 | 1.43 | 1.44 | 1.37 | — | |
| Comcast Corp. | 3.20 | 3.18 | 2.87 | 3.03 | 3.18 | — | |
| Meta Platforms Inc. | 1.50 | 1.48 | 1.33 | 1.24 | 1.32 | — | |
| Netflix Inc. | 2.37 | 2.34 | 2.81 | 3.55 | 4.48 | — | |
| Financial Leverage, Sector | |||||||
| Media & Entertainment | 1.80 | 1.83 | 1.82 | 1.85 | 1.87 | — | |
| Financial Leverage, Industry | |||||||
| Communication Services | 2.39 | 2.45 | 2.43 | 2.45 | 2.42 | — | |
Based on: 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), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Financial leverage = Total assets ÷ Total Disney Shareholder’s equity
= 205,579 ÷ 99,277 = 2.07
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Walt Disney Co. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Walt Disney Co., interest coverage calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to The Walt Disney Company (Disney) | 2,354) | 3,145) | 1,995) | (2,864) | 11,054) | 12,598) | |
| Add: Net income attributable to noncontrolling interest | 1,036) | 360) | 512) | 390) | 530) | 468) | |
| Less: Income (loss) from discontinued operations, net of income tax | —) | (48) | (29) | (32) | 671) | —) | |
| Add: Income tax expense | 1,379) | 1,732) | 25) | 699) | 3,031) | 1,663) | |
| Add: Interest expense | 1,973) | 1,549) | 1,546) | 1,647) | 1,246) | 682) | |
| Earnings before interest and tax (EBIT) | 6,742) | 6,834) | 4,107) | (96) | 15,190) | 15,411) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 3.42 | 4.41 | 2.66 | -0.06 | 12.19 | 22.60 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Alphabet Inc. | 279.30 | 200.80 | 263.24 | 357.16 | 397.25 | — | |
| Comcast Corp. | 6.01 | 3.38 | 5.46 | 4.07 | 4.72 | — | |
| Meta Platforms Inc. | 107.34 | 164.74 | 3,153.27 | 2,371.00 | 1,241.60 | — | |
| Netflix Inc. | 9.87 | 8.45 | 8.63 | 5.17 | 4.29 | — | |
| Interest Coverage, Sector | |||||||
| Media & Entertainment | 22.91 | 18.95 | 24.80 | 14.53 | 15.86 | — | |
| Interest Coverage, Industry | |||||||
| Communication Services | 10.21 | 8.50 | 11.90 | 6.51 | 7.88 | — | |
Based on: 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), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 6,742 ÷ 1,973 = 3.42
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Walt Disney Co. interest coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level. |
Fixed Charge Coverage
Walt Disney Co., fixed charge coverage calculation, comparison to benchmarks
| Sep 30, 2023 | Oct 1, 2022 | Oct 2, 2021 | Oct 3, 2020 | Sep 28, 2019 | Sep 29, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to The Walt Disney Company (Disney) | 2,354) | 3,145) | 1,995) | (2,864) | 11,054) | 12,598) | |
| Add: Net income attributable to noncontrolling interest | 1,036) | 360) | 512) | 390) | 530) | 468) | |
| Less: Income (loss) from discontinued operations, net of income tax | —) | (48) | (29) | (32) | 671) | —) | |
| Add: Income tax expense | 1,379) | 1,732) | 25) | 699) | 3,031) | 1,663) | |
| Add: Interest expense | 1,973) | 1,549) | 1,546) | 1,647) | 1,246) | 682) | |
| Earnings before interest and tax (EBIT) | 6,742) | 6,834) | 4,107) | (96) | 15,190) | 15,411) | |
| Add: Operating lease cost | 820) | 796) | 853) | 899) | 1,100) | 930) | |
| Earnings before fixed charges and tax | 7,562) | 7,630) | 4,960) | 803) | 16,290) | 16,341) | |
| Interest expense | 1,973) | 1,549) | 1,546) | 1,647) | 1,246) | 682) | |
| Operating lease cost | 820) | 796) | 853) | 899) | 1,100) | 930) | |
| Fixed charges | 2,793) | 2,345) | 2,399) | 2,546) | 2,346) | 1,612) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 2.71 | 3.25 | 2.07 | 0.32 | 6.94 | 10.14 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Alphabet Inc. | 18.67 | 18.42 | 25.06 | 16.92 | 17.10 | — | |
| Comcast Corp. | 4.87 | 2.82 | 4.48 | 3.47 | 4.00 | — | |
| Meta Platforms Inc. | 19.69 | 15.18 | 31.41 | 24.62 | 22.41 | — | |
| Netflix Inc. | 5.64 | 5.00 | 5.46 | 3.65 | 2.92 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Media & Entertainment | 10.79 | 9.06 | 12.40 | 7.98 | 8.67 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Communication Services | 5.36 | 4.25 | 5.95 | 3.73 | 4.58 | — | |
Based on: 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), 10-K (reporting date: 2019-09-28), 10-K (reporting date: 2018-09-29).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 7,562 ÷ 2,793 = 2.71
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Walt Disney Co. fixed charge coverage ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023. |