Walt Disney Co. (NYSE:DIS)

The financial data reflects a consistent improvement in the company's leverage and coverage ratios over the analyzed period.

Debt to Equity Ratios

Both the standard debt to equity ratio and the debt to equity ratio including operating lease liabilities show a clear downward trend. The standard ratio decreased from 0.71 to 0.38, while the ratio including operating lease liabilities declined from 0.75 to 0.41. This indicates a gradually reduced reliance on debt financing relative to shareholder equity.

Debt to Capital Ratios

The debt to capital ratio and its variant including operating lease liabilities both exhibit a similar decreasing pattern. The debt to capital ratio dropped from 0.41 to 0.28, and with operating leases included, from 0.43 to 0.29. This suggests that the proportion of debt in total capital structure has been consistently reduced.

Debt to Assets Ratios

Debt to assets ratios follow a declining trajectory as well, with the debt to assets ratio declining from 0.29 to 0.21 and the adjusted ratio including operating leases falling from 0.31 to 0.23. This trend indicates a strengthening asset base relative to debt liabilities.

Financial Leverage

Financial leverage shows a steady decrease from 2.41 down to 1.8. This reduction indicates a lower level of total assets funded by equity, reflecting an improvement in the company’s capital structure and potentially a lower risk profile.

Interest Coverage Ratio

Interest coverage ratios reveal significant positive development. It started from a negative value of -0.06, improving drastically to 7.62 by the final period. Early negative coverage indicates an inability to meet interest obligations from operating earnings in the initial year, but subsequent years show robust improvements, indicating stronger earnings relative to interest expense.

Fixed Charge Coverage Ratio

The fixed charge coverage also strengthens notably, increasing from 0.32 to 5.64. This improvement highlights enhanced ability to cover fixed financial obligations, including interest and lease expenses.

Overall, the data illustrates a trend towards a healthier financial position with decreased leverage and improved coverage of interest and fixed charges, suggesting reduced financial risk and enhanced capacity to meet debt-related obligations.

Total Debt

The total debt demonstrates a consistent downward trend over the analyzed period. Starting at 58,936 million US dollars in 2020, it decreased steadily each year, reaching 42,188 million US dollars in 2025. This represents a notable reduction in the company's financial leverage, indicating an improvement in debt management or repayment strategies.

Total Disney Shareholder’s Equity

Shareholder’s equity exhibits a continuous increase from 83,583 million US dollars in 2020 to 109,869 million US dollars in 2025. This upward progression signifies a growth in the company’s net assets and suggests a strengthening capital base, potentially reflecting retained earnings accumulation or equity financing activities that enhance the company's financial position.

Debt to Equity Ratio

The debt to equity ratio follows a steady decline from 0.71 in 2020 to 0.38 in 2025, highlighting an ongoing reduction in financial risk and leverage. This decreasing ratio aligns with the combined trends of decreasing total debt and increasing shareholder equity, portraying an improved balance between borrowing and equity financing. The lower ratio suggests enhanced financial stability and may increase the company’s attractiveness to investors and lenders.

The financial data reveals a clear trend of decreasing total debt and increasing shareholder’s equity over the analyzed periods. Total debt, including operating lease liabilities, consistently declined from $62,323 million in 2020 to $45,423 million in 2025, indicating a reduction in the company's leverage or obligations over time.

Simultaneously, there has been a steady increase in total Disney shareholder’s equity, which grew from $83,583 million in 2020 to $109,869 million in 2025. This upward trend suggests a strengthening in the company’s net asset base and possibly reflects retained earnings accumulation or other equity enhancements.

The debt to equity ratio correlates with these changes, displaying a significant decrease from 0.75 in 2020 to 0.41 in 2025. This ratio's decline indicates an improvement in financial structure, with a stronger equity position relative to debt.

Total Debt

Decreased steadily across all reported years, declining by approximately 27% between 2020 and 2025.

Shareholder's Equity

Increased gradually over the same period, rising by about 31%, indicating growth in the company’s net worth.

Debt to Equity Ratio

Showed a consistent downward trajectory, reflecting reduced financial leverage and a healthier balance sheet.

Overall, the company's financial trends portray enhanced stability and reduced risk by lowering debt levels while increasing equity. The progressive deleveraging and strengthening equity base suggest management’s focus on solidifying the company's financial position over the medium term.

Total Debt

There is a clear and consistent declining trend in total debt over the observed periods. Total debt decreased from 58,936 million US dollars to 42,188 million US dollars, indicating a strategic reduction in leverage. This represents a reduction of approximately 28.4% from the beginning to the end of the period.

Total Capital

Total capital has shown a gradual increase during the same timeframe. Starting from 142,519 million US dollars, it rose steadily to 152,057 million US dollars. This growth suggests expansions in equity or retained earnings, with total capital increasing by about 6.7% over the period.

Debt to Capital Ratio

The debt to capital ratio has steadily declined from 0.41 to 0.28 throughout the reporting periods. This trend confirms a consistent improvement in the company’s capital structure, with a decreasing dependency on debt financing relative to total capital. The ratio's reduction reflects enhanced financial stability and potentially lower financial risk.

The financial data reveals a consistent downward trend in total debt, indicating a deliberate effort to reduce leverage over the analyzed periods. Beginning at 62,323 million US dollars in 2020, the total debt steadily decreases each year, reaching 45,423 million US dollars by 2025. This reduction in debt suggests an improving debt management strategy and potentially lower financial risk.

In contrast, the total capital shows a generally stable to slightly increasing pattern, moving from 145,906 million US dollars in 2020 to 155,292 million US dollars in 2025. This increase in total capital, coupled with the reduction in debt, implies an overall strengthening of the capital base and better capitalization of the company.

These shifts are reflected in the debt to capital ratio, which consistently declines from 0.43 in 2020 to 0.29 in 2025. This ratio decrease indicates a growing proportion of equity or other capital sources relative to debt, signifying improved financial stability and reduced leverage risks. The decreasing trend of this ratio underscores the company's strategic focus on balancing its capital structure towards lower reliance on debt.

Total Debt Trend

Marked decline from 62,323 to 45,423 million US dollars over six years.

Total Capital Trend

Gradual increase from 145,906 to 155,292 million US dollars, suggesting capital expansion or retention.

Debt to Capital Ratio

Continuous reduction from 0.43 to 0.29, indicating enhanced equity weighting and lower financial leverage.

Overall, the data illustrates a financially conservative approach with a focus on deleveraging and enhancing capital structure integrity over the reviewed periods. This trend typically aligns with a strategy aiming for long-term financial health and reduced vulnerability to market volatility or rising interest rates.

Total Debt

The total debt of the company shows a consistent downward trend over the six-year period. Starting from approximately $58.9 billion in 2020, total debt steadily decreases each year, reaching around $42.2 billion by 2025. This indicates a progressive reduction in the company’s leverage through debt repayment or restructuring efforts.

Total Assets

Total assets remain relatively stable across the years, fluctuating slightly around the $200 billion mark. There is a minor increase from 2020 to 2023, peaking just above $205 billion, followed by a moderate decrease through 2024 and 2025. The overall asset base does not experience drastic changes, suggesting asset management stability and a balanced investment approach.

Debt to Assets Ratio

The debt to assets ratio exhibits a clear declining trend, moving from 0.29 in 2020 down to 0.21 in 2025. This ratio decrease reflects an improvement in the company’s financial leverage, implying reduced reliance on debt for asset financing. The consistent ratio reduction aligns with the decrease in total debt while total assets remain stable, reinforcing the company’s focus on strengthening its balance sheet.

Total Debt (Including Operating Lease Liability)

The total debt shows a consistent downward trend over the observed periods. Starting at $62,323 million, it gradually decreased each year to $45,423 million by the latest reported period. This represents a significant reduction in the company's leverage obligations.

Total Assets

Total assets remained relatively stable throughout the periods. The values hovered around the $200 billion mark, with a slight increase initially followed by a mild decline, ending close to $197,514 million. This stability in asset base indicates maintenance of the company's resource capacity.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio has steadily declined from 0.31 to 0.23 over the reported timespan. This suggests that the company has been reducing its leverage relative to its asset base, improving its financial stability and potentially lowering financial risk.

Overall Analysis

The observed data reflects a strategic shift towards debt reduction, as evidenced by the consistent decrease in total debt and debt-to-assets ratio. While total assets remained relatively constant, the improved ratio implies enhanced balance sheet strength. This trend is typically favorable from a financial health perspective, indicating careful management of liabilities while sustaining asset levels.

Total Assets

The total assets exhibited a relatively stable trend over the analyzed periods, starting at approximately 201.5 billion US dollars and peaking slightly at around 205.6 billion in the fiscal year ending in 2023. However, there was a noticeable decline in total assets in the subsequent years, reducing to around 196.2 billion in 2024, followed by a small increase to approximately 197.5 billion by 2025. This pattern suggests a period of stability followed by minor asset reductions and consolidation efforts.

Total Disney Shareholder’s Equity

Shareholder’s equity showed a consistent upward trajectory throughout the reported years. Beginning at roughly 83.6 billion US dollars, equity increased steadily each year, reaching about 109.9 billion by 2025. This growth indicates an enhancement in the company's net value attributable to shareholders, reflecting either retained earnings accumulation, capital injections, or both, contributing to strengthened financial resilience.

Financial Leverage

The financial leverage ratio demonstrated a clear decreasing trend, moving from 2.41 in 2020 down to 1.80 by 2025. This decline in leverage indicates that the company progressively reduced its reliance on debt relative to equity over the period. As leverage decreased, the financial risk associated with debt levels likely diminished, signaling a more conservative capital structure and potentially improved creditworthiness.

The earnings before interest and tax (EBIT) of the company exhibit a strong upward trajectory over the analyzed periods. Beginning with a negative EBIT of -96 million US dollars in 2020, there is a robust recovery and consistent growth, reaching 13,815 million US dollars by 2025. This progression demonstrates a significant improvement in operating profitability and overall business performance.

The interest expense remains relatively stable with minor fluctuations throughout the years. Starting at 1,647 million US dollars in 2020, it decreases slightly to 1,546 million in 2021, then hovers around similar values, peaking at 2,070 million in 2024 before decreasing again to 1,812 million in 2025. This stability suggests a controlled cost of debt despite changing economic conditions or financing activities.

The interest coverage ratio, which measures the ability to meet interest obligations from operating earnings, shows a marked improvement. Initially, the ratio is negative in 2020 (-0.06), reflecting the negative EBIT and inability to cover interest expenses. It increases substantially over the years to 7.62 by 2025, signaling a much stronger capacity to service debt from earnings. The improvement in this ratio correlates with the rising EBIT and relatively steady interest expenses, highlighting enhanced financial stability and reduced credit risk.

Overall, the data points to a positive financial evolution characterized by growing operational profitability and improving debt servicing capability, despite consistent interest expenses. The trends indicate strengthened earnings performance and increased financial health over time.

Earnings before Fixed Charges and Tax

The earnings before fixed charges and tax exhibit a clear upward trend over the observed periods. Starting at 803 million US dollars in 2020, the figure increases significantly to 4960 million in 2021 and continues to grow steadily each year, reaching 14,588 million by 2025. This reflects substantial improvement in the company's operating profitability over the time frame.

Fixed Charges

Fixed charges remain relatively stable with minor fluctuations throughout the periods. The values begin at 2546 million US dollars in 2020, slightly declining to 2399 million in 2021 and then showing small variances in subsequent years, with a peak at 2996 million in 2024, before decreasing again to 2585 million in 2025. Overall, there is no significant upward or downward trend in fixed charges.

Fixed Charge Coverage

The fixed charge coverage ratio shows marked improvement over the years. Starting from a low coverage ratio of 0.32 in 2020, it jumps to 2.07 in 2021, and rises further to 3.25 in 2022. Though there is a slight decrease to 2.71 in 2023, the ratio increases again to 3.53 in 2024 and reaches a notable high of 5.64 in 2025. This trend indicates improving ability to cover fixed charges with earnings, reflecting enhanced financial health and lower risk associated with fixed liabilities.