Walt Disney Co. (NYSE:DIS)

Debt to equity ratio

The debt to equity ratio showed an initial increase from 0.41 in December 2018 to a peak of 0.75 by June 2020, indicating a rising reliance on debt relative to equity during this period. Following this peak, a consistent downward trend is observed, with the ratio gradually declining to 0.39 by June 2025, suggesting a strengthening equity position or reduction in debt levels over the later periods.

Debt to capital ratio

The debt to capital ratio followed a similar trajectory, increasing from 0.29 in December 2018 to a high of 0.43 in June 2020. Subsequently, the ratio decreased steadily, reaching 0.28 by June 2025. This pattern implies a temporary increase in debt financing which was later curtailed, improving the capital structure by reducing overall debt proportion relative to total capital.

Debt to assets ratio

The debt to assets ratio increased from 0.21 in December 2018 to 0.31 in June 2020, corresponding with the other debt measures. Afterward, a gradual reduction occurred, lowering the ratio to 0.21 by June 2025. This trend indicates that debt financing grew relative to assets until mid-2020, then decreased, enhancing asset coverage and financial stability.

Financial leverage ratio

Financial leverage rose from 1.99 in December 2018 to a peak of 2.42 by June 2020, reflecting increased use of debt to finance assets. Following this peak, there was a steady decrease in financial leverage, declining to 1.80 by June 2025. This denotes a reduction in reliance on debt relative to equity, signaling an overall deleveraging and potentially improved risk profile in the latter periods.

The analysis of the quarterly financial data reveals several notable trends in the company’s debt and equity structure over the reviewed periods.

Total Debt

The total debt exhibited significant fluctuation throughout the time frame. Initially, there was a sharp increase from approximately $20.7 billion to a peak near $64.4 billion by mid-2020. Following this peak, a gradual decline is observable, with total debt decreasing steadily to about $42.3 billion by mid-2025. This pattern suggests a phase of substantial borrowing and subsequent deleveraging or repayment over the observed intervals.

Total Shareholders’ Equity

The shareholders’ equity showed consistent growth over the examined periods. Starting at roughly $50.3 billion, it increased steadily to exceed $109.1 billion by mid-2025. This growth indicates accumulation of retained earnings and possibly other equity gains, reflecting an overall strengthening of the company’s net worth and financial foundation.

Debt to Equity Ratio

The debt-to-equity ratio mirrors the movements in debt and equity, with an initial increase from 0.41 to a peak of 0.75 by mid-2020, indicating rising leverage relative to equity. Subsequently, this ratio decreased gradually and consistently to below 0.40 by mid-2025. This trend reveals that the company effectively managed to reduce its leverage and improve its capital structure during the latter periods, enhancing financial stability.

In summary, the company transitioned from a period of heightened debt accumulation and increased leverage toward a phase of deleveraging combined with continuing growth in equity. The improving debt-to-equity ratio towards the end of the analyzed span reflects a more balanced and potentially less risky financial position.

Total Debt

The total debt demonstrated a notable increase from late 2018 through mid-2020, rising from approximately $20.7 billion to a peak near $64.4 billion. This was followed by a gradual decline from October 2020 onward, with total debt decreasing steadily to about $42.3 billion by mid-2025. This trend indicates a period of increased borrowing or liabilities followed by cautious deleveraging over the subsequent years.

Total Capital

Total capital expanded significantly from late 2018 to early 2019, more than doubling from roughly $70.9 billion to nearly $146.9 billion. After that surge, total capital remained relatively stable with moderate fluctuations, mostly staying within the $140 billion to $150 billion range. The figures show consistent capital base maintenance with slight growth towards mid-2025, reaching over $151 billion.

Debt to Capital Ratio

The debt to capital ratio increased from 0.29 in late 2018 to a peak of 0.43 around mid-2020, reflecting a higher proportion of debt relative to the company’s capital during this period. Thereafter, the ratio steadily declined reaching 0.28 by mid-2025, indicating an improvement in capital structure with a reduced reliance on debt. This declining trend in leverage ratio post-2020 suggests an emphasis on strengthening the balance sheet and potentially reducing financial risk.

Summary of Trends and Insights

Overall, the data reveals an initial phase of increased debt accumulation up to mid-2020, coinciding with a significant increase in total capital. Following this, the company appears to have pursued a strategy of debt reduction alongside maintaining a stable and slightly growing capital base. The reduction in the debt to capital ratio after 2020 implies focused efforts on deleveraging and enhancing financial stability. The moderate fluctuations in total capital suggest ongoing capital management without drastic expansions or contractions.

The analysis of the quarterly financial data reveals observable trends in the company's leverage and asset base over the specified periods.

Total Debt

The total debt experienced a significant increase, rising sharply from US$20,665 million in December 2018 to a peak of US$64,421 million in June 2020. Following this peak, the debt level showed a consistent downward trend, declining to US$42,263 million by June 2025. This reduction indicates a strategic effort towards deleveraging after the substantial rise.

Total Assets

Total assets more than doubled initially, increasing from US$99,941 million in December 2018 to around US$214,342 million by March 2019. Post this increase, the asset base stabilized and fluctuated within a narrow range around US$200 billion for the remaining periods up to June 2025. This stability suggests a plateau in asset growth following rapid accumulation.

Debt to Assets Ratio

The debt-to-assets ratio mirrored the trend in total debt, increasing from 0.21 at the end of 2018 to a maximum of 0.31 in June 2020. After this peak, the ratio steadily decreased, reaching 0.21 by June 2025. The decrease in this ratio after mid-2020 signifies improved capital structure and reduced financial risk through lower relative debt levels.

Overall, the data outlines a period of aggressive debt accumulation leading up to mid-2020, followed by a cautious deleveraging phase accompanied by relatively stable asset levels. The improving debt-to-assets ratio in recent periods suggests enhanced balance sheet strength and a potential shift in financial strategy towards reducing reliance on debt financing.

The analysis of the quarterly financial data reveals several important trends relating to assets, equity, and financial leverage over the presented periods.

Total Assets

Total assets experienced significant growth from the initial value of approximately 99.9 billion US dollars to over 214 billion US dollars by March 2019. This rapid increase was followed by a gradual decline and stabilization around the 200 billion US dollar mark, with minor fluctuations observed up to the final recorded period. Notably, from December 2018 to the first quarter of 2019, total assets more than doubled, but subsequently settled to a fairly stable range between 195 billion and 205 billion US dollars over the next several years.

Total Disney Shareholders’ Equity

Shareholders’ equity showed a consistent upward trend throughout the entire timeframe. Starting at just over 50 billion US dollars in December 2018, equity more than doubled by the end of the period, reaching approximately 109 billion US dollars. The increase was steady and persistent with no significant declines, indicating sustained growth in the equity base. This pattern suggests improved retained earnings or capital inflows contributing positively to equity generation.

Financial Leverage (Ratio)

Financial leverage, defined as the ratio of total assets to shareholders’ equity, initially increased from 1.99 to a peak of approximately 2.42 by June 2020, which corresponds to the period after the sharp asset growth phase. However, from mid-2020 onwards, the ratio gradually declined to 1.80 by June 2025. This decreasing trend in leverage implies a relative increase in equity compared to assets or a reduction in debt levels, reflective of strengthening financial stability over the most recent periods.

In summary, total assets surged sharply initially but stabilized afterward, shareholders’ equity demonstrated continuous growth, and financial leverage increased early on but subsequently declined steadily. These dynamics indicate a transition from a leveraged asset growth phase to more balanced and equity-supported financial structuring in recent years.