The Walt Disney Co (BUE:DIS) Interest Coverage

: 4.51 (As of Mar. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. The Walt Disney Co's Operating Income for the three months ended in Mar. 2023 was ARS449,426 Mil. The Walt Disney Co's Interest Expense for the three months ended in Mar. 2023 was ARS-99,565 Mil. The Walt Disney Co's interest coverage for the quarter that ended in Mar. 2023 was 4.51. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for The Walt Disney Co's Interest Coverage or its related term are showing as below:

BUE:DIS' s Interest Coverage Range Over the Past 10 Years
Min: 2.37 Med: 26.47 Max: 49.9
Current: 4.06

BUE:DIS's Interest Coverage is ranked worse than
73.57% of 613 companies
in the Media - Diversified industry
Industry Median: 16.32 vs BUE:DIS: 4.06

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Walt Disney Co Interest Coverage Historical Data

The historical data trend for The Walt Disney Co's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The Walt Disney Co Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Interest Coverage

25.85

12.10

2.54

2.37

4.37

The Walt Disney Co Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Interest Coverage																4.28	6.40	1.25	4.29	4.51

Competitive Comparison

For the Entertainment subindustry, The Walt Disney Co's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

The Walt Disney Co Interest Coverage Distribution

For the Media - Diversified industry and Communication Services sector, The Walt Disney Co's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Walt Disney Co's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

The Walt Disney Co Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Walt Disney Co's Interest Coverage for the fiscal year that ended in Sep. 2022 is calculated as

Here, for the fiscal year that ended in Sep. 2022, The Walt Disney Co's Interest Expense was ARS-215,234 Mil. Its Operating Income was ARS940,691 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS6,744,355 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2022 )	/	Interest Expense (A: Sep. 2022 )
	=	-1	*	940691.486	/	-215233.547
	=	4.37

The Walt Disney Co's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the three months ended in Mar. 2023, The Walt Disney Co's Interest Expense was ARS-99,565 Mil. Its Operating Income was ARS449,426 Mil. And its Long-Term Debt & Capital Lease Obligation was ARS8,902,789 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	449426.26	/	-99565.202
	=	4.51

The higher the ratio, the stronger the company's Financial Strength is.

The Walt Disney Co (BUE:DIS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

The Walt Disney Co Interest Coverage Related Terms

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The Walt Disney Co (BUE:DIS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » The Walt Disney Co (BUE:DIS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

DIS:USA DIS:Mexico 0QZO:UK WDP:Germany DIS:Chile DIS:Canada DISB34:Brazil DIS:Austria

Address

500 South Buena Vista Street, Burbank, CA, USA, 91521

Website

https://www.thewaltdisneycompany.com

Walt Disney owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker. These characters and others are featured in several Disney theme parks around the world. Disney makes live-action and animated films under studios such as Pixar, Marvel, and Lucasfilm and also operates media networks including ESPN and several TV production studios. Disney shifted into a more streaming-focused firm by acquiring the remainder of Hulu and launching Disney+ and ESPN+. Across its streaming platforms, Disney had over 235 million subscribers as of September 2022, up sharply from under 64 million in December 2019.